Canada Guaranty

Transaction Types

• Purchase transactions.
• 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.

Loan-to-Value Criteria

• Maximum 95% LTV for Purchase: 1–2 units
• Maximum 90% LTV for Purchase: 3–4 units
• Maximum 85% LTV for Refinance: 1–4 units

Property Types

• Maximum 4 units, with 1 unit owner-occupied.

Contractor-Built Criteria

• Title to land must be in borrower’s name on or before closing.
• Contractor and home are registered with an approved New Home Warranty program.

Self-Built Criteria

• When the borrower acts as their own general contractor, individual contracts with sub-trades must each be less than 50% of total construction cost.

Borrower Qualifications

• Down payment is from borrower’s own resources or gifted from an immediate family member.
• No third-party or non-occupying guarantors.
• Up to and including 679 credit score: GDS 35%; TDS 42%
• 680+ credit score: TDS 44%

Lender Managed Draw Requirements

• Lender orders appraisal from Canada Guaranty’s approved appraiser list.
• Lender orders inspections and authorizes draws according to established lender policy.

Documentation Requirements

• Title to land must be in borrower’s name on or before closing.
• Lender obtains plans, cost estimates, building contracts, and permits.
• Lender reviews construction cash flow requirements against draw schedule and addresses shortfalls.
• Maximum construction period of 12 months from first advance.
• Lender is responsible for managing holdbacks.

Applicable Premiums