New to Canada

Maple Leaf Advantage™

Canada Guaranty’s Maple Leaf Advantage provides new immigrants, who have limited documented credit history, the opportunity to purchase a home with as little as 5% down.

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Transaction Types

• Purchase transactions.
• Purchase Advantage Plus™ eligible.
• Progress Draw Advantage™ eligible.
• Portable eligible.

Amortization

• Maximum 25 years; or
• Maximum 30-year amortization for owner-occupied homes if LTV > 80% and the borrower is either: (i) a first-time homebuyer or (ii) purchasing a newly constructed home.

LTV Criteria

• 95% for Purchase: 1-2 units
  • Purchase Price ≤ $500,000: Minimum 5% down payment required.
  • Purchase Price > $500,000: 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% for Purchase: 3-4 units

Credit Requirements

• OPTION 1: International credit bureau.
  OR
• OPTION 2: 12 months rental payment history in Canada, confirmed via letter from the borrower’s landlord and supported by 12 months of bank statements confirming rental payments; AND
• At least one Canadian utility payment confirmed via letter from the service provider or 12 months of bill statements confirming regular payments.
  OR
• OPTION 3: 12 months verifiable bank statements from a recognized Canadian financial institution or a financial institution from the country of origin confirming satisfactory savings and repayment habits. For 90% LTV or less, 6 months verifiable bank statements may be obtained.
  OR
• OPTION 4: A letter of reference from the borrower’s financial institution from the country of origin confirming a minimum of 6 months satisfactory banking relationship.

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 if LTV < 80%; or
  • $1,500,000 if LTV > 80%.
• Maximum 4 units, with 1 unit owner-occupied.
• Resale or new construction.

Borrower Qualifications

• Must have immigrated to Canada within the last 5 years.
• Minimum 5% down payment from borrower’s own resources or gifted from a close family member or from a corporate subsidy. No borrowed down payments permitted.
• Borrower required to have permanent resident status/landed immigrant status, or a valid work permit.
• No mortgage delinquencies, previous bankruptcies, or foreclosures.
• All debts held outside of Canada must be included in qualification ratios.
• Foreign rental income may not be used in qualification ratios.
• Maximum debt service ratios: GDS 39% / TDS 44%
• All borrowers must be permitted to purchase residential property in Canada in accordance with the Prohibition on the Purchase of Residential Property by Non-Canadians Act.

Documentation Requirements

• Standard documentation, which may be subject to review and approval by Canada Guaranty.
• Confirmation of landed immigrant status, a valid permanent resident card, or a valid work permit.
• Letter of employment and/or letter of employee relocation, where applicable.

Exclusions

• Diplomats and other foreign appointed individuals.

Applicable Premiums

NOTE: Mortgage insurance premiums are non-refundable.

Last Updated: 12/2024