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The Credit Check for Properties
You run a credit check on mortgage applicants — but what about the subject property?
Just as a credit check can tell you a lot about a client’s financial status, a land title report (also known as a Parcel Register*) can tell you a lot about a property’s financial health.
This makes it an exceptionally valuable tool for the mortgage underwriting process.
We will compare the two so you can see exactly how valuable this report truly is.
Personal Credit Checks vs. Property Credit Checks
What a personal credit check reveals: the amount of credit the client is currently using.
What a property credit check reveals: the amount of equity available or currently being used.
While a personal credit check can show you how much available credit a client is currently using, a property credit check can reveal how much of the available equity a property is currently using.
A Parcel Register* reveals current charges on title. Paired with an automated valuation model (AVM), you can access an equity estimate and an estimated property value and compare with the charges currently on title.
What a personal credit check tells you: the types of debts the client currently holds.
What a property credit check tells you: the types of registrations the property currently holds.
A personal credit check can reveal the current debts that a client holds, such as high-interest credit card debt or a line of credit.
A property credit check can reveal the same, but for the charges on title. For instance, you can see if a property has a second mortgage registered against it, plus who is on title. You can also view a history of any registrations, discharges, or transfers of ownership.
What a personal credit check shows: credit rating notices, such as an R7 or R9.
What a property credit check shows: any active judgments or encumbrances.
A personal credit check can flag undischarged insolvencies, such as a bankruptcy or a consumer proposal.
A property credit check can reveal more about a client’s financial status by showing whether there are any active judgments on the property or other encumbrances. You can see if there are undisclosed judgements, tax liens, executions, and more.
What a personal credit check offers: the opportunity to dig deeper into owed amounts or credit history.
What a property credit check offers: the opportunity to dig deeper into instruments.
A personal credit check can flag issues for further investigation. For instance, you might ask a client about a history of missed payments to assess the risk.
A property credit check can also flag issues for further investigation. A Parcel Register* tells you the Property Identification Number (PIN) and instrument numbers for items registered. If you need to know more, you can use this information to request an Instrument Image*
Property Verification At Your Fingertips
Beyond the information listed above, a Parcel Register* also tells you far more about a subject property. This includes, but is not limited to:
- The legal description of the property.
- The legal homeowners, including type and percentage of ownership.
- Registration dates, amounts, and names of registrants.
- And much more.
This empowers you to know more about your deals sooner and ensure that only the very best ones continue to close.
Purview provides access to property title reports for mortgage professionals. Discover the power of more today. Call 1-855-787-8439 or visit www.purview.ca.
* An official product of the Ontario government pursuant to provincial land registration statutes.« Back to Blog