Progress Advance Program
This program lets residential home builders and individual home buyers take advantage of insured progress advances while the property is being built. Insurance is based on the lesser of the market value of the work in place or the cost to complete.
Three programs
Residential Home Builder program: for people who are buying a home through a residential home builder.
Contractor program: for people who either own their own land or buy the land from a general contractor, and then build their home through that one general contractor (more than 50% of the cost to complete is done by one contractor)
Self-Built Program: for people who either own their own land or purchases the land and acts as their own general contractor and hires qualified, licensed trade persons to build their home.
Acceptable loan purpose
Loan-to-value ratio limit
Max Loan Amounts
Eligible properties
Maximum two units. Single-family detached and semi-detached homes. Condominium properties are not eligible.
New construction must conform to the National Building Code and the latest edition of Residential Standards Canada - or the applicable municipal and provincial building codes.
Pre-fabricated homes are eligible for full coverage. Genworth Financial Canada Approved pre-fabricated manufacturers are admissible for specific disbursement methods (as outlined in Appendix A), are eligible to receive a full advance with no holdbacks and may receive payment on delivery of the module(s)
Terms/qualifying interest rates
Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
For terms less than three years, the qualifying interest rate is the greater of three-year posted rate or contract rate.
For terms of three years or more, we use the contract rate is used.
Amortization options
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. |
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* a .20% premium surcharge will be applied to the above premium rates for every 5 years of amortization beyond the traditional 25-year mortgage amortization period |
Residential Home Builder Program and Contractor Program qualification
Builder/contractor must meet general profitability and credit worthiness as per lender's guidelines.
Builder/contractor must be a member of a Genworth Financial Canada approved New Home Warranty Program (NHWP)
Each unit must be registered with a Genworth approved NHWP
Incentive programs, if any, must meet Genworth guidelines
Builders/contractors must be approved by Genworth to benefit from full coverage on all insured progress advances
Borrower qualification
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Existing Genworth requirements related to income, down payment and
credit worthiness apply
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We allow gifted down payments from immediate family members, provided
they are properly verified, non-repayable and all other characteristics
of the borrower are acceptable.
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Government grants may be considered if pre-approved by Genworth
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GDS/TDS Guidelines
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Bureau Score
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GDS
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TDS
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600 +
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35%
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42%
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Borrower documentation requirements to be retained in lender's file (both full and standard service)
Residential Home Builder program: all schedules and plans
Contractor program: all plans and specifications approved by the municipality and a copy of the contract with contractor(s)
Self-Built program: all plans and specifications approved by the municipality, estimates and/or contracts for all aspects of the construction
Borrower documentation requirements (full service only)
Inspection requirements:
Standard service (inspection and disbursement management under the lender's control)
Lender is fully authorized to make interim and final advances in accordance with their institution's internal practices on progress draw mortgages. Advances must not be made for land only
Genworth authorization is not required for any advances or calculations
Lender is responsible for confirming the market value of the home
Full service
Genworth will pay for up to 4 progress advance inspections. If more than 4 advances are required, the customer is responsible for the cost of the additional inspections required
Lender must submit theGenworth Inspection Request Worksheet directly to the assigned Genworth appraiser or to the National Underwriting Centre
The assigned appraiser will inspect the property, determine the percentage complete and inform Genworth
We will calculate the authorized amount and advise lender
Minimum amount for first draw at pre-backfill stage and will include 100% of the land cost less amount of borrower down payment
Eligible Products **
** For specific underwriting guidelines related to the above eligible products, please refer to the applicable product overview
Ineligible Products
Cash-Out Refinance
Family Plan
New to Canada
Purchase Plus
Vacation (Type B)
Second Mortgages
The insurance premium is paid once at the time of closing (except for Progress Advances where the premium is paid in installments during the construction phase with the final installment being paid when the home is completed). The insurance premium is not refundable and may be added onto the mortgage or paid in cash.
Appendix A: Pre-fabricated inspection process
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1st Advance: Land Preparation |
2nd Advance: Module(s)Cost |
Final Advance: Finishing Cost |
Excavation, backfill Water supply (well and septic tank, where applicable) Concrete forms Concrete Crushed stone Foundation damp proofing 100% of the land cost (less the amount of the down payment)
(1st inspection required)
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These disbursements require an inspection to determine the percentage complete Genworth full service will cover up to 4 inspections for each file. Additional inspections must be arranged at the lenders expense
(2nd and 3rd inspections required)
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