Canada Guaranty

Transaction Types

• Purchase transactions.
• Purchase Advantage Plus™.
• Refinance transactions.
• 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, including the Flex 95 Advantage™.

Loan-to-Value Criteria

• 95% maximum LTV for Purchase.
• 85% maximum LTV for Refinance.

Property Types

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

Eligible Property Types and Features

• Modular homes.
• Properties must be winterized and have year-round access.
• Properties must have well and septic systems when municipal services are not available.

Ineligible Property Types and Features

• Mobile homes.
• Island properties without bridge access.
• Fractional homeownership.
• Condominium hotels.
• Investment, rental pool or timeshare properties.
• Rental properties.
• Non-winterized homes with seasonal access.

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

• Total Debt Service ratio calculation must include the servicing of both properties, including taxes and 50% of condo fees, if applicable.
• Up to and including 679 credit score: GDS 35%; TDS 42%
• 680+ credit score: TDS 44%
• Standard underwriting guidelines apply.

Documentation Requirements

• Standard documentation.

Applicable Premiums