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Title Insurance BC

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Title Insurance What Is It & Why So Many Private Lenders Require It.

British Columbia works on the modified Torrens land title system that “guarantees” your title. It is questionably one of the best systems for land registration. This system is very accurate in determining who the owner is and what registered charges are against the property. The province assurance fund also pays financial compensation in appropriate cases where the possibility of lose of title through fraud occurs.

This system has been in place for many years and is considered great for normal transactions.

What Is Title Insurance & Why You Might Consider Getting It.

Title Insurance insures buyers or lenders against potential loss of title (for example, ownership of the property you’re buying) &/or problems with the title. Almost all private mortgage lenders require title insurance on all mortgages they do.

mortgage broker BCExample of a Problem with Title: Client purchases a home with a shared driveway. The home in question has no other access to the road system without using this driveway. Later the home owner finds out that the driveway has no right of way or easement for the title of his/her home and the other home owner will not grant this to them. This is a case where title insurance can cover the lender & possible the home purchaser.

mortgage broker BCAs well title insurance might cover you for construction done by the previous home owner without permits or building by-law infractions, land use as well as set back problems.

Very few mortgage fraud cases happen in BC in the past two decades but they do get quite a bit of media attention when they do.  If an innocent home owner is defrauded through transfer of their title and the fraudster who then takes out a mortgage and takes off with the money, then the lender now bears the risk of loss. This makes the small cost of Title Insurance worth it for you in BC.

Mortgage BrokerIf you are considering the purchase or refinance of  a home consider  title insurance or talk to a Real Estate lawyer to better understand the benefit or other useful product for your particular transaction.

Non Resident Equity Mortgage BC Real Estate Investors

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Equity Mortgages BC & Foreign Investors from China Greece & Russia

The foreign real estate investing is not a new concept in the Canadian real estate market. For many years now China has been one of the leaders in the Vancouver Real Estate market but there are two emerging competitors due to the financial uncertainty in Russia & Greece. Article MortgageBrokerNews.ca

Mortgage BrokerWith the banks stricter mortgage rules where will this leave foreign &/or non resident real estate investors if they can’t provide adequate assets or down payment to satisfy banking guidelines?

Non Resident Equity Mortgage Solutions

mortgage broker BCSome Banks require 35% and in some cases 50% as a down payment under their policies. Non Resident can get approved by using a Non Resident Equity Mortgage solutions:

  • B-Lenders can be an option; they can allow greater loan to value ratios. In most cases up to 75% LTV. Rates are slightly higher than bank rates and usually these types of mortgages come with a 1% to 2% fee associated with the setup.
  • Home Equity Mortgage Lenders lend base most of their lending criteria on equity. In most cases proof of income & credit is not an issue and generally lend up to 75% LTV. These mortgages come with higher costs and rate but can close in most cases faster than banks & b-lender.
  • 2nd Mortgage Options would be another option. Firstly we would obtain a conventional lender (bank, trust company or credit union) to take on the 1st mortgage to the maximum the client would qualify. We then match the foreign real estate investor with a 2nd mortgage generally up to 75% LTV for the balance. Broker & Lender fees may apply in addition to higher rates due to the priority of the mortgage. There are 2nd mortgage programs able to lend up to 85% LTV but the costs associated with these types of loans are Very costly.

For a no obligation review of your mortgage needs feel free to give me a call to discuss equity mortgage options that might be right for you.

The Mortgage Group