Progress Draw Advantage

Home Improvement / New Construction

Progress Draw Advantage™

The Progress Draw Advantage program is designed to assist borrowers who are constructing a new home or making major renovations to an existing property. Both contractor-built and self-built projects are eligible under the insured Progress Draw Advantage program.

Download PDF Download PDF

Transaction Types

  • Purchase transactions.
  • Portable eligible.

NOTE: Builder loans are not eligible.


  • Maximum 25 years.

Credit Score Requirements

  • Strong credit profile required.

Loan-to-Value Criteria

  • Maximum 95% LTV for Purchase: 1-2 units
    • 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.]
  • Maximum 90% LTV for Purchase: 3-4 units

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

Interest Rate Types

  • Fixed, standard variable, capped variable and adjustable rate mortgages permitted.
  • Borrower(s) must qualify at an interest rate that is the greater of the contract mortgage rate plus 2%, or 5.25%.

Property Types

  • Maximum property value must be less than $1,000,000.
  • Maximum 4 units with 1 unit owner-occupied.
  • Single-family detached and semi-detached homes.

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 a close family member.
  • No third-party or non-occupying guarantors.
  • Maximum debt service ratios: GDS 39% / TDS 44%

Basic Service (Lender Managed)

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

Full Service (Insurer Managed)

  • Canada Guaranty orders appraisal from approved appraiser list.
  • Canada Guaranty orders all inspections and authorizes required draws.
  • Canada Guaranty will pay for up to 4 progress advance inspections.

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.
  • Lender is responsible for managing holdbacks.

Applicable Premiums

Loan-to-Value Ratio Single Premium Top-Up Premium
≤ 65% 0.60% 0.60%
65.01%–75% 1.70% 5.90%
75.01%–80% 2.40% 6.05%
80.01%–85% 2.80% 6.20%
85.01%–90% 3.10% 6.25%
90.01%–95% 4.00% 6.30%

NOTE: Mortgage Insurance premiums are non-refundable.

Last Updated: 02/2024