Mortgage Glossary – G

Genworth Financial – Formerly known as GE Capital. Genworth is the CMHC insurance alternative in Canada. Genworth provides banks/lenders with mortgage insurance. This insurance is generally required when you have less than 25% equity or down payment or there is a Loan to value greater than 75%. This insurance is paid by the property owner in advance but usually added to the mortgage amount.

Gift From a Family Member – money that is given to another family member for the purchase of a home. Gifts can not be borrowed and it is understood that the gift will at no time be repaid.

Gift Letter – A document required from lenders to prove that gifts are not being borrowed.

Gross Debt Ratio or GDS – The ratio of the monthly mortgage payment in total (PIT — Principal, Interest and Taxes) divided by the gross monthly income.

Gross Income – The amount of money received from employment before income tax is deducted.