Low Down Payment Options


FLEX 95 ADVANTAGE™

The Flex 95 Advantage program offers a flexible down payment option for borrowers with a strong credit history. The borrower may access 5% equity from sources not covered in our Down Payment Advantage™ program.

 

 

Transaction Types

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

 

Amortization

  • Maximum 25 years.

 

Credit Score Requirements

  • Strong credit profile required.

 

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

 

Eligible Sources of Equity

  • 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.
  • Maximum debt service ratios: GDS 39% / TDS 44%

 

Portability Options

1. Port from Flex 95 Advantage to Flex 95 Advantage

The premium will be the lesser of:

  • The increase in the loan amount multiplied by the applicable Flex 95 top-up premium rate, outlined below.

OR

  • The new loan amount multiplied by the full Flex 95 premium rate.

2. Port from Flex 95 Advantage to Standard Canada Guaranty-insured Loan

The premium will be the lesser of:

  • The increase in the loan amount multiplied by our standard top-up premium rates as described in the Portable Advantage™ product sheet.*

OR

  • The new loan amount multiplied by the full Flex 95 premium rate.

3. Port from Standard Canada Guaranty-insured Loan to Flex 95 Advantage

The premium will be the lesser of:

  • The outstanding mortgage balance multiplied by 0.50% plus the top-up amount multiplied by the Flex 95 top-up premium rate.

OR

  • The new loan amount multiplied by the full Flex 95 premium rate.
*Please see the Portable AdvantageTM product sheet for details regarding standard premium rates and the Borrower Loyalty Program.

 

Documentation Requirements

  • Standard documentation.

 

Applicable Premiums

Loan-to-Value Ratio Single Premium Top-Up Premium
90.01%–95%4.50%6.60%
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