The purchase of a home requires more than just a downpayment and a mortgage; there are also the “add on” products that either protect you investment or the lenders interests.
There’s mortgage loan insurance, homeowners insurance and title insurance – the purpose of the last one being the least clear to most of us. To make matters murkier, there are actually two types of title insurance required when purchasing property; one covers the lender and the other protects the home owner.
Take a look at this article from the Montreal Gazette for a nice overview of the role of home owner title insurance. For a refresher on both types, including lender required title insurance, check out this piece from one of our past features on the various types of insurance required when purchasing a home.