What is title insurance in Canada?

Title insurance is a one-time policy that protects you (and your lender) against losses caused by defects in the title to your property — such as fraud, forgery, liens, encroachments, zoning violations, and errors in public records. A policy costs $250–$500 and is purchased at closing through your real estate lawyer.

Is title insurance mandatory in Canada?

Title insurance is not legally mandatory for the homeowner, but most lenders require a lender title insurance policy as a condition of the mortgage. If the lender requires it, you pay for it. A separate owner policy is optional but strongly recommended — it protects you, not just the lender.

How much does title insurance cost in Canada?

A residential title insurance policy costs $250–$500 as a one-time premium paid at closing. The exact cost depends on the purchase price and the insurer. Combined lender + owner policies may cost slightly more. There are no ongoing premiums — you pay once and are covered for as long as you own the property.

What is the difference between title insurance and a property survey?

A property survey is a physical measurement of your property boundaries and structures by a licensed surveyor ($1,500–$3,000). Title insurance is an insurance policy that covers financial losses from title defects, including boundary issues, for $250–$500. Title insurance does not tell you where your property lines are, but it compensates you financially if a boundary dispute arises.

Does title insurance protect against title fraud?

Yes. Title fraud (where someone fraudulently transfers ownership of your property) is one of the key risks that title insurance covers. If someone forges documents to sell or mortgage your home, title insurance covers the legal costs and financial losses to restore your ownership.

Do I need title insurance when refinancing?

Your lender will require a new lender title insurance policy every time you refinance, since a new mortgage is being registered on title. The cost is $250–$400 and is typically paid as part of your refinancing legal fees. Your existing owner policy (if you have one) remains valid — you do not need a new owner policy when refinancing.

What is the difference between an owner policy and a lender policy?

A lender policy protects the lender against title defects that affect their mortgage security — it does not protect you. An owner policy protects you, the homeowner, against the same title defects. Most lenders require a lender policy. An owner policy costs an additional $50–$150 on top of the lender policy and is strongly recommended — without it, you would need to pay your own legal costs to resolve a title problem.

Title Insurance in Canada: What It Covers, Costs & Do You Need It?

Title insurance protects you against problems with your property’s legal ownership that existed before you bought it — or in some cases, problems that arise after. It’s a one-time cost at closing that can save you from devastating financial losses. Here’s how it works, what it costs, and whether you should get it.

What title insurance covers

Risk	What Could Happen	Title Insurance Coverage
Title fraud/forgery	Someone forges documents to sell or mortgage your home	Covered — legal costs and losses to restore ownership
Existing liens or mortgages	Previous owner had unpaid debts secured against the property	Covered — insurer pays to resolve the lien
Encroachment issues	Your structure (or neighbour’s) crosses the property line	Covered — financial loss if you must remove the structure
Zoning violations	Previous owner built without proper permits or against zoning	Covered — costs to bring into compliance
Survey defects	Property boundaries are different than represented	Covered — financial loss from boundary disputes
Errors in public records	Mistakes in land registry documents	Covered
Missing heirs	An heir of a previous owner claims ownership	Covered
Easements not disclosed	Utility right-of-way or neighbour access not shown on title	Covered
Property tax arrears	Previous owner had unpaid property taxes	Covered
Building permit issues	Work done without permits affecting property value	Covered
Unpaid condo fees	Previous condo owner had arrears that become a lien	Covered

What title insurance does NOT cover

Risk	Why Not Covered
Known defects you were told about before purchase	You accepted them at purchase
Environmental contamination	Separate coverage needed
Issues arising from your own actions	You caused the problem
Normal property maintenance or deterioration	Not a title defect
First Nations land claims (in some policies)	Check your specific policy
Future zoning changes by the municipality	Municipal powers, not a title defect
Problems you created after purchase (unauthorized renovations)	Your responsibility

Title insurance cost

Property Value	Approximate Premium
Under $500,000	$250–$350
$500,000–$1,000,000	$300–$450
Over $1,000,000	$400–$600

One-time payment at closing — no annual premiums
Coverage lasts as long as you own the property
Most lenders require at minimum a lender policy; an owner policy is additional
Combined lender + owner policies are typically $50–$100 more than a lender policy alone

Major title insurance providers in Canada

Provider	Notes
FCT (First Canadian Title)	Largest provider in Canada
Stewart Title	International company with strong Canadian presence
Chicago Title	Available through some law firms
TitlePLUS	Offered through the Law Society of Ontario (lawyers’ insurer)

Your real estate lawyer typically arranges title insurance and recommends a provider.

