Canadian Mortgage Rates

Alimony & Child Support

100% may be used provided income represents less than 30% of total income and borrower has demonstrated receipt, through a T1 General, for a minimum of 1 year. Otherwise a maximum of 50% will be used.

Bankruptcy

An applicant with a prior bankruptcy will be considered for mortgage insurance, up to a maximum LTV ratio of 95%, provided that the bankruptcy has been discharged for at least 2 years and they have at least 2 years of satisfactory re-established credit. Employment and income should be stable and debt ratios must be in line. Previous bankrupt borrowers are ineligible for the following products; Cashback, Alt A, Vacation property and Refinance applications. Borrowers who have had a bankruptcy in the last 7 years that resulted in a loss on debts secured by real estate are ineligible for mortgage insurance.

Car Allowance

100% may be used to offset a car loan or lease payment provided that:

• the car allowance is a taxable benefit
• the applicant has been receiving the car allowance for a minimum of 1 year

Child Tax Benefit/Family Allowance

Income may be used for qualification purposes provided applicants meet the following criteria:

• 100% may be used for the applicant’s children who are 18 years old and under
• not permitted to be used for applicant’s children who are older than 18 years

The lender will be required to have verification of the child’s age and income stream in the file. Age and income stream can be verified with the following documentation:

• Personal income tax returns
• Copy of birth certificate
• Government slip
• Bank statement showing automatic deposit

Foster Care Income

Income will be considered subject to the following requirements:

• The caregivers must have at least 2 years experience as foster parents
• Income letter or contract from the ministry and pay stub are the only acceptable forms of proof of income
• Letter from Social Services confirming tenure and current status
• Maximum number of children should not exceed 6 (including any of their own children)
• The applicants must live on site
• If foster care income accounts for more than 50% of applicants’ total income, we will require a minimum of 10% down payment
• Maximum LTV is 95%

Gifted Down Payments

Gifted down payments from immediate family members can be used provided they are properly verified, are non-repayable and all other characteristics of the borrower are acceptable. Gifted down payments are not required to be on deposit until time of closing.

Guarantor Income

If the guarantor occupies the property, the income will be considered for qualification purposes provided the guarantor is a direct family member. If the guarantor does not reside in the property, Genworth will consider income for the GDS/TDS calculation provided the guarantor is a direct family member and resides in the region where the property is located.

Immigrants to Canada

Qualified homebuyers who have immigrated to Canada, or have been transferred to Canada by an employer can qualify for a mortgage with as little as 5% down payment using Genworth’s New To Canada program. Applicants must have immigrated and/or relocated to Canada in the past 36 months, be employed for a minimum of 3 months in Canada, have a valid work visa or obtained landed immigrant status as minimum qualifications for the program. Please refer to the New To Canada Program Overview at www.genworth.ca for complete details.

Parental Leave

Full salary is acceptable for qualification purposes. A letter from the employer is required indicating the position the person is returning to, the return date, and the salary/income upon return.

Part time

100% of permanent part-time income will be considered. Up to 100% of a second job income will be considered if borrower can demonstrate a minimum 2-year history supported by income tax assessments or T4’s.

Overtime

100% may be used provided income represents less than 25% of total income and borrower has demonstrated receipt for a 2-year period.

Qualifying Rates

The qualifying interest rate used to calculate the gross debt service ratio (GDSR) and total debt service ratio (TDSR) will be determined as follows:

• For loans with a fixed rate term of five years or more, the qualifying interest rate will be:
• the contract rate
• For loans with a fixed rate term of less than five years and for all variable rate mortgages, the qualifying
• interest rate is the greater of:
• the contract rate, or
• the benchmark rate*
• For multi-component mortgages, each component must be qualified using the applicable criteria above.

* The benchmark rate (5-yr conventional mortgage rate) is published weekly by the Bank of Canada in series V121764 and can be found via the following link: http://www.bank-banque-canada.ca/en/rates/interest-look.html

Rental Income

For owner-occupied 2-4 unit properties, 50%* of the gross rental income from the subject property may be included in the borrower’s gross annual income.

• TDSR: Principal + Interest + Other Obligations
• Gross Annual Income + 50% of Gross Rents*

* For 2-unit properties in Victoria and Vancouver CMA’s, 100% of the gross rental income may be included in the borrower’s gross annual income.

Seasonal Workers

100% of Employment Insurance income for seasonal workers will be considered provided the lender has verified that the applicant has been employed for at least 3 years, the income is regular, recurring and continuous and 70% of the income comes from the salary paid by the company and no more than 30% comes from the employment insurance. Income is calculated based on the lesser of the 3-year average income or the last year’s income. The income must be validated with income tax returns or notice of assessments.

Self Employment

Any individual who has ownership interest in a company and is paid based on company performance, or whose ownership interest is 25% or greater, is considered to be self-employed. Commissioned borrowers and other owner/operator situations, such as taxi drivers and truck drivers are also considered self-employed.

Self-Employed/Provable Income

Income must be verified by 2-year’s financial statements or tax assessments. Genworth permits lenders to gross-up the total income (line 150 Revenue Canada Notice of Assessment) by up to 15%. Income gross-up is subject to lender guidelines. The lower of the average net income for the previous 2 years or the most recent year are to be used for qualification purposes.

Self- Employed Stated Income

Self-employed borrowers and commissioned sales people who cannot provide traditional income verification may qualify for a low down payment mortgage for purchase or refinance through Genworth’s Business For Self (Alt A.) Program. This program recommends a minimum documented self-employed tenure of 2 continuous years and minimum credit requirements apply. Please refer to our Genworth Business For Self (Alt A) Program Overview for complete guidelines at www.genworth.ca

Treatment of Pension and Disability Non-Taxable Income/Gross Income

For borrowers whose income is not taxed at the source, income may be grossed-up on a two-tiered approach:

• Applicants with non-taxable income less than $30,000, are eligible to gross-up their income by 25%
• Applicants with non-taxable income greater than $30,000, are eligible to gross-up their income by 35%

Treatment of U.S. Income

U.S. income will be considered at the current conversion rate. This applies to borrowers living in Canada and paid in U.S. funds.

Mortgage Process

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