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Canada Guaranty Supports Government Mortgage Rules Set by the Department of Finance

Product Guidelines to Reflect New Mortgage Insurance Parameters
Effective July 9, 2012

Consistent with the new mortgage insurance parameters announced by the Government of Canada on June 21, 2012, Canada Guaranty will be implementing the following guideline changes effective Monday, July 9, 2012.

  • Maximum Amortization Reduced to 25 years
    Mortgage loans greater than 80% loan-to-value (LTV) will be subject to a maximum amortization of 25 years (previously 30 years). 
  • Refinance Amount Reduced to Maximum 80% LTV
    Canada Guaranty’s Refinance Advantage™ will be reduced to maximum 80% LTV (previously 85% LTV). 
  • Maximum Qualifying Ratios Fixed at 39% GDS and 44% TDS – Where Applicable
    Further to the prudent practices already employed by Canada Guaranty, when qualifying applicants based on overall strength, a maximum gross debt service (GDS) ratio of 39% and total debt service (TDS) ratio of 44% will not be exceeded, where applicable.

    Based on credit score, the following maximum GDS and TDS ratios will apply:
    Credit Score <680 = 35% GDS / 42% TDS
    Credit Score >680 = 39% GDS / 44% TDS

  • High Ratio Mortgage Insurance Not Eligible for Properties with Purchase Price of $1 Million or Greater
    Mortgage loans greater than 80% LTV with a purchase price (or as-improved value for Purchase Advantage Plus™ improvement loans) of $1 million or higher will no longer be eligible for mortgage default insurance.

For more information about the new mortgage insurance parameters and exceptions that apply, please contact your dedicated Account Executive or speak with a member of our National Underwriting Team at 1.877.244.8422. To review the official Government of Canada release, issued on June 21, 2012, please click here.

Canada Guaranty Mortgage Insurance Company
1 Toronto Street, Suite 400, Toronto, ON  M5C 2V6 | 1.877.244.8422

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