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Residential Lender PolicyResidential Lender Policy
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The Stewart Title Residential Lender Policy provides protection to lenders in the event that the lender is required to realise on its security and suffers loss as a result of certain defects covered by our policy.

The Residential Lender Policy can be utilised for lending against properties zoned residential and rural.

For a one time premium, the lender is indemnified on a no fault basis, for up to 125% of the principal sum secured by the mortgage for the life of the mortgage.

Lenders are covered for actual loss caused by risks in the mortgage documentation, settlement and registration process such as:

  • identity and title fraud;
  • where the mortgage is not valid and enforceable as an encumbrance against the title;
  • the mortgage does not have the correct priority; and
  • gap cover for the period between advancing funds at settlement and registration of documents.

For full details relating to our standard cover refer to the Product Information Sheet and the Residential Lender Policy.

Stewart Title can also provide cover over known defects through custom underwriting allowing the transaction to proceed with certainty and without delay.

In addition to covering actual loss suffered by a lender, Stewart Title has a duty to defend the validity and enforceability of the mortgage. This duty obliges us to pay all costs, legal fees and expenses incurred by the lender associated with defending the validity of the insured mortgage and any proceedings based on covered title risks. These costs have no monetary limit and do no reduce the amount of indemnity cover available under the policy.

Further, in the event that the mortgage goes into default and Stewart Title has not resolved the claim within 90 days of acceptance of liability, Stewart Title will pay all arrears of principal and interest payable in respect of the insured mortgage and continue to make timely payments until the claim is resolved.