New to Canada
New to Canada Genworth Mortgage Options
Now qualified homebuyers who have immigrated or relocated to Canada can qualify for Genworth default mortgage insurance with as little as a 5% down payment
Acceptable loan purpose
- Purchase transactions
- Purchase plus improvements
Eligible properties
- Maximum two units where at least one unit must be occupied as the principal residence
- New construction or existing properties
Loan-to-value ratio limits
'Loan-to-value' (LTV) is the relationship between the principal balance of a mortgage and the property value. For example, if you have a house valued at $100,000 with a $90,000 loan, you have a 90% LTV ($90,000 divided by $100,000 = 90%).
- Maximum LTV ratio - 95.00%
Pricing
-
Current underwriting fees apply
Full Service:(Genworth Financial's Excel and paper) $ 165
New Construction applications $ 75
Genworth, Lender and Mortgage Broker Staff applications $ 0
- Premium rates
| LTV ratio |
Premium rate |
| Up to 65% |
0.50% |
| 65.01% - 75% |
0.65% |
| 75.01% - 80% |
1.00% |
| 80.01% - 85% |
1.75% |
| 85.01% - 90% |
2.00% |
| 90.01% - 95% |
2.75% |
| Premium is non-refundable. |
Borrower qualification
- Maximum GDS/TDS: 32% (incl. heat) / 40%
- Must have immigrated or relocated to Canada within the last 24 months
- 3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
- Must have a valid work visa or obtained landed immigrant status
- 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)
- Maximum debt servicing ratios of 35/42.
Terms/qualifying interest rates
- Six months up to 25 years
- Fixed Rate, ARM, and VRM
- For terms less than 3 years, the qualifying interest rate is the greater of three-year posted rate or contract rate; for terms of three years or more, the contract rate is used
Documentation Requirements
- Work Visa or verification of landed immigrant status, and:
-
Depending on the loan-to-value you will be required to submit the following;
- 95% LTV: An international credit bureau
- 90% LTV: Either a letter of reference from a recognized financial institution, or Six (6) months of bank statements confirming satisfactory account operation with no NSF's
- 85% LTV: If Guarantor on file, only the work visa or verification of landed immigrant status is required to be sent to Genworth, otherwise document requirements are the same as 90 percent LTV
Credit and Down Payment Guidelines
| Loan-To-Value |
Max LTV= 95% |
Max LTV= 90% |
Max LTV= 85% |
| Credit Requirements |
International credit report demonstrating a strong credit profile |
Letter of reference from a recognized financial institution or Six (6) months of bank statements from primary account |
If no credit references available, a Canadian family guarantor with a strong credit profile required |
| Down Payment |
5% from own resources |
10% from own resources
5% can come from a corporate relocation subsidy |
15% from own resources
Up to 10% can be a gift from the non-occupying guarantor |
Note: This program is not available to Diplomats or any other foreign political appointed individuals who do not pay income tax in Canada.
The insurance premium is payable once at the time of closing (except for Progress Advances where the premium is paid in installments during the construction phase with a final installment paid when the home is completed). The insurance premium is not refundable and may be added onto the mortgage or paid in cash.
