Everything That You Need to Know About Title Insurance
When you are in the process of buying a home, the mortgage rates are not the only thing that you should think about. Though the CMHC insurance is needed by those who put in a down payment lesser than 20%, a lot of people do not know about the need, importance and benefits of a title insurance.
What is meant by ‘Title Insurance’?
When you are applying for a Canada mortgage, you have the option to add title insurance to your account and secure the property in your name. Though it is not mandatory, there are several important advantages of opting for title insurance for your Canada mortgage.
Simply put, title insurance protects the ownership of your property against any kind of fraud. There are various areas where a having title insurance can help you, such as:
- The title insurance will protect you from any fraudsters who attempt to steal your property or remove equity from your account.
- Having title insurance will ensure that you are not held accountable for any previous misuse of the property or land.
- If the former owner of the house did not pay the complete property tax amount, the title insurance will ensure that these added costs do not add up on your account.
- As it is a type of insurance, it also helps protect against certain issues on zoning, any set-back desecrations, pending work-orders and any other infringement, thus making your Canada mortgage a secure and bankable investment in your part.
Why Should a Homeowner Go for Title Insurance?
Though it is not absolutely necessary to go for title insurance, most experts advise home owners to secure their title when making a lifelong investment in real estate. If you opt out for title insurance, you can get your solicitor’s opinion on the title. However, it cannot provide any viable assurance or protection against any fraud on your property in the future. Moreover, even if you do not want a title insurance for yourself, your lender may ask you to get one.
There are a variety of options and different rates available for title insurance these days, so make sure that you research and select the best one for your property!
How Can One Apply for Title Insurance?
When you are ready to buy your home and are done selecting a decent mortgage rate, you can opt for title insurance through your lawyer or legal advisor during the purchase process.
Title insurance or policies are also required by lenders in case you decide to refinance your home. This type of title insurance is termed as lender policy, and is a form of protection for your lender against any fraud on your title.
All in all, if you wish to secure your future through real estate and are putting down a hefty sum of your hard earned cash as a down payment, it is always a good idea to secure it all through a reliable title insurance. With mortgage rates currently at their very best, now is the right time to secure your finances and future through a dream home in Canada!