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.

Note: To ensure eligibility for this program, please refer to the corresponding lender updates below addressing recent changes to the mortgage insurance guidelines:

Loans > 80% LTV - Subject: High-Ratio Mortgage Insurance Changes

Loans ≤ 80% LTV - Subject: Low-Ratio Mortgage Insurance Changes

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

Secondary Homes (Type A):

  • Purchase transactions: 95% LTV
    • 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

Vacation Homes (Type B):

  • Purchase transactions: 90% LTV

Loan Security:

Secondary Homes (Type A):

  • First and second mortgages

Vacation Homes (Type B):

  • First mortgages

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;
    • Property need not be winterized
    • Seasonal access permitted (road not plowed during winter)

Ineligible properties

  • Investment properties
  • Rental pool / timeshare properties

Maximum Property Value:

  • Property value must be less than $1,000,000

Maximum Loan Amounts:

Secondary Homes (Type A)

  • Metro Toronto, Metro Calgary & Metro Vancouver: $750,000
  • Rest of Canada: $600,000

Vacation Homes (Type B)

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

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 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 Type A properties Type B properties
Premium Rate Top-Up Premium Premium Rate Top-Up Premium
Up to 65% 0.60% 0.60% 1.45% 2.90%
65.01% - 75% 1.70% 5.90% 2.55% 6.10%
75.01% - 80% 2.40% 6.05% 3.15% 6.40%
80.01% - 85% 2.80% 6.20% 3.50% 7.00%
85.01% - 90% 3.10% 6.25% 4.35% 7.60%
90.01% - 95% 4.00% 6.30% N/A N/A

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 Requirements

  • No prior bankruptcy or judgements
  • No R3's in the last 24 months
  • Type A properties

    • >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 

    Type B Properties

    • Minimum credit bureau score of 680 is required for all applicants
    • 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.

Down Payment

    Type A Properties

  • 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.
  • Type B Properties

  • Must be from own resources and may include personal savings, RRSP withdrawal, existing home equity, proceeds from sale of property.

Additional Criteria

  • 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

Debt Service Ratios:

  • GDS 39% / TDS 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

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.
  • When porting from an existing standard Genworth Canada insured loan to an Vacation (Type B) loan, the premium will be the lesser of:
    • The outstanding mortgage balance multiplied by 1.10% + the top-up amount multiplied by the top-up premium rate, or
    • The new loan amount multiplied by the full premium rate

Assumptions / Assignments:

  • Mortgage is assumable subject to meeting lender guidelines

Eligible Products:

Secondary Home (Type A)

  • Borrowed Down Payment Program
  • Homebuyer 95 Program
  • Progress Advance Program
  • Purchase Plus Improvements Program
  • Second Mortgage Program

Vacation Home (Type B)

  • Purchase Plus Improvements Program

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

Ineligible Products:

Secondary Home (Type A)

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

Vacation Home (Type B)

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

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