Canada Guaranty Mortgage Insurance Benefits

Archive for 2014

Products + Solutions


Product Features + Benefits
Purchase Advantage Plus™


In a market where rising house prices make it difficult to find (and afford) your dream home, seeing the potential in a more attainable property, which may require a few renovations and some TLC, can often lead to creating the home of your dreams!

Canada Guaranty recognizes that home improvements are one of the wisest investments a borrower can make. The Purchase Advantage Plus™ product allows borrowers to complete desired upgrades and enhancements when they first move in, by including those costs within one easy-to-manage mortgage loan.


PRODUCT FEATURES & HIGHLIGHTS


  • Standard premium rates apply.
  • Low minimum down payment of 5% (for 1-2 units).
  • Lending value is based on the lesser of the improved property value or the purchase price, plus direct costs associated with the improvements.
  • Ability to complete minor renovations or improvements when first taking possession of the home.
  • Allows one to take advantage of lower interest rates on the mortgage loan as opposed to using high interest rate credit cards or personal lines of credit to finance the improvements.
  • Assists in budgeting for the completed renovations versus incurring additional monthly payments for renovations at a later time.


HOW TO QUALIFY/NEXT STEPS


1. Quotes must be provided:
The borrower is required to provide a list of quotes representing the amount or value for the work that will be completed.

2. The lending value of the home must be determined:
The lending value is based on the lesser of the improved property value or the purchase price, plus all costs associated with the improvements.

3. The mortgage amount must then be determined:
Once the lending value is determined, the down payment is taken into account, the appropriate insurance premium is calculated and the final mortgage amount is advanced.


TO LEARN MORE ABOUT THIS PRODUCT


For complete product guidelines and applicable premium rates, please visit the Canada Guaranty website to review the Purchase Advantage Plus™ product sheet. To discuss whether your clients qualify for approval, please contact your dedicated Account Executive or speak directly with a Canada Guaranty Underwriter at: 1.877.244.8422

Housing Market Trends



Source:

TREND SUMMARY

  • Across Canada, the housing markets remained robust throughout the summer season and national house prices continue to rise by 5-6% on a 12-month basis.
  • British Columbia, Alberta and Ontario remain the strongest provinces, driven in large part by house price appreciation in Vancouver, Calgary and Toronto.
  • Markets showed somewhat weaker results in the Maritimes, Quebec and Prairie provinces, where house prices decreased year-over-year in PEI, remained flat in Nova Scotia, and showed a modest 2% increase in Quebec, Saskatchewan and Manitoba.
  • Exclusive neighbourhoods continue to drive home-price growth in Vancouver and Toronto, with Toronto’s affluent areas of Forest Hill, Allenby and Casa Loma listing an average home price of $1.5 MM. Similarly, house prices went up in the more expensive Vancouver neighbourhoods of Shaughnessy and Pacific Spirit Park.

To view additional monthly aggregate house price data for 13 of Canada’s major cities, please visit the Brookfield RPS House Price Index public site.

NOTE: Click on the image of the map to download/print in PDF format.


Introduction from Andy Charles


Andy CharlesA slow start to the spring market turned into a strong summer and activity levels continue to be stable. Across the country, the housing market remains balanced and while autumn is not the busiest season for our industry, it often represents the last “rush” for homebuyers eager to solidify their offers and take possession before the holiday season arrives.

Temperatures (along with projected housing starts) may be cooling, but low mortgage rates continue to entice buyers into the housing market before potential rate increases become a reality. For some, this can mean taking on difficult-to-sustain household debt, leading to affordability concerns and consequent financial difficulties. For others, homeownership may be getting further and further out of reach. In markets like Vancouver, Calgary and Toronto, where home prices continue to rise and affordability is stretched, some homebuyers are being priced out of the market or are unable to move-up from their current homes. While more than one option exists, in this issue of Mortgage Insurance Insights we highlight a product designed to help borrowers who may be struggling to find their dream home, but see the potential in a more affordable property – after identifying a few key enhancements. The Purchase Advantage Plus™ product allows qualified homebuyers the opportunity to purchase a home and make value-added improvements immediately, all managed through one mortgage product.


With convenient tools and customized programs available to help your clients succeed, Canada Guaranty remains committed to offering solutions that provide responsible borrowers greater access to affordable and sustainable homeownership. Contact a member of our national team to find out how we can help bring your clients’ homeownership dreams within reach.

Andy Charles
President and CEO
Canada Guaranty Mortgage Insurance Company

The Canada Guaranty Advantage


The Canada Guaranty App for iPhone®, BlackBerry® and Android™
Providing Mobile Mortgage Insurance Solutions Anytime, Anywhere.

