AIG UNITED GUARANTY CANADA UNVEILS PRODUCT LINE-UP

Mortgage Insurer Launches New Line of Mortgage Insurance Products

TORONTO – AIG United Guaranty¹ Mortgage Insurance Company Canada, which provides mortgage guaranty insurance designed to increase home ownership, has introduced a product lineup that includes new Mortgage Insurance options as well as enhanced standard programs to benefit the Canadian housing market.

According to President and CEO Andy Charles, "We have seen significant activity in the Canadian mortgage insurance industry over the past six months in anticipation of increased competition. New product introductions, along with the elimination of certain application fees, have greatly benefited Canadian consumers. I am pleased to announce that AIG United Guaranty has developed additional options for the Canadian market, with a comprehensive suite of products and technology designed to create additional value for Canadian consumers."

AIG United Guaranty’s new products for the Canadian marketplace will help to facilitate home ownership by reaching more consumers with insurance for a wider range of mortgage products than is currently available.

According to Brian Bell, Vice President of Corporate & Product Development, "We have been able to develop a new product line-up that positions AIG United Guaranty as the leading full-service mortgage insurance provider within the Canadian marketplace."

The new products offered by AIG United Guaranty include:

1. • Advantage 100   ^{– This product allows borrowers with strong credit to purchase a home with no down payment at a mortgage insurance premium that is lower than what is currently available in the marketplace.}
2. ^{• Advantage 97  – This option enables borrowers to purchase a home with as little as 3% down payment.}

^{AIG United Guaranty Unveils Product Line-up}

1. ^{• Flex 97 Advantage sm – This product features a flexible down payment option, allowing borrowers with a strong credit history to access 3% equity from sources not covered in our standard down payment programs.}
2. ^{• Equity Assist sm – Created for borrowers whose credit scores have been affected by adverse conditions, this program broadens access to standard lending channels for borrowers. The result is more affordable insurance premiums for this customer segment.}
3. ^{• Rental Advantage – This option allows borrowers to purchase investment or rental properties – using a streamlined process designed to save costs – with as little as 10% down.}
4. ^{• Longer Amortizations: Consumers now have the choice of 30-, 35- and 40- year amortizations on certain products.}
5. ^{• Low Doc Advantage – This program allows self-employed or commissioned sales borrowers to purchase a home with as little as 5% down. The program also provides cost savings to consumers who use a 10% down payment.}
6. ^{• Identity theft insurance coverage – AIG United Guaranty’s voluntary lender opt-in process for the no-cost identity theft coverage will provide additional protection and value to Canadian consumers.}