Every person has a dream home, no matter if it’s a small or a big one! And, there are fewer people getting the opportunity to buy that.
Now, picture this: You want to sell your old home to have the amount required to purchase your dream house. In both cases, you don’t want any problem, right? But, what if anything arises, like title defects? It can impact the whole home buying and selling process.
Need a solution? Here is where the power of mortgage title insurance lies!
Do you wonder how, what it is, or why you need it? In today’s blog, you will surely get all the answers. Have a look!
What Is Mortgage Title Insurance in Canada?
Mortgage insurance is the best way to stay safe from financial losses whenever there are problems or defects with the property title, especially during a home purchase and sale. For example, if there’s anyone else who owns the home you want to sell or buy, it can prevent the deal from happening, leading to a huge loss, which mortgage title insurance can protect you against.
How Does Mortgage Insurance Work?
Well, mortgage title insurance isn’t mandatory in Canada. In fact, there’s no guarantee that you will face no issues with property titles. Still, you can have peace of mind during the home-buying and selling process, whether you are the buyer or seller. Let us tell you how!
See, admit it or not, it’s challenging to identify any title defects on the property, no matter how efficiently mortgage title insurance companies perform the title search. If the details are not centralized, the experts can miss vital evidence. Even after buying or selling a home, the liens on the property can be discovered, while the deal can even be invalidated due to title defects. Ultimately, both the lender and buyer face financial loss!
By leveraging mortgage title insurance, both buyer and seller can reduce the chances of financial losses from title defects. For instance, if a title defect arises, the lender will fail to sell the property, while the buyer may lose his ownership interest in that home later. In this case, both can protect their interests by owning mortgage insurance. It covers the following risks:
- Different title defects, such as errors in the title chains, forged documents, linens
- Government claims regarding unpaid assessments and taxes
- Creditors or previous property owners claiming their interest in the property you are buying or selling
- Hidden restrictions or easements
How Much Does Mortgage Title Insurance Cost?
To be honest, it’s a comparatively inexpensive investment since you have to pay just once at the time of closing. There’s no monthly premium! But, make sure you check different mortgage title insurance companies before purchasing one since the cost will vary from one to another.
Mortgage title insurance gives peace of mind and confidence to both buyers and lenders that their property title is clear. Thus, you can protect yourself from financial losses while saving time in the case of property title disputes.
Now, if you want to obtain mortgage title insurance in Canada, we can help. At Canada Title Monitoring, we specialize in providing added protection to property owners in the event of home buying and selling through title insurance. Also, you can get our assistance with title monitoring, property valuation and changes that our experts offer using Title Tracker (SAAS software).