New To Canada ™
Program

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

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.

Loan Security

• First 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

*For new construction properties in the territories (Yukon, Northwest and Nunavut Territories) where New Home Warranty is not an option, Lenders must obtain either the 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

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:

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

Borrower Qualification

Income and Employment

• Standard income and employment verification requirements apply.
• 3 months minimum full-time employment in Canada (borrowers being transferred under a corporate relocation program are exempt).

Credit

• 90.01-95%:
  International credit report (Equifax or Transunion) demonstrating a strong credit profile
  
  

  OR

  Two (2) alternative sources of credit demonstrating timely payments (no arrears) for the past 12 months. The two alternative sources required are:
  • Rental payment history
  • One other alternative source (hydro/utilities, telephone, cable, cell phone and auto insurance).
• Up to 90%:
  Letter of reference from a recognized financial institution OR six (6) months of bank statements from primary account

Down Payment:

• 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;subject to the loan to value outlined below:
• 95% LTV, 5% of the down payment must be from own resources.
• < 95% LTV, the remainder may be gifted from an immediate family member or from a corporate subsidy.

Additional Criteria:

• Must have immigrated or relocated to Canada within the last 60 months.
• Must have a valid work permit or obtained permanent residency.
• All debts held outside of the country must be included in the total debt servicing ratio (Rental income earned outside of Canada is to be excluded from the GDS / TDS calculation).
• Guarantors are not permitted.
• Foreign Diplomats or any other foreign politically appointed individuals who do not pay income tax in Canada are ineligible for this program.
• Clergy assigned to specific church requires only a visitor record.
• A down payment grant provided under a Genworth Canada approved Affordable Housing Program may be used as down payment at 95% LTV (the borrower is not required to have 5% down payment from own resources).

Debt Service Ratios

Documentation / Information Requirements*

* Genworth Canada may request that the Lender provide a copy of the documentation on a case-by-case basis.

** Letter from landlord must indicate the following: name of tenant, monthly rent, length of tenancy, payment history. Bank statements must support the amount of rent and timeliness of payments outlined in the letter.

Portability

• 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*

• Homebuyer 95 Program
• Progress Advance Program
• Purchase Plus Improvements Program

Ineligible Products

• Business for Self (Alt. A) Program
• Borrowed Down Payment Program
• Family Plan Program
• Vacation / Secondary Homes Program
• Investment Property Program
• Second Mortgage Program
• Self-Directed RRSP Program