Title Insurance

What is "Title?"

"Title" is a word lawyers use to describe the right of ownership to land. When you purchase a home, title is transferred to you, the new home owner.

What is Title Insurance

Title insurance is an insurance policy that protects you, the home owner, against challenges to the ownership of your home or from problems related to the title to your home. The policy provides coverage against losses due to title defects, even if the defects existed before you purchased your home. A title defect is a problem with the title which prevents free and clear ownership. There are many types of defects such as rights of way, encroachments (from neighbouring properties), unpaid liens, etc.

Title insurance policies protect you for as long as you own the property. It protects against a number of risks that a solicitor's opinion on title may not cover. These risks include:

• Fraud and forgery, including someone taking your title through fraud or forgery
• Encroachments that would be disclosed by a new survey (for example, a neighbour's deck being partly on your land)
• Easements (the right acquired for access to or over another person's property for a specific purpose, such as for a driveway or public utilities. This is referred to as "servitude" in the Province of Quebec) over the property that would be disclosed by a new survey
• Zoning non-compliance (i.e. where the property use does not meet the local municipal by-laws)
• Someone other than the home owner having interest (i.e. a previous owner of the property not being discharged from title)

Title insurance is generally purchased when you buy your home or when you refinance it, although it can be purchased any time after you buy your home. You will only make one premium payment when you first buy the insurance. A title insurer can tell you how to purchase the policy.

How Do I Know if I Need Title Insurance?

If you are purchasing or refinancing your home, you should discuss title insurance with your lawyer/notary to see if a title insurance policy is right for you. Your lawyer/notary can arrange the purchase of a home owner's policy.

For more information visit the RBC Mortgage Centre.

A look at how insulation and air sealing your home could save you money

Thanks to Lorraine Gauthier - President, The Now House Project

You know, we can't do everything at once, because you can't afford usually to do all of the changes you might like to make to your home. So it's really important to take a first step, and the very first step people should make is looking at insulation and air sealing their home,

Often we think that maybe windows are a good place to start to reduce our energy use, and windows are a good place, if in fact you've done some other things.

You're really looking at what we call the envelope of the home. So if you imagine all the things that are basically making up the outside of the home: the roof, the exterior walls, your foundation walls, even your foundation floor, these are all very important. And then after that, you worry about the windows.

You want to, you know, get out the weather stripping or get someone in to help you with changing or improving the level of insulation you may have in your attic or your exterior walls.

Look at your basement possibly. You can insulate a basement from the inside, or you can insulate the basement from the outside, just really depending on what you're trying to do.

The best thing about insulating your home is basically the result that you get. So your home will be more comfortable. It will be warmer in winter and cooler in summer. You will spend less money, obviously, because you'll reduce the amount of gas or electricity you need, and it's much better for the environment.

For more information visit the RBC Advice Centre.

Top 5 money tips for travellers

If you’re travelling outside of Canada, you need to have reliable access to your money. Here are 5 easy ways to save time, save money, and help make for a smooth and enjoyable trip.

1. Bring some local currency - When you arrive at your destination, there’s already enough to do. So it’s a great idea to exchange your money at the bank before you leave (give yourself a few extra days should they need to order it in). Having some cash on hand to pay for things like taxis or tips means you can start your vacation right away instead of spending the first hours of your trip searching for a foreign exchange office.
2. Have a cash alternative - While travelling, you’ll want to be able to access larger amounts of money for major purchases or hotel costs. Credit cards are accepted just about anywhere and are much more secure than cash, so they are the perfect travel companion. To avoid potential processing delays while you’re away, be sure to let your bank know that you’ll be travelling. American Express‡ Travellers Cheques are another safe alternative to cash as they’re easy to replace if lost or stolen.
3. Pick a 4-digit PIN - Most foreign ATMs and merchant terminals only accept 4-digit PINs. In order to access your money without difficulty while away, set or re-set your credit and debit card PIN to a 4-digit code.
4. Stay connected online - Just about anywhere you travel, you can easily get to a computer or access your mobile phone. And if you bank online, you can manage your money from wherever you might be. So whether you need to pay your bills during an extended trip, or transfer funds to free up some cash, staying connected while abroad is not only a good idea, it’s secure and convenient too.
5. Spend your coins - Foreign coins are not accepted for exchange once you’re back home (but they are perfect for snacks and souvenirs at the airport). Instead of breaking a bill for any last-minute purchases, try to use up your coins. You’ll save your paper currency… and lighten your load as you travel home!
   
   
   Read more at the RBC Advice Centre.

Setting up an Emergency Fund

Setting up an Emergency Fund can help you be financially prepared for the unexpected

We've all been there: The car breaks down, just when you need it the most, or the fridge has decided to just stop working. You can't put off these expenses, but chances are, you weren't expecting them.

Instead of being in a jam, or having to go into debt to cover your costs, it's a good idea to set up an Emergency Fund - some savings to cover life's unexpected events.

So how much should you save for a rainy day? Well, most financial experts recommend that you have about three months' salary in your emergency fund. If you don't currently have one, or find it difficult to save money, the key is to start small.

Now, putting money aside for one month's worth of expenses, let alone three, could take some time. But if you set your goal to put even a little money aside each month, you'll have a much better chance of reaching it.

RBC can help you get started, by setting up automatic transfers between your RBC bank accounts, through our "Save-matic Program".

When emergencies happen, and they will happen, it's important to have an emergency fund in place so you have access to the funds you need, quickly.

To figure out how much you should be setting aside, check out the Emergency Fund tool and help yourself be prepared.

Visit the RBC Advice Centre for more great information!

Mortgage or life insurance? What's right for you?

Getting the right combination of insurance coverage is important to protect your family - and you want to do that without being over-insured. Something you should think about is whether your family would have the financial support they need to stay in their current home if something were to happen to you.

So, when it comes to protecting your family home there are a couple of options, mortgage insurance or life insurance.

Mortgage insurance pays down the balance of your mortgage if something should happen to you. As a mortgage is typically the biggest financial debt for a family, this can ease a significant financial burden for your surviving spouse.

Life insurance is different. It provides a lump-sum payment to your beneficiaries if something should happen to you. You determine the amount of life insurance you will need when you purchase your life insurance policy.

How that lump-sum payment is used is entirely up to you. Some people choose to use it against their mortgage and any other debts. Some choose to use it to replace the income that is no longer there, while continuing to pay off the mortgage on their own.

Mortgage insurance, life insurance or a combination of both can certainly provide financial support to help keep your family home.

Finding the right combination of insurance coverage to match your financial goals, without being over-insured may seem challenging, that's why we suggest consulting a licensed insurance advisor. They can help you understand the right type of insurance and the amount of coverage you need, plus answer any questions you may have.

Read more at the RBC Advice Centre.