New to Canada


MAPLE LEAF ADVANTAGE™

Canada Guaranty’s Maple Leaf Advantage provides new immigrants, who have limited documented credit history, the opportunity to purchase a home with as little as 5% down.

 

 

Transaction Types

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

 

Amortization

  • 25 year standard.
  • Up to 80% LTV: Eligible for a 30 year amortization (subject to a 0.25% premium surcharge).

 

Credit Requirements & LTV Criteria

  • Credit requirements are based on the loan-to-value ratio of the borrower.

90.01%-95%:

  • [NOTE: The following minimum down payment guidelines apply to applications received on or after February 15, 2016:
    • 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.]
  • International credit bureau.

OR

  • 12 months rental payment history, confirmed via letter from the borrower’s landlord and supported by 12 months of bank statements confirming rental payments.

AND

  • At least one utility payment confirmed via letter from the service provider or 12 months of bill statements confirming regular payments.

90% or Less:

  • 6 months verifiable bank statements from a recognized Canadian financial institution or from a financial institution of the country of origin.

OR

  • A letter of reference from the borrower’s financial institution of the country of origin confirming a minimum of 6 months satisfactory banking relationship.

*All forms of alternative credit confirmation used to qualify must have been established in Canada.

NOTE: Maximum LTV is subject to adjustments based on local housing market conditions.

 

Property Types

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

 

Borrower Qualifications

  • Must have immigrated to Canada within the last 5 years.
  • Minimum 5% down payment from borrower’s own resources. Remainder may be gifted from an immediate family member or from a corporate subsidy. No borrowed down payments permitted.
  • Borrower required to have permanent resident or landed immigrant status, or a valid work permit.
  • Minimum 3 months of full time employment in Canada (professional employee relocation exempt from this requirement).
  • No mortgage delinquencies, previous bankruptcies or foreclosures.
  • All debts held outside of Canada must be included in qualification ratios.
  • Foreign rental income may not be used in qualification ratios.

 

Documentation Requirements

  • Standard documentation, which may be subject to review and approval by Canada Guaranty.
  • Confirmation of landed immigrant status or a valid permanent resident card.
  • Letter of employment and/or letter of employee relocation, where applicable.

 

Exclusions

  • Diplomats and other foreign appointed individuals.

 

 

Applicable Premiums

Loan-to-Value Ratio Single Premium Top-Up Premium
≤ 65%0.60%0.60%
65.01%–75%0.75%2.60%
75.01%–80%1.25%3.15%
80.01%–85%1.80%4.00%
85.01%–90%2.40%4.90%
90.01%–95%3.60%5.65%
NOTE: Mortgage Insurance premiums are non-refundable.

 


Last Updated: 02/15/2016

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