Self-Directed
RRSP

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

Purchase transactions:

• 95% LTV max 2units
  • 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.
  • 90% LTV max 4units

Loan Security

• First and second mortgages

Eligible Properties

• Maximum 4 units where at least 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.
• In addition, for 3 & 4 units, the property must meet the following criteria:
  • Municipal zoning
  • Fully self-contained units

* For new construction properties in the territories (Yukon, Northwest and Nunavut Territories) where New Home Warranty is not available, Lenders must obtain either an 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.
• In the event a self-directed mortgage goes to claim, the maximum interest rate paid on the balance owing will be the lesser of the contract rate or the 5-year benchmark rate as determined weekly by the Bank of Canada.

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 & Employment:

• Standard income and employment verification requirements apply.
  

Credit:

• >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.

Down Payment:

• 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.
• Government grants may be considered if pre-approved by Genworth Canada.

Additional Criteria:

• The holder of the RRSP and the borrower must be the same person (or be the spouse of the borrower).

Debt Service Ratios

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.
• For 3 and 4 unit properties Genworth Canada requires that the Lender obtains a General Assignment of Rents and Leases or include this requirement in the Standard Charge Terms.

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

• Second Mortgage Program
• Borrowed Down Payment Program
• Business for Self (Alt. A) Program
• Homebuyer 95 Program
• Family Plan Program
• Progress Advance Program
• Purchase Plus Improvement Program
• Vacation / Secondary Homes Program (Type A Properties)
• Investment Property Program

Ineligible Products

• New to Canada Program
• Vacation / Secondary Homes Program (Type B Properties)