As your partner in real estate, we are committed to offering competitively priced title insurance and comprehensive coverage while managing risk.
We are seeing a significant increase in the number and value of frauds involving residential private mortgages. As such, an analysis of the risks has necessitated the following changes:
- The private lender fee for applications created on or after February 15, 2022, will increase to $250. For private lenders that have been pre-approved, the fee will remain at $150.
- Private mortgage transactions over $500,000* closing on or after February 15, 2022, will only be insured where: (a) the lender has been pre-approved, or (b) a parent is lending to their child.
Policies issued before February 15, 2022, will not be affected by these changes.
As a reminder, private lenders are those that are not “lending clients” under Rule 3.4-13 of the Law Society of Ontario Rules of Professional Conduct.
Private lenders will be considered for pre-approval if they are:
- Mortgage investment corporations under S. 130.1 of the Income Tax Act that are not listed on a Designated Stock exchange for purposes of the Income Tax Act, or
- A corporation regulated by a Canadian federal, provincial or municipal regulator.
For private lender pre-approval, please contact us.
If you have questions about this change, your consultant will be happy to help:
Roop Grewal (GTA West, Simcoe and Vaughan)
416-578-8727 [email protected]
Dexter Jao (GTA East, York, Durham and Northern Ontario)
647-904-6884 [email protected]
Shawna Ramsay (Eastern Ontario)
613-410-9509 [email protected]
Jamie Smith (Western Ontario, Hamilton and Niagara)
416-802-0649 [email protected]
Most TitlePLUS policies will continue to include coverage for the lawyer’s legal services automatically, at no extra charge.
Thank you for your ongoing support and partnership.
*For clarity: When an application is made to insure a private mortgage and other private mortgages will remain on title or be registered, the registered amounts will be added together to determine whether they exceed $500,000.