Owner policy vs lender policy

Feature	Lender Policy	Owner Policy
Who it protects	The lender only	You, the homeowner
Required?	Yes — almost all lenders require it	No — optional but strongly recommended
Coverage amount	Mortgage balance (declines as you pay down)	Purchase price (stays constant)
Duration	Until mortgage is paid off or discharged	As long as you own the property
Cost	Included in base premium ($250–$500)	Additional $50–$150
Pays for your legal defence?	No — only protects lender’s interest	Yes — covers your legal costs
Fraud coverage for you?	No — lender is made whole; you may still lose equity	Yes — you are compensated

Why you should always get an owner policy: If someone registers a fraudulent mortgage against your property, the lender policy protects the bank — not you. Without an owner policy, you must pay your own lawyer to fight the fraud and restore your title. Legal fees alone can exceed $20,000 in complex title fraud cases.

When you need new title insurance

Event	Lender Policy Needed?	Owner Policy Needed?
Purchasing a home	Yes (new policy)	Recommended (new policy)
Refinancing with same lender	Yes (new policy)	No — existing policy remains valid
Refinancing with new lender	Yes (new policy)	No — existing policy remains valid
Renewing with same lender	No — existing policy carries forward	No
Switching lenders at renewal (no increase in amount)	Yes (new policy; usually lender-paid)	No
Adding a HELOC	Some lenders require it	No

At refinance, your legal fees typically include the cost of a new lender title insurance policy ($250–$400). This is built into the $800–$1,500 legal fee for refinancing.

Provincial differences

Title insurance rules and alternatives vary by province:

Province	Key Differences
Ontario	Title insurance is standard; most widely used province. TitlePLUS (Law Society insurer) available as alternative. Property surveys are rare unless buyer specifically requests one.
Alberta	Uses the Real Property Report (RPR) + compliance letter as standard practice instead of title insurance. RPR is a surveyor document showing structures and boundaries ($500–$1,000). Title insurance is available as a faster, cheaper alternative.
BC	Title insurance is common but not universal. Buyers can choose a survey instead. BC has a well-maintained Land Title and Survey Authority (LTSA) with electronic title management.
Quebec	Title insurance is less common. Notaries conduct a title examination (search of historical records) as part of the closing process. Some lenders still require title insurance.
Saskatchewan, Manitoba	Torrens land title system with strong government guarantee. Title insurance is still commonly purchased but the land title system provides some built-in protection.
Atlantic provinces	Title insurance is standard practice, similar to Ontario.

Alberta RPR vs Title Insurance

Factor	Real Property Report (RPR)	Title Insurance
Cost	$500–$1,000 (seller typically pays)	$250–$500 (buyer pays)
What it shows	Physical boundaries, structures, setbacks, encroachments	Does not show physical boundaries
What it protects	Nothing — it’s informational only	Financial losses from title defects
Fraud protection	No	Yes
Timeline	4–6 weeks for a new RPR	Available within days
Municipal compliance	Requires a compliance letter from the municipality	No municipal involvement
Common Alberta practice	Seller provides RPR + compliance letter	Used when RPR is unavailable or non-compliant

Title insurance providers compared

Provider	Market Share	Strengths	Available Through
FCT (First Canadian Title)	Largest in Canada	Fastest processing; widest lawyer network; strong claims department	Most law firms
Stewart Title	Second-largest	Strong commercial coverage; international backing	Many law firms
Chicago Title	Smaller presence	Available for residential and commercial	Select law firms
TitlePLUS	Ontario-focused	Backed by LAWPRO (lawyers’ insurer); covers some issues others don’t (e.g., fraud by your own lawyer)	Ontario lawyers

All residential policies cover the same core risks. The main differences are in claims handling speed and niche coverage areas. Your lawyer will typically recommend a provider they work with regularly — this is fine in most cases.

