At Genworth Canada, we know that today's busy lifestyle requires more home ownership options - whether it's a second home in the city to reduce that weekly commute, or a cottage at the lake for weekend getaways. With our Vacation/Secondary Homes Program, Canadians can now purchase a second home with an affordable monthly payment with 5% down payment.

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

Secondary Homes (Type A):

  • Purchase transactions: 95% LTV
  • Refinance transactions: 80% LTV

Vacation Homes (Type B):

  • Purchase transactions: 90% LTV

Eligible Properties:

Secondary Homes (Type A):

  • Maximum 1 unit
    • Property must be owner occupied or occupied by an immediate family member
  • 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

Vacation Homes (Type B):

  • Property characteristics same as Type A properties except for the following;
  • Maximum 1 unit
  • Property need not be winterized
  • Seasonal access permitted (road not plowed during winter)

Ineligible properties

  • Investment properties
  • Rental pool / timeshare properties

Maximum Property Value:

  • Type A (Purchase) LTV > 80%: Less than $1,000,000
  • Type B (Purchase) LTV > 80%: Less than $1,000,000

Maximum Loan Amounts:

Secondary Homes (Type A)

  • Metro Toronto, Metro Calgary & Metro Vancouver: $700,000
  • Rest of Canada: $600,000

Vacation Homes (Type B)

  • $350,000 (exceptions will be considered on a case by case basis)

Terms / Qualifying Interest Rate:

  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
  • For loans with fixed rate terms greater than or equal to 5 years, the contract rate is used
  • For loans with fixed or variable rate terms less than 5 years, the qualifying interest rate is the greater of the contract rate or 5-yr benchmark rate

Amortization Options:

Type A

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

Type B

  • 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
  • If porting the insurance premium from a Type A property to a Type B property, the difference in premium is 0.85%. This difference is charged on the mortgage balance being ported, in addition to the top-up premium on the additional loan amount.
LTV Ratio Type A properties Type B properties
Premium Rate Top-up Rate Premium Rate Top-up Rate
Up to 65% 0.60% 0.60% 1.45% 1.45%
65.01% - 75% 0.75% 2.60% 1.60% 3.45%
75.01% - 80% 1.25% 3.15% 2.00% 4.00%
80.01% - 85% 1.80% 4.00% 2.90% 4.90%
85.01% - 90% 2.40% 4.90% 3.15% 5.75%
90.01% - 95% 3.15% 4.90% N/A N/A

LTV ≤ 80% (Type A properties) - 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:

  • We require a minimum credit bureau score of 650 on all applicants for Vacation (Type B) properties. We calculate the score using our internal Genworth Canada proprietary scoring model, which uses credit scores from both bureaus. Please note that on a case-by-case basis, we are prepared to review instances where the primary applicant meets the minimum credit score but a second applicant has no credit at all.
  • No prior bankruptcy or judgements
  • No R3's in the last 24 months
  • Gifted down payments from immediate family members are acceptable for Secondary (Type A) properties. For Vacation (Type B) properties, down payment funds must be from own resources
  • Maximum of one Genworth-insured vacation property per applicant
  • No 3rd party guarantors for qualification purposes. We do accept spousal guarantors.
  • An immediate family member is defined as a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependent

GDS/TDS Guidelines:

  • LTV > 80%:
Credit Score GDS TDS
<680 35% 42%
680+ 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

Property Type Requirements:

Secondary Homes (Type A):

  • Foundation must be permanent and installed beyond the frost line. This includes concrete/concrete block or preserved wood foundations certified by a professional engineer or post/pier foundations on solid bedrock.
  • Must be zoned and used as residential, rural or seasonal. We do not accept mixed uses or rental pooling.
  • Freehold or condominium title. We do not accept co-ops or ¼ interest ownership.
  • At minimum, property must have a kitchen, 3-piece bathroom, bedroom, and common area
  • Remaining economic life must be 25 years
  • Year-round road access on reasonable quality public roads, serviced by the local municipality. We also allow privately serviced roads, provided there is a maintenance contract in place.
  • Property must be winterized with a permanent heat source. For example, heating can be baseboard, forced air, water radiator, radiant, coal, propane, geothermal heat pumps, or heat pumps.
  • Good quality construction with no signs of deferred maintenance
  • Water source: well, municipal serviced, and cistern. Water source must be drinkable. We accept lake or river water, provided the property has its own filtration system. For example, a reverse osmosis system.
  • There must be good market appeal in the area with no adverse influences/neighbourhood nuisances

Vacation Homes (Type B):

All Type A property requirements apply to Type B, except for the following:

  • No permanent heat source is required. For example, a wood stove, fireplace, stove or heat blower is acceptable.
  • Foundation may be floating. For example, sitting on blocks.
  • Seasonal road use is acceptable. This means the road does not have to be plowed during the winter.
  • Water source needn't be drinkable. However, there must be running water in the home.
  • Boat access only accepted


  • 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:

Secondary Home (Type A)

  • Cashback Equity Program
  • Cash-Out Refinance Program
  • Homebuyer 95 Program
  • Progress Advance Program
  • Purchase Plus Improvements Program

Vacation Home (Type B)

  • Purchase Plus Improvements Program

Ineligible Products:

Secondary Home (Type A)

  • Business For Self (Alt-A) Program
  • Family Plan Program
  • New to Canada Program

Vacation Home (Type B)

  • Homebuyer 95 Program
  • Business For Self (Alt-A) Program
  • Cash-Out Refinance Program
  • Cashback Equity Program
  • Family Plan Program
  • New to Canada Program

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