At Genworth Canada, we know that for many Canadian families their first home is not their last home.

We are pleased to have introduced the concept of portable mortgage default insurance to Canadians. Most lenders have a portability feature, which allows you to transfer your original mortgage to a new property, preserving a low interest rate and saving the cost of setting up a new mortgage. If you decide to port your mortgage to a new home and your mortgage is insured by Genworth Canada, you will be able to port the mortgage default insurance as well. This will allow you to save on future insurance premiums.

Now, borrowers with a Genworth-insured mortgage can save on the costs associated with a new mortgage by taking advantage of their lender's mortgage portability plan and "port" the mortgage default insurance.

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:

  • 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

Time Period:

  • Insurance may be ported to a new property for up to a maximum or six (6) months after the closing date of the currently insured mortgaged property.

Amortization Options:

  1. Straight port: amortization of the new loan cannot exceed that remaining on the original loan
  2. Port/Top-Up with increased loan amount or increased LTV ratio: Maximum amortization will be the greater of using the following blended amortization formula:

A. Blended Amortization

(Outstanding Balance x Remaining Amortization) + (New Funds x New Amortization) ÷ Outstanding Balance + New Funds

B. Lapsed Time Calculation

Amortization on new mortgage - Amortization elapsed on the original mortgage

Premium Rate:

  1. Straight port: no new premium is payable
  2. The premium to be paid is the lesser of:
    • Full Premium Calculation: Full Premium Rate on Total Loan Amount less applicable Premium Credit
    • Top-Up Premium Calculation: Top-Up Premium Rate on New Funds
LTV Ratio Premium Rate Top-Up Premium
Up to 65% 0.60% 0.60%
65.01% - 75% 0.75% 2.60%
75.01% - 80% 1.25% 3.15%
80.01% - 85% 1.80% 4.00%
85.01% - 90% 2.40% 4.90%
90.01% - 95% 3.60% 5.65%

For specialty products, please refer to the applicable Product Overview for premium rates

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

Borrower Qualification:

Premium Credit

  • Applicable for purchase applications where full premium was paid on the original mortgage
  • Premium credit will be applied to the full premium on the new mortgage as per the table below:
From original closing date Of original premium paid
Within 6 months 100%
Within 12 months 50%
Within 24 months 25%

*Genworth's mortgage default insurance continues to be portable beyond two(2) years; however, the premium credit will not apply

Borrower Qualification

  • Original mortgage must have been insured by Genworth Canada and be up to date
  • Borrower reassessment is required. Existing requirements related to income, down payment and credit worthiness apply
  • Where more than one borrower is involved, at least one of the borrowers must have been identified on the original application as a mortgagor and remain on title
  • Complete borrower requalification is required when the borrower increases the loan amount or the LTV ratio

Documentation / Information Requirements:

  1. Straight port: offer to purchase
  2. Port with increased loan amount and/or LTV ratio: standard documentation requirements apply

Expert knowledge, resources and tools, right to your inbox!

Homeownership.ca newsletter is the indispensable tool for your homebuying journey.

Sign Up Now!