Title insurance vs property survey

Many buyers wonder whether they need title insurance, a survey, or both.

Factor	Title Insurance	Property Survey
Cost	$250–$500 (one-time)	$1,500–$3,000+ (one-time)
What it does	Insures against financial loss from title defects	Physically maps property boundaries and structures
Boundary protection	Compensates you financially if a boundary issue exists	Shows you exactly where the boundaries are
Legal protection	Covers legal fees to defend your title	Does not cover legal costs
Fraud protection	Yes	No
Lien protection	Yes	No
Required by lender	Usually yes (lender policy)	Sometimes (as alternative to title insurance)
When it helps	After a problem is discovered	Before you build, fence, or resolve disputes

Most buyers get title insurance. It’s cheaper and covers more risks. A survey is valuable if you plan to build an addition, install a fence, or if the property has unusual boundaries.

Some situations warrant both:

Rural property with unclear boundaries
Property with recent additions or structures near the property line
Waterfront property where boundaries may shift

When title insurance is essential

Situation	Why
No recent survey exists	Title insurance covers boundary risks that a survey would reveal
Older home	Greater chance of historical title issues, unpermitted work, or undisclosed easements
Condo purchase	Covers unpaid common element fees, status certificate issues
Previous owner did renovations	May not have obtained proper permits
Estate sale	Title may have issues from the estate settlement process
Foreclosure or power of sale	Higher risk of liens, tax arrears, or disputes

How to make a title insurance claim

Discover the title defect — You’re served a notice, discover a lien, or learn of a boundary dispute
Contact your title insurer — Use the contact information on your policy (your lawyer will have a copy)
Provide documentation — The notice you received, your policy, and your purchase agreement
Insurer investigates — They review the claim and determine coverage
Resolution — The insurer either resolves the defect (pays off a lien, defends your title in court) or compensates you for the financial loss

Claims are relatively rare, but when they occur, the amounts can be large — $10,000 to $500,000+ for serious title fraud or boundary disputes.

Real claim examples

These are the types of claims title insurance resolves:

Scenario	What Happened	How Title Insurance Helped
Undisclosed lien	Buyer purchased a condo; previous owner owed $12,000 in condo fees that became a lien on title	Insurer paid $12,000 to clear the lien
Encroachment	Buyer’s garage was 8 inches over the property line, discovered when neighbour demanded removal	Insurer covered $35,000 cost to relocate the garage
Forgery/title fraud	Fraudster transferred title of a vacant property and took out a $300,000 mortgage	Insurer covered all legal fees and losses to restore original owner’s title
Survey defect	Backyard fence was 3 feet inside the neighbour’s property; neighbour demanded it be moved	Insurer paid $8,500 for fence relocation and survey
Unpermitted renovation	Previous owner finished the basement without permits; municipality required it be brought to code	Insurer covered $22,000 in remediation costs
Property tax arrears	Estate sale; $6,800 in unpaid property taxes discovered after closing	Insurer paid the tax arrears

How to buy title insurance

Step	What Happens
1	Your real estate lawyer includes title insurance in your closing process
2	Lawyer recommends a provider (FCT, Stewart Title, etc.)
3	You choose lender-only policy (required) or lender + owner policy (recommended)
4	Lawyer orders the policy and provides your details to the insurer
5	Premium is included in your closing costs statement
6	Policy is issued at closing — you receive a copy

You don’t need to shop for title insurance yourself. Your lawyer handles it. However, you should specifically ask for an owner policy — some lawyers only arrange the lender policy by default unless you request owner coverage.