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Second Mortgage Program

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Genworth will now be providing mortgage insurance up to 95% LTV for purchase and 85% for refinance, to qualified homebuyers allowing second mortgages to be registered against the property.

Acceptable loan purpose

  • Purchase
  • Purchase Plus Improvements
  • Refinance

Combined Loan-To-Value (CLTV) Ratio Limits

  • Purchase: Max 95% CLTV (based on combined 1st and 2nd mortgage balances)
  • Refinance: Max 85% CLTV (based on combined 1st and 2nd mortgage balances)

Special Conditions

  • The 1st mortgage must be Genworth-insured under any of the following scenarios:
    • Purchase/Purchase Plus applications
    • Combined Loan to Value (CLTV) is > 90%
    • Alt. A applications
  • If the application type is a refinance, the 1st mortgage does not have to be Genworth-insured, however, the following conditions will apply:
    • 1st mortgage must be held by a Genworth approved lender
    • 1st mortgage must be on repayment for a minimum of 1 year
  • Under all scenarios, the 1st mortgage must meet the following conditions:
    • Current at time of 2nd mortgage application with stable repayment history
    • 2nd mortgage agreement must contain cross-default clause (default on the first constitutes default on the second)
    • In the event of a re-advanceable 1st mortgage, no amount may be re-advanced until after the 2nd mortgage is paid out
    • If CLTV > 90%, the 1st mortgage must be held by the same lender

Eligible properties

  • Maximum 4 units where at least 1 unit must be owner occupied
  • New construction or existing properties

Equity Removal Limits

  • For CLTV ≤ 85%, equity removal is limited to $200,000
  • If the loan purpose is to consolidate the 1st and 2nd mortgages, the maximum CLTV ratios will apply

Terms

  • Fixed, standard variable, capped variable and adjustable rate mortgages are permitted

Amortization options:

  • LTV > 80%: Up to 30 years
  • LTV ≤ 80%: Up to 40 years

Premium rates*


LTV Ratio		Recommended Credit Score
Combined 1st & 2nd Loan Amounts
2nd Mortgage Amount
90.01% - 95%7002.75%4.25%
85.01% - 90%6602.00%4.25%
80.01% - 85%6201.75%3.50%
75.01% - 80 %6201.00%2.75%
65.01% - 75%6200.65%2.25%
Up to 65%6200.50%0.50%
Premium is non-refundable

* a 20 bps premium surcharge will apply for every 5 years of amortization beyond the traditional 25-year amortization period		 

Borrower qualification

  • GDS/TDS Guidelines: 

    Credit Score

    GDS

    TDS

    <680

    35%

    42%

        680+No limit44%
  • The mortgage payment to be used on the 1st mortgage for qualification purposes will be the greater of the actual P+I payment or the calculated P+I payment based on the Bank of Canada qualifying rate
  • Existing requirements related to income, down payment and credit worthiness apply

Documentation requirements

  • Lender required to have standard documentation on file

Portability

  • Mortgage default insurance is portable under this program.
  • The premium payable will be the lesser of the Premium as a % of the combined 1st and 2nd mortgage amounts, or the top-up premium as a % of the 2nd mortgage amount only as per table below
  • For complete details, please refer to Genworth's Portability Feature Product Overview

Eligible Loan Types/Products

  • Homebuyer 95
  • Purchase Plus Improvements
  • Cashout Refinance
  • Secondary Homes (Type A)
  • Alt A

Ineligible Loan Types/Products

  • New to Canada
  • Progress Advance
  • Cashback Equity 
  • Vacation Homes