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.

Acceptable Loan Purpose and 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.
    • 90% LTV max 4units

Loan Security

  • First and second mortgages

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.
  • 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

  • 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 & Employment:

  • Standard income and employment verification requirements apply.


  • >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.

Additional Criteria:

  • The holder of the RRSP and the borrower must be the same person (or be the spouse of the borrower).

Debt Service Ratios

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 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.


  • 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

  • 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

Ineligible Products

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