What is Title Insurance?

Title insurance originated in the United States some 150 years ago, and until recently was not something available in Canada. The most recognizable Title Insurance companies in Canada include Chicago Title Canada and First Canadian Title

In a nut shell, Title Insurance is insurance that, protects the insured against loss resulting from title and survey defects that would otherwise have been revealed by an up-to-date survey, property report or building location certificate. Title Insurance also protects the insured against losses associated with fraud and forgery as it relates to the title.

The difference between Title Insurance and conventionally thought of insurance is that Title Insurance protects the insured against matters that happened in the past as opposed to things that might happen in the future.

There are two types of Title Insurance available and include policies for property owners and lenders. Title Insurance for owners protects the owner against loss to the owner of the property while policies for lenders ensure that the mortgage is valid and enforceable against the property. When purchased, the policy stays in effect for as long as the owner retains an interest in the property and is generally transferable in case of the owner’s death. Title Insurance is available for both residential and commercial properties.

Taken from Chicago Title Canada, risks insured against include the following:

• The un-marketability of the Land.
• Lack of a right of access.
• Someone else has an interest in the title.
• A document is not properly signed, sealed or delivered.
• Forgery, Fraud, duress, incompetence or impersonation.
• Future frauds and forgeries affecting title.
• Defective registration of a document.
• Restrictive covenants limiting the use of the Land.
• Liens arising from mortgages, taxes, utilities, judgments or condominium charges.
• Builder’s Liens.
• Rights of possession arising from leases, options, family law or homestead rights.
• Easements over the Land.
• Enforced removal of existing structures because they encroach onto adjoining land or easements, or because they violate municipal by-laws.
• The house cannot be used as a single family residence because it violates a restriction or zoning by-law.

A big benefit of Title Insurance is the fact that in most cases, it eliminates the requirement for a survey certificate and is generally more cost effective than having a survey completed. The policy is purchased prior to closing on the property or mortgage transaction and is typically ordered by the Lawyer or Notary prior to the purchase or registration of the mortgage.


While most properties qualify for Title Insurance, your Lawyer will advise you if the property is eligible. 

Always be informed…

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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What is the difference between a Co-signer and a Guarantor?

People often use the terms guarantor and co-signer interchangeably, but they have very different responsibilities and rights. A co-signer is basically a co-owner and he or she is registered on the title and is equally accountable for mortgage payments.

A guarantor, on the other hand, personally guarantees mortgage payments will be made if the original applicant defaults, but has no claim to the property because he or she is not on title. It's a huge responsibility for Guarantors who have the obligations of the mortgage but don't have any claim to the property.

Lenders require co-signers and guarantors usually due to poor credit, insufficient employment history, inadequate down payment or questionable income.

Sometimes, if one spouse is an entrepreneur and does not want to risk losing the house should the business go bankrupt in the future, they can simply become a guarantor on the mortgage and keep themselves off title.

After a period of time, a guarantor or co-signor can be removed off title should the owners of the property be able to qualify on their own. But a lawyer will need to be used to remove the guarantor or co-signor off title.

Before you co-sign or guarantee a mortgage read the document carefully and know your rights.

Always be informed…

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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What is a Beacon Score?

It is a score that the credit bureau assigns to each client when they have some sort of credit such as credit cards, car loans, RRSP loans, unsecured and secured line of credits.

Most banks look for a minimum score of 620. Below 620, usually the “A” banks will not approve and most people will need to look at the B banks or go private.

What affects the beacon is also if the clients make any late payments, have too much debt and only pay the minimum on the credit card, the score will go down drastically.

To increase you credit score; try to use only 1-2 credit cards or not at all. Always pay your bills in full or at least pay the minimum on time. Late payments will remain on your credit history for seven years. Any collections will also show up on the credit bureau.

It is important to understand your beacon score cause that will decide if you can buy or refinance your house or not.

Be an informed client.

For more information contact your Toronto Mortgage Broker 

at 416-920-9931

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