Back to Index

ACHIEVING THE DREAM

In this, our last of three columns directed to help new Canadians, like you, with some of the challenges they may face when buying a home, we will outline some of the products available and their benefit to you.

Genworth works with lenders, mortgage brokers, real estate agents and builders to make housing affordable and home ownership a reality for all Canadians. The company combines experience in mortgage default insurance with a strength in technology and an extraordinary commitment to quality to provide its customers with the high level of service they expect Genworth Financial Canada makes it possible for home buyers who have landed immigrant status or who have been transferred to Canada by their employer to purchase a home with as little as 10% down payment. If you’re purchasing a home and can make less than a 25% down payment, your mortgage will be classified as a high ratio mortgage. High ratio mortgage insurance guarantees that if a borrower fails to pay the lender on time, the payments are covered.

Genworth offers a competitive choice of flexible mortgage default insurance products for the purchase, renovation or refinancing of homes across Canada. It works with lenders to provide buyer seminars about home purchasing, and it offers a consultation service to help lenders work

with borrowers experiencing temporary difficulty in meeting their mortgage payment commitments.

Your lender will arrange for the mortgage default insurance on your behalf. Be sure to ask for a Genworth-insured mortgage. Another benefit of mortgage default insurance is that it enables borrowers to receive the same mortgage interest rates on high ratio mortgages as they do on

conventional mortgages.

There are two fees associated with mortgage default insurance: the underwriting fee and the mortgage insurance premium.

The underwriting fee is the cost associated with underwriting the mortgage insurance application.

Fees vary depending upon the work, and the type of mortgage; however, you can expect to pay between $75 and $300.

The mortgage insurance premium is paid once, at the time of closing, and may be added to the mortgage or paid separately. The standard rate varies from 0.50% to 2.75% of the mortgage amount depending on the size of your down payment and may vary for specialty products.

For new home buyers, there are many advantages to having a high ratio mortgage. A high ratio mortgage lets you put your money to work by building equity in a home sooner and by saving you the time it would take to save the money you need for a larger down payment. Furthermore, with

mortgage insurance through Genworth, you have flexibility. Even if you are able to make a large down payment, you may choose a high ratio mortgage because it will allow you to consider using the money you would have spent on a down payment for home improvements, an education fund or other investments.

Genworth’s Default Management program provides comfort for you. Should you experience financial difficulties, contact your lender as soon as possible. Genworth takes a common sense approach to default management that ensures that we work jointly with the lender clients who

may be experiencing financial difficulties to try to keep families in their homes.

Genworth Financial (NYSE: GNW) is a leading insurance holding company, serving the lifestyle protection, retirement income, investment and mortgage insurance needs of more than 15 million customers in 24 countries, including the U.S., Canada, Australia, the U.K. and more than a dozen European countries.

Genworth Financial Canada is the only private sector supplier of default mortgage insurance in Canada. Genworth works with lenders, mortgage brokers, real estate agents and builders to make housing more affordable and home ownership more accessible anywhere in Canada. The

company combines global experience in mortgage default insurance with strengths in technology and Six Sigma Quality to deliver innovation to the mortgage marketplace.

Additional information about Genworth Financial Canada is available at www.genworth.ca, by calling the National Underwriting Centre toll free at 1-800-511-8888 or through mortgage lenders.