Homebuyer 95 Program

Buyers must owner occupy at least one unit of the property to qualify for this program.

Acceptable Loan Purpose and Applicable Loan-to-Value Limits

Purchase Transactions:

• 1 and 2 units: 95% LTV
• Property value ≤ $500,000 – 5% down payment required
• Property value > $500,000 and < $1,500,000 – 5% down payment required up to $500,000, with an additional 10% down payment on the portion of the home value above $500,000
• 3 and 4 units: 90% LTV

Loan Security

• First and second mortgages

Eligible Properties

• Maximum 4 units where 1 unit must be owner occupied
• New construction covered by a Lender approved New Home Warranty Program*
• Existing resale properties
• Readily marketable residential dwellings, located in markets with demonstrated ongoing re-sale demand
• Estimated remaining economic life of the property should be a minimum of 25 years
• In addition, for 3 and 4 units, the property must meet the following criteria:
  • Municipal zoning
  • Fully self contained units

_{*For new construction properties in the territories (Yukon, Northwest and Nunavut Territories) where New Home Warranty is not an option, Lenders must obtain either the occupancy permit or a third-party report from a qualified professional such as: an inspector, architect or engineer. The qualified professional must carry the appropriate liability insurance and confirm construction in compliance with applicable bylaws and regulations.}

Maximum Property Value

• > 80% LTV: Property value must be less than $1,500,000
• ≤ 80% LTV: Property value must be less than $1,000,000

Qualifying Terms and Interest Rates

• Fixed, standard variable, capped variable and adjustable rate mortgages are permitted
• Maximum interest rate term of 25 years
• The qualifying interest rate is the greater of the contract rate plus 2 % or 5.25 %.

Amortization options

• Up to 30-year amortization
• For greater than 25-year amortization LTV must be >80%, and one of the following applies.
  • A minimum of one applicant must meet first-time homebuyer’s criteria; OR
  • Purchase of a new constructed home.

Premium Rate

The premium payable will be the lesser of the premium as a % of the total new loan amount or the premium as a % of the top -up portion on the additional loan amount (if existing insured) based on the rates below:

The mortgage insurance premium is non-refundable, paid at the time of closing and may be added onto the mortgage.

Borrower Qualification

Income and Employment

• Standard income / employment verification requirements apply.

Credit

• > 80% LTV: At least one applicant is required to have minimum credit bureau score of 600.
• ≤ 80% LTV: At least one applicant should have a minimum recommended credit bureau score of 680.

Down Payment

Qualified home buyers may use traditional down payment sources including personal savings, RRSP withdrawal, a non-repayable gift from an individual related to the borrower through a familial or legal relationship, sweat equity, existing home equity, proceeds from sale of property. Government grants may be considered if pre -approved by Sagen.

GDS / TDS Guidelines

Documentation Requirements

• Standard documentation requirements apply.
• Sagen may request that the Lender provide a copy of the required documentation on a case-by-case basis.
• For 3 and 4 unit properties Sagen requires that the Lender obtains a general assignment of rents and leases or include this requirement in the Standard Charge Terms.

Portability

• Mortgage insurance is portable, so homebuyers can take advantage of a Lender’s portability plan. For further details, refer to the Portability Feature product overview.

Assumptions / Assignments

• Mortgage is assumable subject to meeting Lender guidelines.

Eligible Products*

• Progress Advance Program (Maximum 2 units)
• Purchase Plus Improvements Program
• Family Plan Program
• New to Canada Program
• Vacation / Secondary Homes Program (Type A Properties)
• Second Mortgage Program

For specific underwriting guidelines related to the above eligible products, please refer to the applicable product overview.

Ineligible Products

• Business for Self (Alt. A) Program
• Borrowed Down Payment Program
• Secondary Homes Program (Type B Properties)
• Investment Property Program