This program is designed for self-employed borrowers who are unable to provide traditional income verification but have a proven 2-year history of managing their credit and finances responsibly. Eligible borrowers typically own a small size business for a minimum of two years, which can be confirmed via a third-party arm’s length document. In addition, the borrower is required to declare their annual income and annual business revenue, which should be reasonable based on the industry, length of operation and type of business.

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

  • Purchase transactions: 90% LTV 1 & 2 units
  • Refinance transactions: 80% LTV 1 & 2 units

Loan Security:

  • First and second mortgages

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

Maximum Property Value:

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

Maximum Loan Amounts:

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

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
  • 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.

Equity Removal Limits:

  • 75.01-80% LTV: Maximum $100,000
  • LTV ≤ 75%: Maximum $200,000

Amortization Options:

  • Purchase transactions:
    • LTV > 80%: Up to 25 years
    • LTV ≤ 80%: Up to 40 years
  • Refinance transactions:
    • LTV ≤ 80%: Up to 30 years

Premium Rates:

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 Rate
Up to 65% 0.90% 1.75%
65.01% - 75% 1.15% 3.00%
75.01% - 80% 1.90% 4.45%
80.01% - 85% 3.35% 6.35%
85.01% - 90% 5.45% 8.05%
90.01% - 95% N/A N/A

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

  • Minimum of two (2) years business-for-self tenure
  • The self-employed borrowers stated income should be reasonable based on the length of operation, type and size of the business, and should be able to service the required mortgage as per the GDS/TDS guidelines
  • Reasonableness of the stated income should also be reflective of the personal financial profile of the borrower
  • Lender to provide the line 150 from the borrower(s) most recent years’ Notice of Assessment (NOA)

Credit

  • Minimum 2 trade lines with at least two (2) years history
  • No mortgage, installment or revolving credit delinquencies appearing on the credit bureau in the past 12 months
  • No reported defaults on residential mortgages for the past 7 years
  • No previous bankruptcy

Purchase transactions

  • > 80% LTV Minimum credit bureau score of 650 is recommended
  • 60.01 – 80% LTV Minimum credit bureau score of 620 is recommended
  • ≤ 60% LTV Minimum credit bureau score of 600 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 judgements
  • No R3's in the past 24 months

Down Payment

  • ≤ 90% LTV Minimum 5% of the down payment from the borrowers own savings. The remainder may be gifted from an immediate family member.
  • Qualified home buyers may use traditional down payment sources including personal savings, non-repayable gift from immediate family member(s), proceeds from sale of property.

Additional Criteria

  • Borrowers with commission income are ineligible
  • Lender to ensure borrower(s) have no tax arrears
  • All applicants used to qualify must occupy the property (If two unit property, one unit must be owner occupied)
  • Spousal guarantors acceptable
  • Borrowers are permitted one (1) Genworth Canada insured Business for Self Program mortgage

Business Information Requirements:

Lender to provide the following information in the notepad to establish the type and size of the business, and help substantiate the reasonability of the borrowers stated income

  • Industry type/profession of the borrowers business
  • Business type (sole proprietor, partnership or incorporated and percentage ownership)
  • Borrower(s) to provide stated annual gross business revenue

GDS/TDS Guidelines:

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

Documentation Requirements:

Sole Proprietorship

  • A one-owner operation where the owner directs all the activities of the business, assumes all authorities and obligations, and is liable for its business debts. The sole proprietor income is reported to revenue Canada on the standard tax return (T1 General) together with Revenue Canada's required statement of business or professional activities.
  • Documentation requirements - Any one of the following must confirm at least two (2) years business-for-self tenure:
    • Business License
    • GST/HST Return Summary
    • T1 Generals with statement of business activities attached for a minimum 2 years prepared by an arm's length third-party
    • Audited Financial Statements for the last 2 years, prepared and signed by a CA
  • Plus the most recent years’ Notice of Assessment from the borrower(s) to confirm the line 150 amount and no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA's will be required)

Partnerships

  • Partnerships are businesses owned by two or more individuals who share the profits or losses of the business operation. The partnership income is reported to Revenue Canada on the standard tax report (T1 General) together with Revenue Canada's required statement of business or professional activities, which reflects the percentage of the NET income or loss for each partner of the enterprise.
  • Documentation requirements - Any one of the following must confirm at least two (2) years business-for-self tenure:
    • Business License
    • GST/HST Return Summary
    • T1 Generals with statement of business activities attached for a minimum 2 years prepared by an arm's length third-party
    • Audited Financial Statements for the last 2 years, prepared and signed by a CA
  • Plus the most recent years’ Notice of Assessment from  the borrower(s) to confirm the line 150 amount and no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA's will be required)

Corporations

  • A limited company or corporation is a legal entity, separate from the persons (all shareholders) who own it. The business can own assets, enter into contracts and conduct business transactions in its own capacity. The company is called limited because the liability of the shareholders is limited to their investment. All provincial Corporations must obtain articles of incorporation from the province in which they are registered or may be federally incorporated. The applicant's personal income will be reported by T4 from the corporation.
  • Documentation requirements - Any one of the following must confirm at least two (2) years business-for-self tenure:
    • Articles of incorporation
    • Audited Financial Statements for the last 2 years, prepared and signed by a CA
  • Plus the most recent years’ Notice of Assessment from  the borrower(s) to confirm the line 150 amount and no income tax arrears (Note: in the province of Quebec, both federal and provincial NOA's will be required)

Portability:

Mortgage default insurance is portable under this program

  1. When porting from an ALT. A to another ALT. A mortgage, the premium will be the lesser of:
    • The increase in the loan amount multiplied by the top-up premium rates defined in the table above, or
    • The new loan amount multiplied by the full premium rate
  2. When porting from an ALT. A loan to an existing standard Genworth Canada insured loan, the premium will be the lesser of:
    • The increase in the loan amount multiplied by our standard premium top-up rates as described in our Portability feature Product Overview, or
    • The new loan amount multiplied by the full standard premium rate
  3. When porting from an existing standard Genworth Canada insured loan to an ALT. A loan, the premium will be the lesser of:
    • The outstanding mortgage balance multiplied by 1.75% + the top-up amount multiplied by the top-up premium rate, or
    • The new loan amount multiplied by the full premium rate

Example for Scenario #3:
Outstanding mortgage balance = $100,000
Top-up mortgage amount = $80,000
New Loan Amount = $180,000 (90% LTV)

($100,000 x 1.75%) + ($80,000 x 8.05%) = $8,190
($180,000 x 5.45%) = $9,810

Premium Payable is $8,190

When porting with a top-up mortgage amount, the blended amortization option is available

Assumptions/Assignments:

  • Mortgage is assumable subject to meeting lender guidelines.

Eligible Products:

  • Cashout Refinance Program
  • Progress Advance Program
  • Purchase Plus Improvement Program
  • Second Mortgage Program

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

Ineligible Products:

  • Borrowed Down Payment Program
  • Family Plan Program
  • New to Canada Program
  • Investment Property Program
  • Vacation/Secondary Homes Program

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