Canada Guaranty Mortgage Insurance Benefits

Archive for April, 2015

Premium Rates to Increase Effective June 1, 2015

Mortgage Insurance Premiums to Increase June 1, 2015

Effective June 1, 2015, Canada Guaranty will amend its mortgage insurance premium rates for homebuyers purchasing a home with less than 10% down payment.

  • The new premium rates will apply to purchase applications submitted on or after June 1, 2015, regardless of the closing date.
  • Premium rates applied to purchases made with a 10% or more down payment, will remain unchanged.

Effective June 1, 2015, the following premium rates will apply:

Loan-to-Value Ratio



(As of
June 1, 2015)

(As of
June 1, 2015)

Up to and including 65% 0.60% 0.60% 0.60% 0.60%
65.01 – 70% 0.75% 2.60% 0.75% 2.60%
70.01 – 80% 1.25% 3.15% 1.25% 3.15%
80.01 – 85% 1.80% 4.00% 1.80% 4.00%
85.01 – 90% 2.40% 4.90% 2.40% 4.90%
90.01 – 95% 3.15% 4.90% 3.60% 5.65%

Flex 95 AdvantageTM

(non-traditional down payment)





Canada Guaranty will continue to review its product offering, including all applicable premiums, on a yearly basis. Should you have any questions regarding these changes, please do not hesitate to contact me.

Thank you,

Mary Putnam | Vice President, Sales and Marketing
Canada Guaranty Mortgage Insurance Company

Telephone 416.640.8936
Toll Free 866.414.9109 ext. 8936

The Canada Guaranty Advantage

What is the Canada Guaranty Advantage?
“Our dedicated team and a commitment to helping our partners succeed!”

The busy spring market has arrived, but no matter the season, our team remains focused on providing our customers with personalized service, flexible solutions and timely responses. We are committed to delivering on our promise of service excellence by ensuring:

We look forward to helping you find the right solutions to support your clients’ success and encourage you to contact any member of our team with your questions.

Mary Putnam

Mary Putnam | Vice President, Sales and Marketing
Canada Guaranty Mortgage Insurance Company

Telephone 416.640.8936 | Toll Free 866.414.9109 ext. 8936

Toll Free Phone: 1.877.244.8422
Toll Free Fax: 1.877.244.8448
E-mail Address:

Hours of Availability
Monday to Friday 8 a.m. – 10 p.m. (ET)
Saturday 10 a.m. – 6 p.m. (ET)

Housing Market Trends

YoY Percentage Change_MAR 2015


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


Sales-Listings_MAR 2015

Source: CREA (The Canadian Real Estate Association)


  • Home prices remain strongest in Toronto, Hamilton and Vancouver; however the pace of price appreciation has slowed in recent months.
  • Home prices remain weaker in Quebec and the Atlantic regions due to softer labour market conditions and demographic trends.
  • Traditionally, a buyer’s, balanced or seller’s market is defined by the following ranges of sales-to-listings percentages:
< 35% Buyer’s Market (More homes are for sale than there are buyers)
= 36-54% Balanced Market
> 55% Seller’s Market (More buyers available than there are homes for sale)
  • Over the past few months, the effect of low oil prices has caused the Alberta housing market to move from a seller’s to a more balanced market.
  • Overall, the majority of Canada remains in a balanced market condition, with the exception of British Columbia and Ontario, both of which are seller’s markets.

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

Products + Solutions

Purchase Advantage Plus - Home Renos

Purchase Advantage Plus™
The Purchase Advantage Plus™ program is designed to assist borrowers who are looking to purchase a home with a desire to implement value-added improvements immediately after taking possession. This program allows homebuyers to include these renovation costs within their first mortgage, and all with as little as 5% down.



  • Purchase transactions.
  • Eligible for portability.
  • Maximum 4 units, with 1 unit owner-occupied.
  • New construction or existing resale properties.
  • Maximum 95% LTV for Purchase of 1-2 units.
  • Maximum 90% LTV for Purchase of 3-4 units.

Lending Value

  • The lending value is based on the lesser of the improved property value or the purchase price, plus all direct costs associated with the improvements.

Borrower Qualifications

  • A full appraisal is required for improvements exceeding 20% of the as-is value of the home or $40,000.
  • The borrower must provide the lender with quotes for the work to be completed.
  • Standard underwriting guidelines apply.

Documentation Requirements

  • Standard documentation.
  • Lender is responsible for managing holdbacks.
  • Lender to confirm improvements are completed.

Non-Conforming Improvements
While chattels and certain upgrades will often add to the marketability of the property, under this program, the following items would not qualify as an improvement:

  • Appliances
  • Decorative Items (light fixtures, etc.)
  • Hot Tubs
  • Pools and Landscaping*
  • Furnace/Air Conditioner

*A percentage of the cost may be considered on an exception basis.


The below steps highlight the process by which the Purchase Advantage Plus program traditionally follows. From initial quote to finished improvements, understanding and preparing for each phase will help expedite the review process.

  • STEP 1: Borrower makes an offer on a property.
  • STEP 2: Quote is established for the work to be done. This quote should list the following information:

    • Name, address and contact information of the contractor
    • Details of the work to be done and materials being used
    • Total cost and terms of payment
  • STEP 3: Borrower provides his/her lender with the quote(s) at the time of application.
  • STEP 4: Deal is approved, conditions are met and file is funded.
  • STEP 5: Lender holds back the amount of improvements.
  • STEP 6: Lender to confirm that improvements are completed.
  • STEP 7: Holdback is released to the borrower.

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 Charles

Thank You for Helping Us Celebrate Five Years!
This month, Canada Guaranty celebrates its fifth anniversary. Since our launch in 2010, we have made great progress with our partners and value the tremendous support we continue to receive from our growing list of lenders. Not long ago, a mortgage insurance duopoly existed in Canada, but, as a result of our entry under 100% Canadian ownership, homebuyers continue to benefit from additional choice and increased competition in the marketplace.

For the past five years, I have had the pleasure of leading a highly motivated team committed to building a strong franchise and reputation for delivering excellence to our customers. Listening to, and working closely with, our industry partners has always been integral to our growth, as has our desire to adapt quickly to meet the needs of Canada’s changing mortgage landscape. Throughout our evolution, from modest beginnings to our current level of industry support, we have relied on not taking anything for granted while continually striving for a higher standard.

This important milestone is one among many that we hope to celebrate as we continue to seek future opportunities to earn your business and enhance our commitment to better serve your needs. Without the continued support of our existing partners and the confidence of new customers, we would not be the company we are today.

We look forward to building upon these relationships and thank you for your continued partnership.

Andy Charles
President and CEO
Canada Guaranty Mortgage Insurance Company

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