Genworth Canada’s Investment Property Program provides qualified borrowers an opportunity to purchase an investment property with as little as a 20% down payment.

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

Purchase Transactions:

  • 80% LTV

Loan Security

  • First mortgages

Eligible Properties

  • 2 - 4 units
  • 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
  • In addition, the property must meet the following criteria:
    • Municipal zoning
    • Fully self-contained units

* 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.

Ineligible Property Types

  • 1-unit dwellings
  • Time-share Interests
  • Vacation Homes
  • Commercial zoning
  • Rooming Houses
  • Quarter Share / Shared Ownership
  • Rental Pools

Maximum Property Value

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

Maximum Loan Amounts

  • Metro Toronto, Metro Calgary & Metro Vancouver: $750,000
  • Rest of Canada: $600,000

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% 1.45% 3.15%
65.01% - 75% 2.00% 3.45%
75.01% - 80% 2.90% 4.30%

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

Borrower Qualification

Income & Employment:

  • Standard income and employment verification requirements apply.

Credit:

  • Borrowers should have a strong history of managing their credit
  • Minimum credit bureau score of 680 is recommended.
  • Two (2) trade lines with at least two (2) years history
  • No prior bankruptcy
  • Genworth Canada will consider applications with lower scores based on the overall merit of the application and where other risk mitigating factors exist.

Down Payment:

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

Rental Income:

  • Genworth Canada will accept 100% of the rental income subject to:
    • Each applicant having a minimum credit score of 680
    • Income can be validated using a two year average based on lease agreements, or
    • Where rental income cannot be validated with lease agreements for a two year period, income for new or existing units is to be confirmed via fair market rent from an appraisal. Lenders should apply a market vacancy rate in accordance with their internal policy.
  • If the above credit and income requirements cannot be met, 50% of rental income is to be used for qualification.
  • Taxes and heat are to remain excluded from the debt service calculation.

    Total Debt Service Ratio (TDSR) Calculation:

    TDSR:
    Principal + Interest + 50% Condo Fees (if applicable) + Other Debts
    Gross Annual Income + % of Gross Rents

Additional Criteria

  • Personal guarantees are required when the borrower is not an individual (e.g. corporate entity).
  • The personal guarantee cannot be released without prior consent from Genworth Canada.

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.
  • Genworth Canada requires that the Lender obtains a General Assignment of Rents and Leases or include this requirement in the Standard Charge Terms.

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.
  • When porting from an existing standard Genworth Canada insured loan to an Investment Property loan, the premium will be the lesser of:
    • The outstanding mortgage balance multiplied by 0.50% + the top-up amount multiplied by the top-up premium rate, or
    • The new loan amount multiplied by the full premium rate.

Assumptions / Assignments

  • Mortgage is assumable subject to meeting Lender guidelines.

Eligible Products

  • Purchase Plus Improvements Program

Ineligible Products

  • Business for Self (Alt. A) Program
  • Borrowed Down Payment Program
  • Family Plan Program
  • Homebuyer 95 Program
  • New to Canada Program
  • Progress Advance Program
  • Vacation / Secondary Homes Program
  • Second Mortgage Program