Canada Guaranty Mortgage Insurance Benefits

Archive for 2017

Andy Charles on Housing Prices in the GTA and Mortgage Lending

Canada Guaranty News
Andy Charles Comments on Surging Housing Prices in the Greater Toronto Area and Mortgage Lending


Andy Charles, President and CEO of Canada GuarantyIn a recent article published in the C.D. Howe Institute’s Intelligence Memos Blog, Andy Charles, President and CEO of Canada Guaranty, shared his perspective on the state of mortgage lending in Canada with particular emphasis on the factors that are influencing recent price escalation in the GTA and, more notably, those that are not.

To review Andy’s thoughts, please click on the link below: 
https://cdhowe.org/intelligence-memos/andy-charles-housing-prices-gta-and-mortgage-lending

LENDER UPDATE: Clarification Regarding Bank of Canada Qualifying Rate

LENDER UPDATE
Clarification Regarding Bank of Canada Qualifying Rate
(Download Update)


In relation to the recent increase of the Bank of Canada 5-year conventional mortgage interest rate (referred to as the “benchmark rate”), Canada Guaranty would like to provide additional clarity regarding the application of the benchmark rate when qualifying borrowers for mortgage insurance.

  • All insured home buyers are qualified for mortgage financing based on an interest rate that is the greater of the contract mortgage rate OR the Bank of Canada benchmark rate, which is published weekly and comes into effect each Monday. Canada Guaranty’s adjudication system automatically reflects the applicable Bank of Canada benchmark rate for qualification purposes.
  • Any new loan applications submitted to Canada Guaranty for insurance are subject to the qualifying interest rate in effect as of the date of submission.
  • Approvals issued for mortgage insurance applications prior to a new benchmark rate increase remain valid and do not require resubmission.
  • If the mortgage insurance application is received after a new benchmark rate increase, the previous, lower benchmark rate is applicable, provided the lender made a legally binding commitment to make the loan to the borrower prior to the effective date of the benchmark rate change.

Should you have any additional questions, please contact a member of our National Accounts team:

Darren Kirk
Vice President, Regional Sales
1.866.414.9109 ext. 7003
Darren.Kirk@canadaguaranty.ca

Marco De Paolis
Director, National Accounts
1.866.414.9109 ext. 7054
Marco.DePaolis@canadaguaranty.ca

Liz Sanchez
Director, National Accounts
1.866.414.9109 ext. 7070
Liz.Sanchez@canadaguaranty.ca



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

Telephone 416.640.8936 
Toll Free 866.414.9109 ext. 8936 
E-mail mary.putnam@canadaguaranty.ca

LENDER UPDATE: Homeowners Affected by Wildfires in British Columbia

LENDER UPDATE
Homeowners Affected by Wildfires in British Columbia
(Download Update)


On behalf of Canada Guaranty, I would like to express our concern for the families and communities impacted by the current wildfires throughout British Columbia. We are committed to working with our partners to offer solutions that help mitigate temporary financial hardship resulting from this unforeseen event.

Through Canada Guaranty’s Homeownership Solutions Program, lenders have a number of solutions available to support homeowners facing temporary challenges in meeting their mortgage commitments. Given the current situation in British Columbia, Canada Guaranty is prepared to offer additional flexibility for the affected homeowners by extending the capitalization solution up to a maximum of six (6) monthly payments, provided that the:

  1. Original insured loan amount is not exceeded;
  2. Request for capitalization is received before December 31, 2017; and
  3. Capitalization is being applied to help mitigate short-term financial difficulty resulting from the current wildfires in British Columbia, and not an unrelated event.

In the event that a homeowner requires additional assistance, exceeds the original loan amount, or the request comes after the program deadline of December 31, 2017, Canada Guaranty will review each request on an individual basis.

Should you have any questions or wish to discuss your client’s unique circumstances, please do not hesitate to contact a member of our Loss Management Team:

CANADA GUARANTY | LOSS MANAGEMENT TEAM
  • Toll Free: 1.866.414.9109 ext. 7001
  • E-mail: lossmanagement@canadaguaranty.ca





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

Telephone 416.640.8936 
Toll Free 866.414.9109 ext. 8936 
E-mail mary.putnam@canadaguaranty.ca

LENDER UPDATE: Mortgage Default Insurance Premiums Subject to 6% PST in Saskatchewan | Effective August 1, 2017

LENDER UPDATE
Mortgage Default Insurance Premiums Subject to 6% PST in Saskatchewan | Effective August 1, 2017


Effective August 1, 2017, Saskatchewan’s applicable 6% Provincial Sales Tax (PST) will include premiums for mortgage default insurance on properties located within Saskatchewan. We are pleased to advise that our system has been updated to ensure applications reflect this change, as follows:

  • Applications submitted with closing dates on or after August 1, 2017 will have the 6% PST automatically calculated.
  • We ask that any Canada Guaranty-approved applications received prior to this update, with closing dates on or after August 1, 2017, please be resubmitted to ensure you receive an amended certificate that reflects the Saskatchewan PST and new total insurance cost.
  • The Saskatchewan tax will be calculated as follows:
    Mortgage default insurance premium x Saskatchewan 6% PST = PST Amount

Should you have any questions regarding this policy, please do not hesitate to contact your dedicated Account Executive or speak with a member of our National Underwriting Team at 1.877.244.8422.


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

Telephone 416.640.8936 
Toll Free 866.414.9109 ext. 8936 
E-mail mary.putnam@canadaguaranty.ca

LENDER UPDATE: Nova Scotia Down Payment Assistance Program | Effective May 1, 2017

LENDER UPDATE
Nova Scotia Down Payment Assistance Program | Effective May 1, 2017
(Download Update)


Canada Guaranty is pleased to support eligible first-time home buyers in Nova Scotia under the new Down Payment Assistance Program (DPAP). Effective May 1, 2017, qualified participants can apply to receive an interest-free, repayable loan of up to five per cent of the purchase price to be used towards the down payment of a home.

For complete details, including application qualifications and submission notes requirements, please download the attached update.  If you have any questions or concerns related to this update, please contact your Canada Guaranty representative.


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

Telephone 416.640.8936 
Toll Free 866.414.9109 ext. 8936 
E-mail mary.putnam@canadaguaranty.ca

LIFESTYLE ADVANTAGE™

PROGRESS DRAW ADVANTAGE™

PORTABLE ADVANTAGE™

MAPLE LEAF ADVANTAGE™

Credit requirements are based on the loan-to-value ratio of the borrower.
90.01%-95%:12 months rental payment history, confirmed via letter from  the borrower’s landlord and supported by 12 months of bank  statements confirming rental payments.
AND
At least one utility payment confirmed via letter from the service provider or 12 months of bill statements confirming regular payments.
90% or Less: 6 months verifiable bank statements from a recognized Canadian financial institution or from a financial institution of the country of origin.
AND
6 consecutive months of 2 verifiable monthly payments (i.e. utilities) in good standing.
*All forms of alternative credit confirmation used to qualify must have been established in Canada.

PURCHASE ADVANTAGE PLUS™

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