Self-Directed
RRSP

Acceptable Loan Purpose & 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
• Purchase transactions: 90% LTV max 4units

Loan Security:

• First and second mortgages

Eligible Properties:

• Maximum 4 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
• In addition, for 3 & 4 units, the property must meet the following criteria:
  • Municipal zoning
  • Fully self-contained units
  • Must be located in a major centre with a viable investor market

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:

Note: The 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

Additional Criteria

For 3 & 4 Units, the additional guidelines apply:

• Borrowers must have clean credit, stable employment/income, down payment from own resources, positive net worth and liquid assets to cover 3 months payments

• If the down payment is a gift, we require an acceptable guarantor. A guarantor is also needed if there are significant variations from the qualification guidelines.

Debt Service Ratios:

• GDS 39% / TDS 44%

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 & 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:

• Our mortgage default 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

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

Ineligible Products:

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