CANADA

Residential Loan Policy

Gold Comprehensive Protection Loan Policy
One-to-Six Residences

 

Our residential loan policy protects the insured lender’s mortgage interest against losses incurred as a result of undetected or unknown defects that affect the priority or enforceability of the insured mortgage against the title to the property.  With some exceptions, these covered risks must exist as of the policy date, but be unknown to the insured.  The policy will be customized to reflect the details of the particular real estate transaction.

 

Our Residential Loan Policy is Available for the Following Property Types

  • Residential dwellings of up to six units
  • Condominiums
  • Cottages
  • Vacant land
  • Cooperatives
  • Leased land

 

Important Features

  • Insures the lender’s interest in the property for as long as the insured mortgage remains on the property
  • Available for a one-time premium payable at the time the mortgage is registered
  • The amount of insurance is the mortgage principle registered on the property and will increase up to a maximum of 125%. The amount of insurance decreases by any amounts (other than legal fees and associated legal expenses) that we pay to cover a claim.

 

Key Covered Risks (Policy Coverage Provisions)1

  • Invalidity or unenforceability of the insured mortgage
  • Someone other than the mortgagee owning an interest in the property
  • Existing liens against the title taking priority over the insured mortgage
  • Violations of municipal zoning by-laws
  • Setback violations
  • Outstanding municipal utility charges, provided such charges form a lien on title
  • Existing work orders
  • Lack of legal access to the property
  • Unmarketability of the land due to adverse matters that would have been revealed by an up-to-date survey/real property report/building location certificate
  • Fraud, forgery and false impersonation to the extent they affect the validity of the insured’s interest in title
  • Forgery after the policy date of a discharge, assignment or postponement of the insured mortgage

 

Standard Exclusions/Exceptions

  • Environmental matters, including but not limited to, mold, asbestos, UFFI, termites, infestations, underground fuel storage tanks, abandoned oil wells, water leakage, and water quality or quantity
  • Native or Aboriginal claims
  • Risks that the insured created, allowed or agreed to
  • Risks that are known to the insured, but not to Stewart Title, on the policy date
  • Matters that first occur after the policy date (with certain exceptions as set out in the policy)
  • Overvaluation of the property by the lender in making its lending decision
  • Physical/structural conditions or defects regardless of whether or not such conditions/defect affect the value or marketability of the property
  • Functionality of septic systems

 

If the property contains 2-6 units (including basement apartments and granny suites) there is no coverage for the additional units unless a multi-unit endorsement is attached (and only to the extent of the number of units referenced therein).

 

Contact us for additional information.

 

 

1Review the actual policy for full coverage details.  The policy may include additional exceptions related to specific issues affecting the property.  It may also include additional endorsements. If the property has more than one unit, the insured is not covered for losses related to the additional unit(s) unless they have a multi-unit endorsement attached the owner policy – that endorsement will indicate the number of units for which coverage is provided.

 

This website is intended to provide information that is of a general nature and is subject to modification. Coverage and requirements can vary depending on the location of the property involved. Please review your actual Stewart Title policy for full coverage details.

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