The Vacation / Secondary Home Program allows borrowers to purchase a second home with an affordable monthly payment with 5% down payment.

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

Purchase Transactions:

Secondary Homes (Type A)

  • 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

Vacation Homes (Type B)

  • 90% LTV

Loan Security

Secondary Homes (Type A)

  • First and Second mortgages

Vacation Homes (Type B)

  • First Mortgages

Eligible Properties

Secondary Homes (Type A)

  • Maximum 1 unit
    • Property must be owner occupied or occupied by an immediate family member
  • 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

Vacation Homes (Type B)

  • Property characteristics same as Type A properties except for the following;
    • Property need not be winterized
    • Seasonal access permitted (road not plowed during winter)

Ineligible Properties (For both Type A and Type B homes)

  • Investment properties
  • Rental pool / Timeshare properties

* 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.

Maximum Loan Amounts

Secondary Homes (Type A)

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

Vacation Homes (Type B)

  • $350,000 (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.
  • 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:

LTV Ratio Type A properties Type B properties
Premium Rate Top-Up Premium Premium Rate Top-Up Premium
Up to 65% 0.60% 0.60% 1.45% 2.90%
65.01% - 75% 1.70% 5.90% 2.55% 6.10%
75.01% - 80% 2.40% 6.05% 3.15% 6.40%
80.01% - 85% 2.80% 6.20% 3.50% 7.00%
85.01% - 90% 3.10% 6.25% 4.35% 7.60%
90.01% - 95% 4.00% 6.30% N/A N/A

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

  • No prior bankruptcy or judgements
  • No R3’s in the last 24 months

Type A properties

  • >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.

Type B Properties

  • Minimum credit bureau score of 680 is required for all applicants.
  • Please note that on a case-by-case basis, Genworth Canada will review instances where the primary applicant meets the minimum credit score, but a second applicant has not credit at all.

Down Payment:

    Type A Properties

  • 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.
  • Type B Properties

  • Must be from own resources and may include personal savings, RRSP withdrawal, existing home equity, proceeds from sale of property.

Additional Criteria

  • Maximum of one Genworth Canada insured vacation property per applicant.
  • No 3rd party guarantors for qualification purposes. Spousal guarantors are permitted.
  • An immediate family member is defined as a father, mother, child, brother, sister, grandparent, legal guardian, or legal dependent.

Debt Service Ratios

GDS TDS
39% 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.

Property Type Requirements:

Secondary Homes (Type A)

  • Foundation must be permanent and installed beyond the frost line. This includes concrete / concrete block or preserved wood foundations, or post/pier foundations on solid bedrock.
  • Must be zoned and used as residential, rural or seasonal. Mixed uses or rental Pooling is not accepted.
  • Freehold or condominium title. Co-ops or interest ownership is not accepted.
  • At minimum, property must have a kitchen, 3-piece bathroom, bedroom, and common area.
  • Remaining economic life must be 25 years.
  • Year-round road access on reasonable quality public roads, serviced by the local municipality. Privately serviced roads are allowed, provided there is a maintenance contract in place.
  • Property must be winterized with a permanent heat source. For example, heating can be baseboard, forced air, water radiator, radiant, coal, propane, geothermal heat pumps, or heat pumps.
  • Good quality construction with no signs of deferred maintenance.
  • Water source: well, municipal serviced, and cistern. Water source must be drinkable. We accept lake or river water, provided the property has its own filtration system. For example, a reverse osmosis system.
  • Property must have electrical power. Alternative energy sources may be considered on a case-by-case basis such as solar power, wind energy & generators.
  • There must be good market appeal in the area with no adverse influences/neighbourhood nuisances

Vacation Homes (Type B):

All Type A property requirements apply to Type B, except for the following:

  • No permanent heat source is required. For example, a wood stove, fireplace, stove or heat blower is acceptable.
  • Foundation may be floating. For example, sitting on blocks.
  • Seasonal road use is acceptable. This means the road does not have to be plowed during the winter.
  • Water source needn’t be drinkable. However, there must be running water in the home.
  • Property may be accessible only by boat.
  • Holding tanks may be considered provided it is common for the immediate area and meets all municipal / provincial requirements (e.g., CSA approved holding tank).

Portability

  • Genworth Canada 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.
  • When porting from an existing standard Genworth Canada insured loan to a Vacation (Type B) loan, the premium will be the lesser of:
    • The outstanding mortgage balance multiplied by 1.10% + the top-up amount multiplied by the top-up premium rate, or
    • The new loan amount multiplied by the full premium rate. 

Assumptions / Assignments

  • Mortgage is assumable subject to meeting lender guidelines

Eligible Products

Secondary Home (Type A)

  • Borrowed Down Payment Program\
  • Homebuyer 95 Program (Maximum 1 unit)
  • Progress Advance Program (Residential Home Builder, Contractor and Self-Build Programs)
  • Purchase Plus Improvements Program
  • Second Mortgage Program

Vacation Home (Type B)

  • Purchase Plus Improvements Program

Ineligible Products

Secondary Home (Type A)

  • Business for Self (Alt. A) Program
  • Family Plan Program
  • New to Canada Program
  • Investment Property Program
  • Second Mortgage Program

Vacation Home (Type B)

  • Homebuyer 95 Program
  • Business for Self (Alt. A) Program
  • Borrowed Down Payment Program
  • Family Plan Program
  • New to Canada Program
  • Progress Advance Program
  • Investment Property Program
  • Second Mortgage Program