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 & LTV Criteria

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

90.01%-95%:

• 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.

AND

• 6 consecutive months of 2 verifiable monthly payments (i.e. utilities) in good standing.

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

Property Types

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

Borrower Qualifications

• Must have immigrated to Canada within the past 3 years.
• Down payment must be from borrower’s own resources.
• Borrower required to have permanent resident or landed immigrant status.
• Minimum 3 months of full time employment in Canada (professional employee relocations are exempt from this requirement).
• Applicants with Non-Permanent Resident status (i.e. foreign relocation or valid work permit) will be reviewed on a case-by-case basis.
• 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.
• GDS 35%; TDS 40% from 90.01%–95% LTV.
• GDS 35%; TDS 42% up to and including 90% LTV.

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