TitlePLUS coverage and premium adjustment for residential private lenders

Related Articles

Effective immediately, we are pleased to extend this coverage to your private lender clients in a residential transaction for a $75 premium. This coverage is already available for institutional lenders in residential and commercial transactions.
September 30 marks the second National Day for Truth and Reconciliation. The day was created to...
September 30 is a federal statutory holiday. Banks, the post office and other federally regulated entities will be closed. The holiday will affect real estate closings, court and tribunal hearings and other legal matters. TitlePLUS title insurance will remain open.

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.

Related Articles

Effective immediately, we are pleased to extend this coverage to your private lender clients in a residential transaction for a $75 premium. This coverage is already available for institutional lenders in residential and commercial transactions.
September 30 marks the second National Day for Truth and Reconciliation. The day was created to...
September 30 is a federal statutory holiday. Banks, the post office and other federally regulated entities will be closed. The holiday will affect real estate closings, court and tribunal hearings and other legal matters. TitlePLUS title insurance will remain open.