Canada Guaranty

Transaction Types

• Purchase transactions.
• Refinance 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

Purchase Transactions:

• Maximum 90% LTV: 700+ credit score
• Maximum 85% LTV: 650-699 credit score

Refinance Transactions:

• Maximum 85% LTV: 650+ credit score
  

Loan-to-Value Criteria

Purchase Transactions:

• 1-2 units: Maximum 90% LTV for Purchase transactions.

Refinance Transactions:

• 1-2 units: Maximum 85% LTV for Refinance transactions with a limit of $150,000 in equity removal for debt consolidation or $200,000 for asset enhancing purposes.

Property Types

• Maximum 2 units, with one unit owner-occupied.
• Existing resale and new construction.
• Maximum loan amount in the Greater Toronto Area, Greater Vancouver Area and Greater Calgary Area is $ 750,000. For all other locations, a maximum loan amount of $ 600,000 is applicable. Exceptions will be considered on a case-by-case basis.

Borrower Qualifications

• Self-employed for a minimum of 2 years.
• Commission sales income is not eligible under this program.
• No delinquencies in the past 12 months. No mortgage defaults in the past 5 years or previous bankruptcy. No income tax arrears.
• Income must be consistent with the borrower’s profession and industry.
• Self-employed borrowers must be the primary business owner.
• Down payment is from borrower’s own resources. No gifted or borrowed down payments.
• Up to and including 679 credit score: GDS 35%; TDS 42%
• 680+ credit score: TDS 44%

Documentation Requirements

• Applicant must provide proof of self-employment for a minimum of 2 years.
• Income stated by borrower on a signed mortgage application or stated income declaration.
• Recent notice of assessment or a signed affidavit to confirm that there are no income tax arrears.
• Please contact the National Underwriting Centre or refer to the Canada Guaranty Underwriting Guidelines for acceptable forms of confirmation.

Applicable Premiums