Self-employed borrowers

This program is designed for self-employed borrowers who are unable to provide traditional income verification but have a proven 2-year history of managing their credit and finances responsibly. Eligible borrowers typically own a small size business for a minimum of two years, which can be confirmed via a third-party arms length document. In addition, the borrower is required to declare their annual income, which should be reasonable based on the industry, length of operation and type of business.

RRSP down payment mortgage program

The Federal Government’s First-Time Home Buyers’ Plan (HBP) permits the use of RRSP funds for the purchase of a home by first-time buyers. (Refer to Revenue Canada document P150 (E) for further details concerning the program).

Withdrawal of RRSP Funds for down payment:
The current HBP permits the first-time home buyer to withdraw up to $25,000 from their RRSP to buy or build a home. The amount withdrawn is treated as a loan and must be repaid within a 15-year period, starting in the third year after the withdrawal. If the annual payment is not made it is treated as taxable income for that year.

Establishing an RRSP with borrowed funds and using the tax refund as the down payment:

  • The HBP also permits establishing an RRSP with borrowed funds and using the tax refund as the down payment. In this case, the home buyer contributes to an RRSP with borrowed funds and after a 90-day period collapses the RRSP and repays the loan. The home buyer receives a tax refund that may be applied to the purchase of a home.
  • We consider the refund an acceptable source of down payment provided that the tax refund is in the home buyer’s possession at the time of closing. The lender must also verify that the home buyer has proven liquid assets equal to at least 5% of the purchase price.


New to Canada mortgage program

Qualified homebuyers who have immigrated or relocated to Canada can qualify for Genworth default mortgage insurance.

Borrower qualification:

  • Must have immigrated or relocated to Canada within the last 36 months.
  • 3 months minimum full time employment in Canada (borrowers being transferred under a corporate relocation program are exempt)
  • Must have a valid work permit or obtained landed immigrant status.
  • For LTV’s 95% or greater, down payment must be from own resources. For LTV’s less than 95%, the remainder may be gifted from an immediate family member or from a corporate subsidy.
  • All debts held outside of the country must be included in the total debt servicing ratio (Rental income earned outside of Canada is to be excluded from the GDS/TDS calculation).


Home equity line of credit mortgage

A Home Equity Line of Credit (HELOC) product allows homeowners to take advantage of paying interest only for the first 5 or 10 years and enjoy the benefits, convenience and flexibility a revolving line of credit has to offer. In addition to the interest only payment option, borrowers benefit from diversifying fixed and variable interest rates, gain easier access to home equity and have the ability to make lump-sum payments with no penalty. This product is available for both purchase (up to 95% LTV) and refinance (up to 90% LTV) applications with amortization periods up to 35 years.