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Housing Loan Guarantee Program

The Housing Loan Guarantee Program offers a benefit to employees of the University who are purchasing or refinancing a home. The benefit applies to the full-time faculty or CPM staff member who have a down payment of at least 10% of the appraised value of a home but do not have the preferred down payment of 20%. The University's guarantee on a portion of the overall financing allows an employee to qualify for a conventional mortgage thereby eliminating the requirement to pay Canada Mortgage and Housing Corporation insurance premiums. This program is sponsored jointly by Finance and Human Resources.

Eligibility Criteria

  1. the employee must have a minimum down payment toward the property of 10% of the appraised value;
  2. the property must be used as the employee’s primary residence;
  3. the employee must meet the eligibility criteria of the financial institution providing the mortgage;
  4. the employee must finance their mortgage and the loan guarantee through the Bank of Montreal York Lanes Branch;
  5. the employee must pay the legal fees associated with the University guaranteeing the loan to the University’s solicitor, McCarthy Tétrault; and
  6. the loan guarantee is subject to approval by York and requires the employee to complete and submit an application form to the Assistant Comptroller.

How it Works

The financial institution provides a loan repayable on demand ("demand loan") to the employee for the difference between what the employee has as a down payment for the property in excess of 10% of the appraised value up to the 20% threshold required for a conventional mortgage. The University provides a guarantee for the demand loan to the financial institution. The demand loan is paid separately from the mortgage. Payment terms on the demand loan are negotiated with the financial institution subject to a maximum 20-year amortization period. The interest rate on the demand loan is variable and is set at the bank’s prime lending rate. The maximum demand loan as of January 1, 2023 is $225,200 and will be adjusted by the Toronto Consumer Price Index in January of each year.


The Housing Loan Guarantee Program enables eligible employees to make a down payment equal to 20% of the appraised value, which eliminates the requirement for eligible employees to pay the insurance premiums associated with a high ratio mortgage required by the lender and the Canada Mortgage and Housing Corporation, which can be in the range of 1.5% to 2% of the total sum borrowed. By way of example, on a mortgage of $300,000.00 this translates to a savings of between $4,500 to $6,000 for the employee.

Currently, Bank of Montreal participates in this program by offering preferential interest rates to York University employees at its York Lanes branch. Rates may vary with personal credit and type of arrangement.

For further information or an application please contact the Office of the Comptroller:

Susan Sidiropoulos, Assistant Comptroller at