Canadian tax regulations allow self-directed Registered Retirement Savings Plans (RRSP)/ Registered Retirement Income Funds (RRIF) to be used for a non-arms length mortgage investment, provided that the mortgage is insured. We are delighted to offer this program to meet this opportunity.

Acceptable Loan Purpose & Applicable Loan-to-Value Limits:

  • Purchase transactions: 95% LTV max 2units
    • 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
    • Note: All mortgage insurance applications received between December 11, 2015 and February 14, 2016 where the closing date is after July 1, 2016; or received on or after February 15, 2016, the above minimum down payment guidelines will apply.

  • Purchase transactions: 90% LTV max 4units
  • Refinance transactions: 80% LTV max 4 units

Loan Security:

  • First and second mortgages

Eligible Properties:

  • Maximum 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, for 3 & 4 units, the property must meet the following criteria:
    • Municipal zoning
    • Fully self-contained units
    • Estimated remaining economic life of the property should be a minimum of 25 years.
    • Must be located in a major centre with a viable investor market

Maximum Property Value:

  • Property value must be less than $1,000,000. Exceptions may be considered for LTV ≤ 80%.

Qualifying Terms and Interest Rates:

  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
  • Maximum interest rate term of 25 years
  • LTV >80%
    • For mortgages with fixed rate terms greater than or equal to 5 years, the contract rate is used.
    • For mortgages with fixed rate terms less than 5 years and all variable rates regardless of term, the qualifying interest rate is the greater of the contract rate or 5-year benchmark rate.
  • LTV ≤ 80%
    • For mortgages with fixed rate terms greater than or equal to 3 years, the contract rate is used.
    • For mortgages with fixed rate terms less than 3 years and all variable rates regardless of term, the qualifying interest rate is the greater of the contract rate or 3-year posted rate.
  • In the event a self-directed mortgage goes to claim, the maximum interest rate paid on the balance owing will be the lesser of the contract rate or the 5-year benchmark rate as determined weekly by the Bank of Canada.

Amortization Options:

  • LTV > 80%: Up to 25 years
  • LTV ≤ 80%: Up to 40 years

Premium Rate:

The premium payable will be the premium as a % of the total loan amount based on the rates below:

LTV Ratio Premium Rate
Up to 65% 0.60%
65.01% - 75% 0.75%
75.01% - 80% 1.25%
80.01% - 85% 1.80%
85.01% - 90% 2.40%
90.01% - 95% 3.60%

LTV ≤ 80% - A .25% premium surcharge will be applied for every 5 years of amortization beyond the traditional 25-year mortgage amortization period

Note: The 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

Purchase transactions:

  • >80% LTV Minimum credit bureau score of 600 is recommended
  • 60.01 – 80% LTV Minimum credit bureau score of 580 is required
  • ≤ 60% LTV Minimum credit bureau score of 580 is recommended

Refinance transactions:

  • ≤ 80% LTV Minimum credit bureau score of 650 (min avg. for all borrowers) will be required for all refinance loans
  • No prior bankruptcy or judgements
  • No R3's in the past 24 months

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

Additional Criteria

For 3 & 4 Units, the additional guidelines apply:

  • Borrowers must have clean credit, stable employment/income, down payment from own resources, positive net worth and liquid assets to cover 3 months payments
  • If the down payment is a gift, we require an acceptable guarantor. A guarantor is also needed if there are significant variations from the qualification guidelines.

GDS/TDS Guideline:

Credit Score GDS* TDS*
<680 35% 42%
680+ 39% 44%

*Exceptions may be considered for LTV ≤ 80%

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

Portability:

  • Our 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*:

  • Cash out Refinance Program
  • Second Mortgage Program
  • Borrowed Down Payment Program
  • Business for Self (Alt-A) Program
  • Homebuyer 95 Program
  • Family Plan Program
  • Progress Advance Program
  • Purchase Plus Improvement Program
  • Vacation/Secondary Homes Program (Type A Properties)
  • Investment Property Program

* For specific underwriting guidelines related to the above eligible products, please refer to the applicable product overview

Ineligible Products:

  • New To Canada Program
  • Vacation/Secondary Homes Program (Type B Properties)

Advisory: Fort McMurray

Genworth Canada expresses concern for the residents of Fort McMurray, Alberta and is working with our customers to provide assistance to Genworth-insured homeowners impacted by the current wildfires.

Learn More