September 11, 2025 | Buying
What Is Title Insurance in Ontario?
Buying a house involves a lot of fast-moving pieces. Finding a suitable property in a great neighbourhood with all of the features on your must-have list is your highest priority. In the sea of checklists and to-do lists, one question that might not be on your mind is, “What is title insurance, and do I need title insurance?” Ensuring adequate coverage is critical to protect your ownership of your property. In this post, we’ll answer a few of your questions about how title insurance works in Ontario.
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Exactly What Is Title Insurance?
How does title insurance work to protect your home? Real estate is a tangible asset, one that you can see and touch. However, your ownership is intangible. In the modern age, it’s essentially your name on the deed as registered with the Land Registry Office.
Imagine if someone could change your title to their name without your knowledge. They can potentially borrow against your home or even sell your property to another buyer and pocket the funds. This type of real estate fraud is fortunately rare, but it has happened. Title insurance is your first and best line of defence.
Identity theft may be among the most frightening aspects of modern life, especially as it pertains to your most valuable asset. However, it’s not the only thing title insurance protects you from. A good policy also offers coverage against other flaws with your title, such as clerical errors, building permit issues, and boundary and survey disputes.
How Long Does Title Insurance Last?
You’re not the only one with a stake in your property. If you have a mortgage, your lender also has an interest in ensuring that your title remains free and clear. As such, there are two different types of policies available.
Lender’s Title Insurance: This protects your lender against any issues with your title. The policy lasts as long as you have a balance on your mortgage. Once your loan is paid in full, the coverage expires.
Homeowner’s Title Insurance: This policy protects you from undiscovered flaws in your title that could otherwise come back to haunt you. It’s a one-time charge, and you are protected from the day the policy is in effect and for as long as you own the property.
Curious about what types of homes are available in Pickering and the GTA? Find out here in our featured listings.
Is Title Insurance Mandatory in Ontario?
At the time of this writing, neither homeowner’s or lender’s title insurance is required by law. Nevertheless, it is highly recommended to the point of necessity.
If you have a mortgage, your lender will almost certainly require a lender’s policy before finalizing your loan. No one will force you to accept a policy, but the Financial Services Regulatory Authority of Ontario (FSRA) strongly advises you to at least consider it, as do your friendly real estate agents here at Team Rajpal.
Do you have your eye on Pickering as your next home? Here are a few things to look forward to:
Where to Buy Title Insurance in Ontario?
Your real estate lawyer will likely set up title insurance at the time of your purchase. Registering a policy upon closing provides the widest range of protection against title defects that existed before your purchase that could present problems later.
If you’ve owned your home for a while, you can check your documentation to see if a policy exists. If title insurance is either lacking or inadequate, contacting a real estate lawyer is your next logical step. Though you can approach insurance companies directly, you’ll likely get more accurate and unbiased advice from a lawyer.
Protection begins once your policy goes live. When adding it after you take possession, it covers issues from your policy date and beyond. Without this protection, it will be your responsibility to handle it and cover all associated costs to repair your title.
How Much Is Title Insurance in Ontario?
Costs can vary depending on the complexity of the transaction. Average prices can range from approximately $200 to $500. An online title insurance calculator can give you an estimate, but several factors can affect the final amount.
Regardless of the cost, this is not an area where you want to scrimp and save. You have a massive financial investment riding on your title, and it’s worth a premium to ensure it is well protected.
Who Pays for Title Insurance?
Whether your lawyer registers a lender’s policy, a homeowner’s policy or both, it is generally the buyer who pays for title insurance. It is now so prevalent that it is considered a standard part of the closing costs along with land transfer taxes and other fees.
Often, a lender’s policy is a condition of the loan, but the buyer still benefits indirectly as it often leads to a more straightforward closing process.
What Does Title Insurance Not Cover?
Title insurance is designed to guard the intangible aspects of your property. This protection does not cover any damage or hidden flaws in the physical structure itself. There are also some limitations in its coverage of the title.
For example, if you were aware of an existing lien or encumbrance and placed an offer anyway, this flaw would be exempt. As with any insurance policy, it only protects you once your enrollment is approved.
Looking for more tips and advice on how to buy a house? You’ll get plenty of insight in the posts below:
- Let’s Review the Process of Buying a House in Ontario
- What to Consider When Buying a Pickering Home
- Pickering Vs Toronto: Where Should You Buy a Home?
Is Title Insurance Worth It?
If you ask a homeowner who has never had a problem, they might tell you title insurance isn’t worth the added expense. However, anyone who has faced the stress of fraud or a lien or an encumbrance knows how much money and stress it can save you. In a worst-case scenario, it might even save your home.
As a one-time purchase, your cost to obtain title insurance is relatively small compared to the peace of mind it provides. You pay once, and are covered for the duration of your homeownership. In a perfect world, you’ll never need title insurance. However, if you need it, you will thank yourself for adding this valuable protection.
Do you have more questions about buying or selling your home? Our Pickering real estate agents are happy to help you make the most of your sale. Reach out today at info@teamrajpal.com or call 647-372-2997 to get started.
Have Questions?
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