Canada Guaranty Mortgage Insurance Benefits

Archive for 2014

UPDATE: Self-employed and Second Home Products Continue to be Supported


We would like to take this opportunity to confirm our continued support of the Low Doc Advantage™ (business-for-self) and Lifestyle Advantage™ (second home) products for qualified applicants with a strong credit profile.  Please note the important update affecting the Lifestyle Advantage product.

Low Doc Advantage | No Change

  • Self-employed borrowers, with a strong credit profile, continue to qualify using non-traditional income verification provided the income is consistent with the borrower’s profession and industry.

Updated Lifestyle Advantage Property Eligibility | Effective May 30, 2014

  • Effective Friday, May 30, 2014, only properties with a maximum of one unit will be eligible under the Lifestyle Advantage product. 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.

Should you have any 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. 

The Homeownership Solutions Program

Homeowners facing temporary financial difficulty do have options.


As an advocate for sustainable homeownership, Canada Guaranty is committed to working with our partners to find the right solutions for their clients, throughout the home-buying process. Unfortunately, unforeseen financial hardship can sometimes threaten the dream of homeownership and the inability to make the next mortgage payment quickly becomes a reality. Thankfully, as many homeowners have come to appreciate, options are available that can help them stay in their homes during these challenging times.

As a homeowner, it is important to know your options. If you are experiencing financial difficulty, don’t delay; contact your lender as soon as you know there is a problem. Early intervention can make all the difference!

WHO IS THE HOMEOWNERSHIP SOLUTIONS PROGRAM FOR?

Specifically designed to help borrowers who are experiencing short-term financial difficulty, the Homeownership Solutions Program provides lenders with greater flexibility to offer their borrowers options that can help satisfy both the lending institution’s requirements and the borrower’s temporary challenges.

A PROGRAM DESIGNED TO SUPPORT EARLY INTERVENTION

  • The Homeownership Solutions Program is unique in that it allows lenders to take advantage of commonly implemented, pre-approved workout solutions.
  • These pre-approved options permit the lender to act immediately and independently without the unnecessary involvement of Canada Guaranty. This ensures potential resolution is identified and implemented earlier, and borrowers can have peace of mind, even sooner.
  • While the lender’s internal guidelines always supersede those offered by Canada Guaranty, from realization to resolution, our Loss Management team is available to offer ongoing support, consultation and customized solutions to facilitate the successful implementation of a workout.

IMPLEMENTING A SUCCESSFUL WORKOUT SOLUTION

Once a borrower has expressed concerns about their temporary financial difficulty and the inability to satisfy their mortgage payments, detailed information should be gathered to ensure a comprehensive understanding of their circumstances is captured.

For Lenders

  • As a Canada Guaranty partner, you should already be familiar with the Lender-Approved programs supported by your lending institution and, if applicable, can implement a suitable workout solution for your borrower, right away.
  • The Canada Guaranty Loss Management team is always available to provide support, advice or direction, whenever you need it. Whether a solution is approved or not, we are only a call or e-mail away!

For Brokers

  • To assist your client, it is important that you or the borrower contact their lender to advise of the situation as soon as possible. Alternatively, should you contact Canada Guaranty, a member of our Loss Management Team would be happy to connect you with the appropriate Lender contact(s).

Remember: Early intervention can make all the difference! Contact the lender as soon as you are aware of an issue.

CANADA GUARANTY CAN HELP

Canada Guaranty is dedicated to working with our partners to ensure borrowers can keep their homes. Please contact a member of our Loss Management team with any questions or to learn more about the Homeownership Solutions Program.

Loss Management Team

Products + Solutions

Energy-Efficient Program
It’s cost effective to make energy efficient choices.
Ensure your clients are taking advantage.


This year, homeowners across the country felt the effects of one of Canada’s coldest winters in the form of surging energy bills. According to Natural Resources Canada, almost two thirds of the energy in our homes is used for space heating. While the cost to heat our homes inevitably rises during the colder months, there are ways to mitigate some of these costs by incorporating more energy efficient options.

The Benefit of Making Energy Efficient Choices
In addition to lowering utility bills, energy efficiency saves energy and reduces our impact on the environment. Through the Energy-Efficient Advantage program, Canada Guaranty is pleased to support borrowers who purchase energy efficient homes, or obtain mortgage financing to make energy efficient home improvements, by providing a 10% refund of the mortgage insurance premium.

