self employed mortgage optionsGenworth Stated Income Premiums

One of the key products we offer is the Genworth Alt A, for business for self clients. This product is designed for clients who make good money, however due to being self employed they are able to write off significant expenses. These write offs reduce the clients income, sometimes to a point where they are no longer able to qualify for the mortgage which they can easily afford. This product as is also referred to as the Stated Income Mortgage.

These are the premiums added to your mortgage for the Genworth stated income product. These loans are also insured by Canada Guaranty.

Loan to Value Purchase Premium Rate Refinance Premium Rate Top Up Premium
Up to 65% 0.90% 0.90% 1.75%
65.01% - 75% 1.15% 1.15% 3.00%
75.01% - 80% 1.90% 1.90% 4.45%
80.01% - 85% 3.35% N/A 6.35%
85.01% - 90% 5.45% N/A 8.05%

These premiums for the stated income mortgage are quite a bit higher than the standard CMHC or Genworth premiums, however the loans also take on a significantly higher risk due to the clients not needing to show their personal incomes. For most of our self employed borrowers, the cost is well worth it to get the home they want today.

Genworth Self Employed Insurance Requirements

  1. Maximum loan to value is 90%.
  2. Maximum 2 unit property, with one unit being owner occupied.
  3. Property value must be under $1,000,000.
  4. Maximum loan amount is $750,000 in Toronto, Vancouver and Calgary; $600,000 everywhere else in Canada.
  5. Maximum amortization is 25 years.
  6. 2 years minimum self employed.
  7. Credit score minimum is 650 on deals over 80% ltv.
  8. Client must have 2 credit lines for a minimum of 2 years.
  9. At least 5% of down payment must come from borrowers own resources.

As mentioned, these are the highest risk loans Genworth insures. For this reason, the requirements are more stringent than a typical loan and the paperwork can be a bit more tedious. For most business for self clients however, qualification by traditional standards can be very difficult to for the stronger client there is an option.

Non Starters for the Stated Income Insurance

There are a few issues that will get your deal declined immediately with Genworth. Even if you meet the rest of the requirements, these problems will kill your deal:

  • Previous Bankruptcy.
  • Missed payments on your credit bureau in the past 12 months.
  • Owning income taxes to Revenue Canada.
  • Already having a stated income mortgage with Genworth.
  • No reported missed mortgage payments in the past 7 years.

Genworth is looking for clients with strong credit history with this product. If you have had any major issues in the past, qualification is going to be difficult.