Genworth Canada can help qualified home buyers make their new home just right for them, with tailored improvements, immediately after taking possession of the purchased property. All this can be done with one manageable mortgage and with only 5% down.

Learn more about
Purchase Plus Improvements
with our helpful guide.

Download Now! Purchase Plus Improvements Guide Cover

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

Purchase Transactions:

  • 1 and 2 units: 95% LTV (includes both purchase & improvement amount)
    • 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
  • 3 and 4 units: 90% LTV (includes both purchase & improvement amount).
  • Single or multiple advance options (excluding initial purchase advance) are permitted and may be managed by Lenders. Improvements must be greater than $40,000 or 20% of the purchase price to be eligible for draws managed by Genworth Canada.
  • Lending value is based on the lesser of the improved property value or the sum of the purchase price plus direct costs of the improvements.

Loan Security

  • First and second mortgages

Eligible Properties

  • Maximum 4 units where 1 unit must be owner occupied.
  • 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, for 3 and 4 units, 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 an option, Lenders must obtain either the 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

  • Equity at sale closing includes the equity to close the sale plus additional equity for improvement portion
  • 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 Rate:

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

  • Qualified home buyers may use traditional down payment sources including personal savings, RRSP withdrawal, non-repayable gift from immediate family member(s), sweat equity, existing home equity, proceeds from sale of property.
  • Government grants may be considered if pre-approved by Genworth Canada.

Debt Service Ratios

GDS TDS
39% 44%

Documentation / Information Requirements

  • For a list of eligible improvements please refer to our Genworth Renovation Worksheet. Ineligible improvements would include, but not limited to, any form of personal chattel such as furniture, appliances, electronics or other forms of moveable property.
  • If the proposed improvements exceed 20% of the initial purchase price or $40,000, a full appraisal will be required. Also, details of the proposed renovations including cost estimates and available contracts, or a completed Genworth Renovation Worksheet must be faxed to Genworth Canada.
  • For 3 and 4 unit properties Genworth Canada requires that the lender obtains a general assignment of rents and leases or include this requirement in the standard charge terms.
  • The Lender is responsible for verifying the proposed improvements have been completed via documentation such as, but not limited to: a third-party report from a qualified professional, photos of the indicated improvements that support they have been completed (i.e. before and after photos), or paid invoices. The appropriate documentation should be commensurate with the amount and scope of improvements.

Additional Terms

Genworth Canada will issue a conditional Commitment for Mortgage Insurance based on the LTV of the lending value of the improved property:

  • Coverage issued at the time of closing is for financing related to sale price only.
  • Mortgage insurance coverage will be effective for any Lender-managed advances provided proper confirmation of work completed is documented and on file.
  • For Genworth Canada managed advances we will pay for up to 4 progress advance inspections.
  • If more than 4 advances are required, the customer is responsible for the cost of the additional inspections required.

Eligible Products*

  • Business For Self (Alt-A) Program
  • Borrowed Down Payment Program
  • Family Plan Program
  • Homebuyer 95 Program
  • Investment Property Program
  • New to Canada Program
  • Second Mortgage Program
  • Vacation/Secondary Home Program

Ineligible Products

  • Progress Advance Program