Low Down Payment Options


DOWNPAYMENT ADVANTAGE™

95% LTV and Less

The Downpayment Advantage program is designed for borrowers who can make a down payment of at least 5% toward the purchase of a home.

 

 

Transaction Types

  • Purchase transactions.
  • Purchase Advantage Plus™ eligible.
  • Portable eligible.

 

Amortization

  • Maximum 25 years.

 

Loan-to-Value Criteria

  • 95% for Purchase: 1-2 units
    • Purchase Price ≤ $500,000: Minimum 5% down payment required.
    • Purchase Price > $500,000 and < $1,000,000: Minimum 5% down payment required on the first $500,000 of the purchase price, plus an additional 10% down payment required on the portion of the purchase price above $500,000.]
  • 90% for Purchase: 3-4 units
  • NOTE: Maximum LTV is subject to adjustments based on local housing market conditions.

     

    Interest Rate Types

    • Fixed, standard variable, capped variable and adjustable rate mortgages permitted.
    • Borrower(s) must qualify at an interest rate that is the greater of the contract mortgage rate or the five-year benchmark rate.

     

    Property Types

    • Maximum property value must be less than $1,000,000.
    • Maximum 4 units, with 1 unit owner-occupied.
    • Resale or new construction (single advance).
    • Progress Advance: refer to Canada Guaranty Progress Draw Advantage™ product sheet.

     

    Borrower Qualifications

    • Down payment must be from borrower’s own resources or gifted from an immediate family member.
    • Standard underwriting guidelines apply.
    • Maximum debt service ratios: GDS 39% / TDS 44%

     

    Documentation Requirements

    • Standard documentation.

     

     

    Applicable Premiums

    Loan-to-Value Ratio Single Premium Top-Up Premium
    ≤ 65%0.60%0.60%
    65.01%-75%1.70%5.90%
    75.01%-80%2.40%6.05%
    80.01%-85%2.80%6.20%
    85.01%-90%3.10%6.25%
    90.01%-95%4.00%6.30%
    NOTE: Mortgage Insurance premiums are non-refundable.

     


    Last Updated: 03/17/2017

    Copyright © 2010 - 2017 Canada Guaranty Mortgage Insurance Company. All Rights Reserved. All mortgage insurance is underwritten by Canada Guaranty Mortgage Insurance Company.

    Terms of Use | Privacy Policy | Portfolio Metrics