January 26 2022
Buying a home is an exciting milestone, but it's also one of the biggest financial investments you’ll ever make. With that in mind, it’s important that as a new homeowner you are prepared and protected should any unexpected issues arise. An important step many buyers should consider is purchasing title insurance before their home closes.
A title insurance policy protects homeowners and lenders against any issues related to the title or ownership of a commercial or residential property. It provides coverage for any title-related risks associated with real estate transactions and guarantees the buyer’s legal safety against any errors or fraudulent activity. This can include:
Title insurance also ensures that no other mortgages can be registered without permission from a lawyer and the financial institution that holds the mortgage itself.
Title insurance coverage lasts as long as you own the property. Most policies extend coverage to your heirs through a will, to a spouse in the event of a divorce or to children when the property is transferred from their parents.
You can purchase title insurance through your lawyer or by contacting your insurance company. Some of the top licensed providers in Canada include:
While it’s not mandatory, many lenders encourage home buyers to purchase title insurance before their home closes. Given that this is a large financial investment, this extra layer of protection never hurts.
Title insurance is typically categorized as a closing cost and has a one-time premium of roughly $200 to $300, which depends on the policy, the type of property and it’s value.
At Homewise, our goal is to set you up for success at every step of the home buying and mortgage process and that includes accounting for additional, unexpected costs. Apply online in just 5 minutes and one of our dedicated Mortgage Advisors will help you get started on the right foot.
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