Title Insurance in Ontario
Legal protection for your right to own your property — from fraud, hidden liens, and legal disputes that could threaten your ownership even after closing.
What is Title Insurance?
Title insurance is a policy issued once at the time of a real estate purchase or refinancing. It protects the buyer and lender from financial losses arising from defects in the title — whether they existed before the purchase or are discovered afterward.
Unlike most types of insurance, title insurance is paid once — and remains in effect as long as you own the property or the mortgage remains outstanding.
Concepts Many Buyers Confuse
Title insurance is not the same as your lawyer's role — and it is not the same as mortgage loan insurance
What does your lawyer do — and what don't they do?
Your lawyer searches the title and reviews the land registry to confirm there are no known liens or issues — but this search only covers what is registered and visible at the time of the transaction.
Key takeaway: Your lawyer sees the visible past — title insurance covers the unknown. The two are complementary, not interchangeable.
What is mortgage loan insurance and how is it different?
Mortgage loan insurance — commonly known as CMHC insurance — is mandatory insurance that protects the bank when your down payment is less than 20% of the property value. You pay the premium — but it does not protect you.
Important: Even though you pay the CMHC premium, this insurance protects the bank — not you. If you default, the bank deals with CMHC, but you remain responsible for any shortfall.
What Does Title Insurance Cover?
Six key areas that protect your real estate investment
Title Fraud
Protection against fraud schemes that forge signatures or create fake title documents to transfer ownership of your property without your knowledge.
Hidden Liens & Debts
Coverage for mortgages, property taxes, or debts registered against the property that were not disclosed before closing.
Legal Ownership Disputes
Protection from claims by heirs or third parties asserting a right to the property based on prior contracts or wills.
Land Registry Errors
Coverage for errors and omissions in officially registered title documents, including survey mistakes and boundary discrepancies.
Encroachments & Hidden Restrictions
Protection from encroachments on property boundaries or undisclosed restrictions that limit your use of the property.
Registered Easements & Rights
Coverage for rights-of-way or easements registered against the property that were not disclosed during the sale.
Owner's Policy vs. Lender's Policy
Two types of title insurance — each with a different purpose
| Criteria | ✓ Owner's Policy | Lender's Policy |
|---|---|---|
| Who is protected? | The buyer / property owner | The lender (bank or mortgage company) |
| Is it mandatory? | Optional — but strongly recommended | Mandatory in most mortgage transactions |
| Duration of coverage | As long as you own the property or your heirs do | Until the mortgage is fully paid off |
| Premium | One-time payment at closing | One-time payment at closing |
| Covers pre-purchase claims? | Yes — covers issues that existed before your purchase date | Yes — but only to protect the lender's interest |
| Legal costs | Covered by the insurer on your behalf | Covered by the insurer to protect the lender's interest |
Important note: The Lender's Policy protects the bank only — not you. If a title defect arises, the bank will deal with the insurer directly, but you will bear the personal loss unless you have an Owner's Policy.
Who Issues Title Insurance — and Who Arranges It?
Title insurance is not purchased directly — it is arranged through your real estate lawyer at closing
How do you get title insurance?
You engage a real estate lawyer to complete your purchase or refinancing transaction
Your lawyer recommends a title insurance policy — or you can request one directly
You choose the appropriate coverage (Owner's Policy + Lender's Policy)
A one-time premium is paid at closing — included in your closing costs
Leading title insurance companies in Canada
Your lawyer arranges the policy with one of these companies on your behalf
FCT (First Canadian Title)
One of Canada's largest title insurance providers
Stewart Title
Comprehensive coverage for residential and commercial properties
Chicago Title
Integrated services for real estate transaction closings
How much does title insurance cost?
Owner's Policy
$150 – $400
One-time payment at closing — for residential properties in Ontario
Lender's Policy
$150 – $300
One-time payment — mandatory in most mortgage transactions
Cost varies by property value and insurer. It is typically added to your closing costs collected by the lawyer. There are no monthly or annual premiums — one payment only.
Frequently Asked Questions
Answers to the most common questions about title insurance
Is title insurance mandatory in Ontario?
It is not legally mandatory for buyers, but it is practically required in most mortgage transactions to protect the lender. An Owner's Policy is strongly recommended to protect your personal investment.
How much does title insurance cost?
A one-time premium is paid at closing. Costs typically range from $150 to $400 for residential properties in Ontario, varying by property value and insurer.
Does title insurance cover problems that arise after purchase?
No — title insurance covers problems and claims that originated before your purchase date, even if discovered later. Issues arising after purchase fall under homeowner's insurance or liability coverage.
What is the difference between title insurance and home insurance?
Home insurance protects the building and contents from fire, theft, and natural disasters. Title insurance protects your legal right to own the property itself from disputes and legal claims.
Can I get title insurance after closing?
Yes — it can be obtained after closing, but the cost may be higher and some known issues may be excluded. It is always best to obtain it before or at closing, or when refinancing.
Does title insurance cover real estate fraud?
Yes — and this is one of its most important benefits. It protects against title fraud, including forged signatures and transfers of ownership without the true owner's knowledge — a type of crime that is increasing in Canada.
Questions About Title Insurance?
Our Arabic-speaking advisors can help you understand your options and what questions to ask your real estate lawyer about Title Insurance in Ontario.