ENERGY-EFFICIENT PROGRAM GUIDELINES
Eligible Transaction Types

  • Available on all Canada Guaranty mortgage insurance products.
  • Eligible for Purchase transactions, including New Construction or Existing Homes.
  • Eligible for Purchase or Refinance, with the intention of making energy-efficiency improvements.

Program Qualifications

  • A 10% premium refund is eligible for borrowers who have mortgage financing that is currently insured by Canada Guaranty and has funded on or after May 1, 2013.
  • The request for the 10% premium refund must be submitted within one year of the mortgage advance.
  • All applicable mortgage insurance premiums and fees on the original mortgage must have been received by Canada Guaranty prior to issuing the Energy-Efficient Advantage refund.

ADDITIONAL DETAILS AND ELIGIBILITY TO APPLY FOR THE REFUND

Please click here to learn more about the Energy-Efficient Advantage program, including program guidelines, critical documentation requirements and eligibility.

Housing Market Trends


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

 


Source:

Summary: House Prices Continue to Rise in February
Despite repeated forecasts for a housing market correction, house prices in Canada continue to climb. While national prices are on the rise, there are significant disparities at a regional level. The Western provinces of Alberta and British Columbia remain strongest with prices up 7% and 5%, whereas housing markets in Quebec and most Maritime provinces are weaker (Quebec flat, Nova Scotia down 4%). Even within certain cities, we continue to see some neighbourhood variances. For example, pockets of Vancouver (such as Coal Harbour and Mt. Pleasant) remain down, while overall price appreciation remains strong. In Hamilton, condo prices are down more than 8% while single family detached prices continue to appreciate.

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

I am pleased to introduce the Canada Guaranty newsletter, designed to provide you with insightful and useful information. Since 2010, Canada Guaranty has been offering dedicated support and flexible solutions to our industry partners across the country. Our commitment to service excellence is demonstrated through the personalized support of our regional Sales and Underwriting teams, by ensuring every call to our National Underwriting Centre is answered directly by a decision maker, and by providing our partners with effective tools to better support their clients.

While this newsletter does not replace the personalized support you receive from our knowledgeable and experienced team, we hope it becomes a helpful resource from which to obtain relevant information. We look forward to hearing your feedback and bringing you the information you need to help your clients succeed. As always, our national team is standing by to support you in any way that we can. Please don’t hesitate to reach out, today.


We appreciate your continued support and wish you all the best for a successful season!

Andy Charles
President and CEO
Canada Guaranty Mortgage Insurance Company



From Coast to Coast


From Coast to Coast, We’re Growing to Serve You Better!

Across Canada, our growing National Sales Team is committed to providing you with dedicated support and personalized service to better serve you and the needs of your clients. With extensive industry experience and local market expertise, Canada Guaranty’s regional Account Executives are standing by to help you find the best possible solutions to ensure your clients achieve their homeownership goals.

To learn more, please visit www.canadaguaranty.ca or contact your dedicated Account Executive, today!  

 

Standing, from left to right:
Marco De Paolis (ON), Casey Archibald (BC), Darren Kirk (AB), David Napoleone (ON), Mike Klassen (NS), Tom Kiskunas (ON), Cathy Tucker (AB)

Seated, from left to right:

Chelsea Wallace (ON), Diana Tavares (QC), Michelle Newton (ON), Mary Putnam (ON), Barbara Hale (AB), Jennifer Rathbone (AB), Brenda Peever (MB), Elizabeth “Liz” Sanchez (ON), Lisa Nikiforuk Bell (BC), Selma Granger (ON)




[UPDATE] Canada Guaranty Mortgage Insurance Premiums to Increase May 1, 2014

Effective May 1, 2014, Canada Guaranty will amend its mortgage default insurance premium rates to reflect an average increase of 15 per cent. These changes will not affect currently insured Canada Guaranty mortgages, but will apply to applications submitted on or after May 1, 2014. To learn more about these changes and help answer some of the questions you may have, please take a moment to review the detailed communication, included below.

Throughout this transition, please do not hesitate to contact your dedicated Account Executive or speak with a member of our National Underwriting Team with any questions.

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