Here is how the Borrowed Down Payment Mortgage Works

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

• Purchase transactions: 90.01% – 95% LTV

Eligible Properties:

• Maximum 2 units where 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.

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:

• LTV > 80%: 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).

Note: The insurance premium is non-refundable, paid at the time of closing and may be added onto the mortgage

Borrower Qualification:

• Down payment options can include:If the downpayment is borrowed, repayments must be included in the TDS calculation
  • Lender cash back incentives
  • Borrowed sources that are arm’s length to the purchase or sale transaction such as personal loans, lines of credit or credit cards
  • Gifts from non-immediate family members (an immediate family member is defined as a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependant)
• A minimum credit bureau score of 650 is recommended at 90.01-95% LTV. We will adjudicate all deals using Genworth Financial Canada’s proprietary scoring model
• Non-residing co-borrowers are acceptable (must be an immediate family member and on title)
• Non-residing guarantors are not permitted
• Lender to ensure that borrower demonstrates the ability to cover closing costs of at least 1.5% of the purchase price (0.5% in Alberta). These funds may be borrowed provided any associated repayments are included in the TDS calculation based on a 12-month repayment period.
• Existing requirements related to income, down payment and credit worthiness apply

GDS/TDS Guidelines

• 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 buyers can take advantage of a lender’s portability plan. Refer to Portability Feature Product Overview for further details.

Assumptions / Assignments:

• Mortgage is assumable subject to meeting lender guidelines

Eligible Products*:

• Homebuyer 95 Program
• Progress Advance Program
• Purchase Plus Improvement Program
• Vacation/Secondary Homes Program (Type A Properties)

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

Ineligible Products:

• Business for Self (Alt A) Program
• Cash-Out Refinance Program
• Family Plan Program
• New To Canada Program
• Vacation/Secondary Homes Program (Type B Properties)