There have been some major changes to qualification guidelines offered by Genworth Financial in response to the changes in the Canadian economy and housing markets. We expect that CMHC will soon follow suit and match these new guidelines.
Here is a breakdown of the changes:
1. New Recommended Credit Scores High Rise Condo’s (4+ Floors):
5%-10% down: 700 beacon score (no previous minimum)
10%-15% down: 660 beacon score (no previous minimum)
2. New Recommended Credit Scores for Refinance:
5%-10% equity: 700 beacon score (increased from 650)
10%-15% equity: 660 (increased from 600)
3. The New Recommended Maximum GDS/TDS Ratio is 35/42% for all Credit Scores and All Products. Previously, if an applicant had a credit score over 680 they could qualify with ratios of GDS/TDS 44/44%.
4. Investment Properties (Rentals) and the Credit Assist Program are no longer Eligible for High Ratio Mortgage Insurance.
5. The New maximum Loan-to-Value and Recommended Credit Scores for the Business for Self (Stated Income) Program are as follows.
Loan to Value Recommended Credit Score
90.01%-95% No longer available!!!!
85.01%-90% 700+ (previously 650)
80.01%-85% 680+ (previously 650)
These changes take effect on April 18th 2009. If you have any questions/concerns or require clarification please contact me directly.