FEATURES OF THE CANADA GUARANTY APP

Whether at home or in the office, mortgage professionals will benefit from mobile mortgage solutions provided by Canada Guaranty. With features that provide convenient access to the information you need to successfully assist your clients, the Canada Guaranty app helps you stay informed on the latest news, calculate mortgage and premium payments, and review essential product information – all at your fingertips!

  • INSURANCE PRODUCTS
    Review the comprehensive list of Canada Guaranty mortgage insurance products and guidelines to help your clients find the right solutions for their unique needs.
  • NEWS CENTRE
    Read the latest updates, news releases and reports issued by Canada Guaranty, automatically uploaded to the News Centre.
  • MORTGAGE PAYMENT CALCULATOR
    Compare monthly, bi-weekly and weekly accelerated mortgage payments with the Mortgage Payment Calculator.
  • INSURANCE PREMIUM CALCULATOR
    Confirm applicable premium rates on all Canada Guaranty mortgage insurance products with the insurance premium calculator.
  • NEWSLETTER SIGN-UP
    Subscribe to the Canada Guaranty newsletter to receive updates and announcements, sent directly to your e-mail account.
  • CONTACT INFORMATION
    Quickly find important contact information, clearly identified by each Canada Guaranty team.

DOWNLOAD TODAY!

Download the FREE Canada Guaranty app from the App StoreSM, BlackBerry App World™ or Google Play™. For more information, please visit www.canadaguaranty.ca/mobile.

The Homeownership Solutions Program


Helping More Borrowers Stay Homeowners
The Homeownership Solutions Program


Specifically designed to help borrowers who are experiencing unforeseen short-term financial difficulty, the Canada Guaranty Homeownership Solutions Program provides lenders with greater flexibility to quickly offer their borrowers assistance while satisfying both the lending institution’s requirements and the borrower’s temporary challenges.

When short-term financial hardship occurs as a result of an unanticipated life event, early intervention can make all the difference when working towards a positive outcome. For borrowers who are highly motivated to maintain their homeownership and are receptive to working with their lender at the first sign of distress, Canada Guaranty offers effective solutions to support the mortgagors so that recovery and resolution can successfully take place.


The following scenarios represent real life examples of borrowers who received support and benefited as a result of the collaborative partnership between their lenders and Canada Guaranty.

Reason for Assistance (Borrower Circumstance) Lender’s and/or Borrower’s Request Implemented Workout Solution

Borrower Illness
Medical treatment for recovery took longer than anticipated.

Looking for assistance with mortgage arrears.
  • Canada Guaranty’s initial review indicated that, moving forward, the borrower would not have capacity to maintain the mortgage.
  • Discussions were had about listing the property for sale and support would be provided during the listing and selling process.
  • The borrower agreed and listed the property for sale. Canada Guaranty then approved a solution to address the property tax arrears, provided a three-month plan for partial payment of the mortgage installments by the borrower, and provided a capitalization of the monthly balance.

Loss of a Family Member
Following the sudden passing of a family member, the borrowers were left with unforeseen funeral costs to manage.

Looking for temporary relief from mortgage payments.
  • Working with the lender to determine the best approach, Canada Guaranty offered the borrowers a three month capitalization of the mortgage payments.
  • This provided the borrowers with the time they needed to deal with their loss and removed the added stress of trying to figure out how they would be able to pay their mortgage.









The lender’s internal guidelines always supersede those offered by Canada Guaranty; however, in all cases, our Loss Management team is available to offer ongoing support, consultation and customized solutions to facilitate the successful implementation of a workout.

CANADA GUARANTY CAN HELP
If your client or borrower is experiencing temporary financial hardship, please feel free to contact a member of our Loss Management team with any questions or to learn more about the Homeownership Solutions Program options available.

Contact the Loss Management Team:

Housing Market Trends


Year-over-year percentage changes in house and condo prices, as recorded in May 2014.



Source:

Summary: House Prices Remain Strong Across Canada
Despite a delayed start to the spring market, housing activity increased over the past quarter, resulting in strong home prices sustained throughout most of Canada. The Western provinces of British Columbia and Alberta showed the most significant changes (prices went up 7% and 5%), while housing markets in Saskatchewan, Quebec and most of the Maritime Provinces demonstrated somewhat weaker results (Quebec and Saskatchewan up 1%, PEI down 3%). In parts of British Columbia and Ontario, home prices recorded in exclusive neighbourhoods remained robust. In Vancouver, prices went up more than 15% in the high-end neighbourhoods of Marpole and Kerrisdale, while similar trends were apparent in Toronto, where home prices in the affluent neighbourhoods of Forest Hill, Lytton Park and Moore Park were up between 15% and 20%.

To view additional monthly aggregate house price data for 13 of Canada’s major cities, please visit the Brookfield RPS House Price Index public site.

NOTE: Click on the image of the map to download/print in PDF format.



