Transaction Types

• Purchase transactions.
• Portable eligible.
• Single or multiple advances are permitted and may be managed by Lenders. To be eligible for Canada Guaranty managed draws, the improvement amount should be greater than 10% of the as-improved value.

Amortization

• Maximum 25 years.

Loan-to-Value Criteria

• 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.]
• 90% LTV for Purchase: 3–4 units

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.

Lending Value

• Lending value is based on the lesser of the improved property value or the purchase price, plus direct costs associated with the improvements.
• Full appraisal required for improvements exceeding 20% of as is value or $60,000.

Borrower Qualifications

• Gifted down payment from a close family member is acceptable.
• Borrower must provide the lender with quotes for the work to be completed.
• Standard underwriting guidelines apply.
• Maximum debt service ratios: GDS 39% / TDS 44%

Documentation Requirements

• Standard documentation.
• Lender is responsible for managing holdbacks.
• Lender to confirm improvements are completed.

Applicable Premiums

NOTE: Mortgage Insurance premiums are non-refundable.

Last Updated: 02/2023