This program enables people to help buy a home for immediate family members who have good credit but lack the income to meet standard GDSR / TDSR requirements.

Suggested applications of the program include:

  • A parent who wishes to help an adult entrepreneurial child buy a home.
  • A parent helping to buy a home for an adult child at a post-secondary educational facility.
  • An adult helping to buy a home for elderly parents who are on a fixed income.
  • This program does not include the purchase of non-owner-occupied investment properties nor purchases for family members with poor credit.

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

Purchase Transactions:

  • 95% LTV
    • Property value ≤ $500,000 - 5% down payment required.
    • Property value > $500,000 and < $1,000,000 - 5% down payment required up to $500,000, with an additional 10% down payment on the portion of the home value above $500,000.

Loan Security

  • First mortgages

Eligible Properties

  • Maximum 2 units where 1 unit must be occupied by an immediate family member.
  • New construction covered by a Lender approved New Home Warranty Program*
  • Existing resale properties.
  • Readily marketable residential dwellings located in markets with demonstrated ongoing re-sale demand.
  • Estimated remaining economic life of the property should be a minimum of 25 years.
  • Property must be in good condition with good marketability.

* For new construction properties in the territories (Yukon, Northwest and Nunavut Territories) where New Home Warranty is not available, Lenders must obtain either an occupancy permit or a third-party report from a qualified professional such as: an inspector, architect or engineer. The qualified professional must carry the appropriate liability insurance and confirm construction is completed in compliance with applicable bylaws and regulations.

Maximum Property Value

  • Property value must be less than $1,000,000.

Qualifying Terms and Interest Rates

  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted.
  • Maximum interest rate term of 25 years.
  • The qualifying interest rate is the greater of the contract rate or 5-year benchmark rate.

Amortization Options

  • Up to 25 years

Premium Rates:

The premium payable will be the lesser of the premium as a % of the total new loan amount or the premium as a % of the top-up portion on the additional loan amount (if existing insured) based on the rates below:

LTV Ratio Premium Rate Top-Up Premium
Up to 65% 0.60% 0.60%
65.01% - 75% 1.70% 5.90%
75.01% - 80% 2.40% 6.05%
80.01% - 85% 2.80% 6.20%
85.01% - 90% 3.10% 6.25%
90.01% - 95% 4.00% 6.30%

The mortgage insurance premium is non-refundable, paid at the time of closing and may be added onto the mortgage.

Borrower Qualification

Income and Employment:

  • Standard income and employment verification requirements apply

Credit:

  • >80% LTV: At least one applicant is required to have a minimum credit bureau score of 600.
  • ≤ 80% LTV: At least one applicant should have a minimum recommended credit bureau score of 680.

Down Payment:

  • Must be from own resources and may include personal savings, RRSP withdrawal, existing home equity, proceeds from sale of property.

Additional Criteria:

  • Applicant(s) buying the home for a family member must have clean credit, stable employment and income, positive net worth.
  • An immediate family member is defined as a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependent.
  • All qualifying applicants, including the resident family member, must be on the title.
  • The income and debts, including shelter costs, of all persons on the application will be used along with those of the occupying borrower to calculate the TDSR.

Debt Service Ratios

GDS TDS
39% 44%

Documentation Requirements

  • Standard documentation requirements apply.
  • Genworth Canada may request that the lender provide a copy of the required documentation on a case-by-case basis

Portability

  • Genworth Canada mortgage insurance is portable, so home buyers can take advantage of a Lender’s portability plan. For further details, refer to Portability Feature product overview

Assumptions / Assignments

  • Mortgage is assumable subject to meeting Lender guidelines.

Eligible Products

  • Homebuyer 95 Program
  • Purchase Plus Improvements Program

Ineligible Products

  • Business for Self (Alt.A) Program
  • Borrowed Down Payment Program
  • New to Canada Program
  • Progress Advance Program
  • Vacation / Secondary Homes Program
  • Investment Property Program
  • Second Mortgage Program