What is Title Insurance and is it Good for Me?

What the heck is title insurance?

Is it good for me or the bank?

What does it really cover?

Title insurance is one of the most misunderstood items we deal with amongst our mortgage consumers. Let’s begin by defining what it does. When a consumer purchases or refinances a home, they are signing to get title or owners of that specific dwelling. Having title insurance protects the owners and lenders in case there is a problem with the ownership of the home and in most cases speeds up the process without slowing down the process.

What Does Title Insurance Really Cover?

• It replaces a survey
• Any work orders from the city
• Liens
• Construction liens which are unpaid contractor bills
• Zoning violations
• Easements
• Fraud
• Forgery

Fraud was the reason I put title insurance on my own home. An elderly lady in Toronto tried to sell her mortgage free home when she realized somebody had put a $600,000 mortgage on it. This was enough to make me act to protect my home.

Pros and Cons of Title Insurance

Pros

• Inexpensive to purchase (between $250-$400)
• Replaces an expensive survey
• One-time fee (as long as you do not refinance or sell your home)
• Can be purchased after

Cons

• Must be repaid if you refinance or move
• Must ensure the title insurance covers your needs and not only the lenders
• Some lenders require separate insurance for them and themselves (more cost)

Having title insurance in Ontario may not be mandatory, but it should be a part of owning your home. For the inexpensive price and the possible repercussions, the peace of mind of your home as a castle is priceless

Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

Robert Floris has been in the mortgage industry for 30 years, including working as a Sales Manager for a major chartered bank. Over his career, he has personally lent over 1 billion dollars and proudly continues to advise and tutor his valuable clients.

Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215. Alternatively, you can contact Robert here.

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