Author: Genworth Financial News Release
Article Date: October 10, 2006
Toronto, October 10, 2006 – Genworth Financial Canada, The Homeownership Company, will now offer insurance on mortgages that are amortized over 40 years. The extended mortgage period reduces a borrower’s monthly payment, enabling more buyers to afford a home of their own and increasing the choices available to them. For example, buyers could save as much as $190 per month on a $200,000 loan at 6 per cent interest, to $1,090 from $1,280 on a 25-year mortgage. "As home prices continue to escalate, there is the need for more flexible payment options to make the dream of homeownership a reality for more Canadians," said Peter Vukanovich, president of Genworth Financial Canada. "Genworth is committed to providing innovative and responsible products to help Canadians become homeowners sooner." The new 40-year amortization option is designed to give homebuyers the flexibility of reducing their monthly mortgage payments for the initial years of homeownership. The homebuyer can reduce the number of years it takes to pay off their mortgage by utilizing the full range of available prepayment options. Genworth makes low down payment loans possible by protecting mortgage lenders against the risk of borrower default. Insurance for loans under the new 40-year mortgage amortization program will include a 0.20% premium surcharge for every five years of amortization beyond the traditional 25-year mortgage period. Standard borrower requirements related to income, down payment and credit worthiness apply. Genworth will offer the extended amortization feature on selected insurance products. See your mortgage professional about which products qualify or visit Genworth’s website at www.genworth.ca About Genworth Financial Canada: Genworth Financial Canada, the Homeownership Company, works with lenders, mortgage brokers, real estate agents and builders to make homeownership more affordable and accessible throughout Canada. The company combines global experience in mortgage insurance with technological and service leadership to deliver innovation to the mortgage marketplace. Additional information about Genworth Financial Canada is available at www.genworth.ca or through mortgage lenders.
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