Title Insurance in Canada Explained: Do You Need It? (2026)
Title insurance is a one-time $300–$600 premium covering defects, fraud, survey problems and unpaid liens. Lender’s policy required; owner’s policy optional.
Title insurance is a one-time premium, typically $300 to $600 on a home under $1 million, that pays if a defect in your ownership surfaces later: a forged deed in the chain, an unregistered lien, a garage built over the lot line, a municipal work order nobody disclosed, or someone fraudulently mortgaging your home. Almost every lender requires a lender's policy to protect the mortgage. An owner's policy, protecting your equity for as long as you own the home, is optional and usually costs $100 to $250 more when bought together. Most lawyers recommend it; the price is small against the risk it covers.
The CostToClose guided buying flow includes a default estimate you can edit.
The two policies
| Metric | Lender's policy | Owner's policy |
|---|---|---|
| Protects | The mortgage lender, up to the loan balance | You, up to the purchase price (some policies inflate with value) |
| Required | By almost all lenders | Optional |
| Term | Until the mortgage is discharged | As long as you or your heirs own the property |
| Typical cost ($500,000 to $1 million home) | $200 to $400 | $100 to $250 additional when bundled |
Sources: FCT, Stewart Title, Chicago Title published rate cards; FSRA guidance. Checked 14 September 2026.
What it covers
- Title defects and errors in prior deeds, wills or registrations.
- Fraud and forgery, including someone impersonating you to sell or mortgage the home after closing. The most common large claim in recent years.
- Unpaid liens for property tax, utilities, condo fees or construction that survive closing.
- Survey and zoning problems: encroachments, setback violations, unpermitted additions, where a survey was not obtained.
- Lack of legal access, unmarketable title, and the legal costs of defending your title.
Because it covers survey issues, most Ontario and Atlantic buyers rely on title insurance instead of commissioning a new survey ($1,500 to $3,000). In Alberta the real property report serves that role; in BC and Quebec the certificate of location or LTSA plan does.
What it does not cover
- Problems you knew about before closing and did not disclose to the insurer.
- Environmental contamination, Indigenous land claims, and matters outside the registered title.
- Physical condition of the home. That is the inspection's job.
- Zoning changes or new work orders after closing.
- Anything a home warranty or property insurance covers.
Worked example from the calculator
$650,000 house in Ottawa, $585,000 mortgage:
| Item | Amount |
|---|---|
| Lender's policy | $275 |
| Owner's policy, bundled | $150 |
| Title insurance line | $425 |
| New survey instead (not required with title insurance) | $0 (saved $1,500 to $2,500) |
When you might skip the owner's policy
Almost never worth skipping at these prices, but: a cash purchase with a recent survey in a Torrens-system province (BC, Alberta, the Prairies) where the land registry itself guarantees title has a lower residual risk. Even there, the fraud coverage is why most buyers take it.
Frequently asked questions
Is title insurance mandatory in Canada?
Not by law, but nearly all lenders require a lender's policy as a condition of the mortgage. The owner's policy is optional.
How much does title insurance cost?
About $300 to $600 for lender and owner policies together on a typical home, paid once at closing through your lawyer.
Does title insurance replace a survey?
For most lenders' purposes, yes. It covers the survey-type risks (encroachments, setbacks) without a new survey, which is why it is common in Ontario and Atlantic Canada.
Does title insurance cover title fraud?
Yes. Fraudulent sale or mortgage of your property by an impostor is a core coverage, including legal costs to restore title.
Can I buy title insurance after closing?
Yes. Existing-owner policies are available at any time, at a somewhat higher premium.
Sources
- Financial Services Regulatory Authority of Ontario, title insurance — checked 14 Sept 2026
- FCT, Stewart Title Guaranty Company, Chicago Title Insurance Company — published rate information — checked 14 Sept 2026
- Law Society of Ontario, title insurance and surveys — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It does not constitute legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before you rely on them.