What is covered?

First Title’s policies for lenders ensure you have a valid and enforceable interest in a mortgage, and in the real estate secured by that mortgage. Your First Title policy commences from the moment the loan is settled and continues until the loan is fully repaid and/or discharged.

Coverage against loss

Lenders are indemnified against loss or damage suffered as a result of any of the covered risks. Depending on the policy type, the lender may be covered up to an amount of 125% of the original loan contract amount, as well as legal costs and expenses incurred by defending the mortgage.

Duty to defend

First Title accepts an obligation to defend the enforceability of the mortgage and the title to the security property. We accept the obligation to pay all legal costs and expenses incurred in defending the mortgage. These costs are in addition to the indemnity amount under the policy.

Timely payments

Under certain circumstances, First Title may agree to make timely payments – representing principal and interest instalments on the mortgage – for covered risks, should certain conditions apply.