This program provides borrowers with the additional flexibility of allowing a Second Mortgage to be registered against their property up to 95% combined LTV on a purchase.

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

  • Purchase transactions: 95% Combined Loan-To-Value (CLTV) based on first & second mortgages
    • 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

Special Conditions

  • The first mortgage must be Genworth Canada insured under any of the following scenarios:
    • Purchase / Purchase Plus applications
    • Combined Loan to Value (CLTV) is > 90%
    • Business for Self (Alt. A) Program applications
  • Under all scenarios, the first mortgage must meet the following conditions:
    • Current at time of second mortgage application with stable repayment history.
    • Second mortgage agreement must contain cross-default clause (default on the first mortgage constitutes default on the second mortgage).
    • In the event of a re-advanceable first mortgage, no amount may be re-advanced until after the second mortgage is paid out.
    • If CLTV > 90%, the first mortgage must be held by the same Lender.

Eligible Properties

  • Maximum 4 units where at least 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 & 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 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 Rate

The premium rate payable will be the lesser of the premium of the combined first and second loan amounts, or the premium of the second mortgage amount only based on the rates below:

LTV Ratio Combined 1st & 2nd Loan Amounts 2nd Mortgage Amount
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%

For submissions of new insured concurrent first and second mortgages the premium payable on each mortgage will be based on the cumulative LTV of the combined first and second loan amounts.

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

  • Minimum credit bureau score of 680 is recommended.

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.

Additional Criteria

  • The mortgage payment to be used on the first mortgage for qualification purposes will be the greater of the actual P+I payment or the calculated P+I payment based on the Bank of Canada qualifying rate.

Debt Service Ratios

GDS TDS
39% 44%

Documentation / Information 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.
  • For 3 & 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.

Portability

  • Genworth Canada mortgage default 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

  • Business For Self (Alt. A) Program
  • Homebuyer 95 Program
  • Purchase Plus Improvements Program
  • Vacation / Secondary Homes Program (Type A Properties)

Ineligible Products

  • Borrowed Down Payment Program
  • New to Canada Program
  • Progress Advance Program
  • Vacation / Secondary Homes Program (Type B Properties)
  • Investment Program
  • Family Plan Program