Canada Guaranty

Transaction Types

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

Amortization

• 25 year standard.
• Eligible for up to 30 years amortization.
• 20 bps incremental premium surcharge for each additional 5 years beyond the standard 25 years. 

Credit Score Requirements

• Minimum 650+ credit score.

Loan-to-Value Criteria

• 95% maximum LTV.

Property Types

• Maximum 2 units, with 1 unit owner-occupied.
• Resale or new construction (single advance).

Eligible Sources of Equity

• Lender cash-back incentives.
• Equity borrowed from any source that is arm’s length to the purchase or sale transaction. This may include personal loans, lines of credit, or lender credit. Loan payments must be included in the TDS calculation.
• Gifts or grants from any party that is arm’s length to the transaction.

Ineligible Sources of Equity

• Sources that are not arm’s length to the transaction, either directly or indirectly, are ineligible. Ineligible sources include, but are not limited to: builder incentives or loans, Realtor®/mortgage broker incentives, or loans to the borrower that impact the property selling price.

Borrower Qualifications

• When the down payment is borrowed, payments must be included in the TDS.
• No third-party or non-occupying guarantors.
• Standard underwriting guidelines apply.
• 650–679 credit score: GDS 35%; TDS 42%
• 680+ credit score: TDS 44%

Documentation Requirements

• Standard documentation.

Applicable Premiums