The Canada Guaranty Advantage


 
The Canada Guaranty Advantage
Support from a National Team of Experienced Underwriters

Across the country, Canada Guaranty’s national team of regional Underwriters is proud to offer local market expertise throughout Western Canada, Ontario, Quebec, and Atlantic Canada. With a commitment to delivering service excellence, we continue to grow our team, offer extended hours, and will not rest until each application is reviewed and our promised turn-around-time is met.

Through a dedicated team of regional Account Executives and Underwriters, we remain focused on providing personalized service, flexible solutions and timely responses to your questions. That is why we’ve made it our priority to ensure:

  • Every call to our National Underwriting Centre is answered directly by a decision-maker.
  • We are committed to the goal of meeting our promised turn-around-time on each application submitted.
  • We are available when you need us the most and even later to support you beyond regular business hours.

NATIONAL UNDERWRITING CENTRE

Toll Free Phone:
Toll Free Fax:
E-mail Address:

1.877.244.8422
1.877.244.8448
underwriting@canadaguaranty.ca

Hours of Availability

Monday to Friday
Saturday

8 a.m. – 10 p.m. (ET)
10 a.m. – 6 p.m. (ET)


“Each member of our experienced team is committed to providing you with the dedicated support you have come to expect from Canada Guaranty. Sound underwriting often means exhausting all possible options before making a decision, while continually seeking the right solutions to ensure your clients find that perfect home and enjoy it for years to come. We look forward to working with you to help your clients achieve their dreams of homeownership, today!”

- Aldo Aragon, Director of Underwriting 
Canada Guaranty Mortgage Insurance Company


Products + Solutions



Products + Solutions
Lifestyle Advantage™ and Low Doc Advantage™ Products Supported    


Canada Guaranty continues to offer the Lifestyle Advantage (Second Home) and Low Doc Advantage (Self-Employed) products for qualified applicants with a strong credit profile. Please click on the above links to view the individual product features and guidelines.

Product Updates:
 

1. On May 30, 2014, the following updates were made to the property guidelines of the Lifestyle Advantage product: 

  • Only properties with a maximum of one unit are eligible under the Lifestyle Advantage. Previously, two-unit properties were allowed.
  • The property must be owner-occupied or occupied by a member of the owner’s immediate family as defined as a person related to the borrower by marriage, common-law partnership or any legal parent-child relationship.

2. The Low Doc Advantage guidelines remain unchanged.


PRODUCT TIP
| Submitting a Low Doc Advantage™ Application


To help self-employed borrowers, with a strong credit profile, improve their chances of qualifying under the Low Doc Advantage program, please keep the following documentation tips in mind when submitting an application to Canada Guaranty:  

  1. Ensure all current and complete financial and tax documentation is available. This documentation may be requested for review by Canada Guaranty.
  2. When submitting an application, ensure detailed application notes, including business history and financial details, are provided. It may be necessary to discuss your client’s income, expenses, business milestones, etc. The more information gathered about the applicant’s employment status and stability, the better.

Should you have any questions or wish to discuss your client’s unique circumstances, please do not hesitate to contact your dedicated Account Executive or speak directly with a member of our National Underwriting Team at 1.877.244.8422.   

NOTE: The Lender’s internal guidelines always take precedence and must be adhered to prior to review by Canada Guaranty.

Introduction from Andy Charles


Andy CharlesIt has become clear that status quo no longer exists as our industry evolves to further support the sustainability of a strong housing market. This quarter, following significant changes announced by CMHC, the mortgage industry witnessed premium rate increases (effective May 1st) and, for one insurer, the elimination of mortgage insurance coverage for second home mortgages and self-employed borrowers. Canada Guaranty is pleased to confirm our continued support of the second home (Lifestyle Advantage™) and self-employed (Low Doc Advantage™) products. These, along with Canada Guaranty’s full suite of mortgage insurance solutions, can be downloaded from our website.

Canada Guaranty is dedicated to providing our mortgage and lending partners with a diverse range of products to support their clients’ unique needs. Through prudent risk management and sound underwriting practices, executed by a team of experienced Underwriters, we look forward to ensuring that more borrowers find the right solutions to achieve greater access to affordable and sustainable homeownership.


We appreciate your continued support and encourage you to contact a member of our team with any questions.

Andy Charles
President and CEO
Canada Guaranty Mortgage Insurance Company

New Treatment of Rental Income | Effective June 9, 2014


On Monday, June 9, 2014, changes to the treatment of rental income from non-owner-occupied subject rental properties and owner-occupied subject properties with income suites, will take effect. As a result of this change, the 80% Rental Offset option will no longer be available.

To learn more about these changes, please take a moment to review the attached Lender Update:


QUESTIONS
Should you have additional questions, please do not hesitate contact your dedicated Account Executive or speak with a member of our National Underwriting Team at 1.877.244.8422.


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