Canada Guaranty Mortgage Insurance Benefits

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The Homeownership Solutions Program


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The Homeownership Solutions Program
Helping More Borrowers Stay Homeowners


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

For certain situations, lenders have the ability to implement solutions immediately and without approval from Canada Guaranty, as long as the parameters defined are not exceeded. Should the lender desire input from Canada Guaranty, the Loss Management team is always available and ready to work with the lender to assist a borrower in need. When assistance is required on a lender approved workout, or should the solution exceed the lender’s parameters and need Canada Guaranty’s approval, it will be important to provide us with the necessary information so that we can complete our review and recommendations as efficiently as possible. A workout request form is available to our lenders to assist them in providing us with the necessary information and help expedite the process.

Below is an example of an actual borrower who received support and benefitted as a result of the collaborative efforts between their lender and Canada Guaranty.

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

ILLNESS

The mortgagor (homeowner) is married with five children and is the sole income earner. He had been awaiting a date for lifesaving surgery and was expected to miss six months of work during his recovery. He neither had benefits nor insurance coverage through his employer.

Looking for assistance with mortgage payments during his recovery.

CONCERNS

  • Canada Guaranty’s discussions with the lender and borrower revealed that the mortgage had only been funded a short time, but that the borrowers had done business with our lender partner for a long time and payments had never been an issue. To date, all of the mortgage payments were being maintained. It was also confirmed that once recovered, the borrower would resume his current full-time employment and be able to continue to manage his mortgage.
  • The concern of the borrower and lender was that, while the surgery would happen before year end, a definite surgery date was not yet known. The borrower would be provided seven days’ notice when a date was provided by the hospital.

THE SOLUTION

  • Canada Guaranty provided an exception to support the workout and a pre-approved capitalization for up to six months of mortgage payments. Once the surgery occurred, the lender applied this workout solution.
  • Providing a “pre-approved” workout eliminated the stress and worry of the borrower as he prepared for his upcoming surgery.





CANADA GUARANTY CAN HELP

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.

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 and the options available.

Contact the Loss Management Team:

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