Title insurance is a small line item on your closing statement. Typically a few hundred dollars. That protects you from problems most buyers don't know are possible. Here is what it actually does.
What Title Insurance Covers
A title insurance policy issued at closing covers the buyer against issues including:
- Title defects. Competing ownership claims, undisclosed liens, errors in prior registrations
- Title fraud. Someone forging documents to transfer your home out of your name
- Survey issues. Encroachments, boundary disputes, and zoning issues that were not obvious
- Building Code or zoning non-compliance. Work done by a prior owner without permits
- Forced removal. An order to remove an encroaching structure (a deck over a setback line, for example)
Some of these are catastrophic if they happen. Title fraud in particular has cost Ontario homeowners millions over the years. Title insurance is the practical defence.
What It Doesn't Cover
Title insurance is not home insurance. It does not cover:
- Damage from fire, water, weather, or theft
- Defects you knew about before closing
- Environmental contamination (a separate policy)
- Issues that arise after closing because of work you do
Why Lenders Require It
Almost every Ontario lender requires title insurance to fund a mortgage. Lenders want to know that if a title issue emerges. Say, a prior owner's lien surfaces years later. The insurance company stands behind the title, not their loan-to-value calculation.
How Much It Costs
For a typical Ontario residential purchase, a buyer policy runs $300 to $500 one-time, paid at closing. A combined buyer-and-lender policy is slightly more. The cost scales modestly with purchase price.
Compared with the value of your home and the risks the policy covers, it is one of the most cost-effective insurance products you'll ever buy.
Owner Policy vs. Lender Policy
If your lender requires it, you'll have a lender policy. That protects the lender, not you. We strongly recommend pairing it with an owner policy in your name. It is a one-time premium and it stays in place for as long as you own the home.
Title insurance is included as standard on every simplyclose closing. If you have questions about what your policy covers, get a free quote. We explain the coverage in plain English before you sign.
Common questions
How much does title insurance cost in Ontario?
For a typical Ontario residential purchase, a buyer policy costs $300 to $500. It is a one-time premium paid at closing, with no annual renewals. A combined buyer-and-lender policy costs slightly more, and the price scales modestly with your purchase price. Coverage lasts as long as you own the home.
Is title insurance mandatory in Ontario?
In practice, yes for most buyers. Almost every Ontario lender requires title insurance before it will fund a mortgage, so if you are buying with financing, expect it on your closing statement. Keep in mind that policy protects the lender, not you. An owner policy is a separate, recommended add-on.
Does title insurance protect against title fraud?
Yes. Title fraud, where someone forges documents to transfer your home out of your name, is one of the core risks a title insurance policy covers. It has cost Ontario homeowners millions over the years. An owner policy stays in place for as long as you own the home, so the protection does not expire.
Is title insurance the same as home insurance?
No. Home insurance covers damage from fire, water, weather, and theft. Title insurance covers ownership problems: competing claims, undisclosed liens, title fraud, survey and boundary issues, and unpermitted work by a prior owner. It does not cover defects you knew about before closing or environmental contamination, which needs a separate policy.
Do I need my own title insurance policy if my lender already has one?
Yes, it is strongly recommended. The lender policy protects the lender's mortgage, not you. An owner policy in your name covers your own losses from title defects, fraud, survey issues, and similar problems. It is a one-time premium, and the coverage stays in place for as long as you own the home.
About the author: Christian Janisse is a licensed Ontario real estate lawyer and the founder of Simplyclose Law Professional Corporation. He acts for buyers, sellers, and lenders on purchases, sales, refinances, and title transfers across Ontario — in person in Windsor and remotely province-wide.