Title Insurance Canada Guide

Title insurance costs $300–$500 as a one-time premium and protects you for as long as you own the home. Here's exactly what it covers and why you need it.

What Is Title Insurance?

Title insurance is a policy that protects homeowners (and their lenders) against losses arising from problems with the title — the legal ownership record — of a property. Unlike most insurance, which protects against future events, title insurance primarily protects against past events that were unknown at the time of purchase: title defects, liens, encumbrances, or fraud that existed before you bought the home. It is a one-time premium paid at closing and provides coverage for as long as you own the property.

What Title Insurance Covers

• Title fraud: someone forges documents to fraudulently transfer your property's title or place a mortgage against it in your name without your knowledge
• Survey issues and encroachments: your fence is discovered to be on your neighbour's property; a structure encroaches on a registered easement
• Unknown liens or mortgages: a previous owner's creditor has a lien against the property that was not discovered in the title search
• Zoning violations: a previous owner built a deck, addition, or other structure without proper permits — the insurer defends against municipality orders
• Work orders and deficiency notices: outstanding orders from the municipality to correct code violations
• Gap period protection: claims arising in the gap between closing and the registration of your title
• Legal defense costs: even if a title claim is ultimately unsuccessful, title insurance pays your legal costs to defend it

Lender Policy vs. Owner Policy

Policy Type	Who It Protects	Cost	Required?
Lender's Policy	Your mortgage lender	Included in most lender packages	Yes — most lenders require it
Owner's Policy	You, the homeowner	$150–$350 additional premium	Strongly recommended but optional

Most buyers purchase a combined lender and owner policy. The incremental cost of adding owner coverage to the lender's policy is small — typically $150–$350 — and the protection it provides is comprehensive and permanent. Your lawyer typically arranges both at closing.

Title Insurance Cost in Canada

Title insurance premiums are set by the insurer based on purchase price. Common providers in Canada include FCT (First Canadian Title) and Stewart Title. Typical costs:

Purchase Price	Typical Owner Policy Premium
Under $500,000	$200–$350
$500,000–$750,000	$300–$450
$750,000–$1,000,000	$400–$600
Over $1,000,000	$500–$900+

Title Insurance vs. Property Survey

Historically, buyers obtained a property survey to confirm the boundaries and identify encroachments. Surveys cost $2,000–$4,000 and may not be available for older properties. Title insurance is widely accepted by lenders as an alternative to a current survey — it insures against the same encroachment and boundary risks at a fraction of the cost. However, if you are buying a property where boundary issues are a specific concern (rural properties, irregular lots), an actual survey provides more certainty.

Title Fraud — A Real Risk in Canada

Title fraud has increased in Canada, particularly in high-value markets. Fraudsters target mortgage-free or high-equity properties, forge owner identity documents, and transfer title or register fraudulent mortgages. Once a fraudulent mortgage is registered, the lender is entitled to enforce it — leaving innocent homeowners facing potential loss of their home. Title insurance provides a financial remedy and defends your legal title against fraudulent claims. It is one of the best value protections available to any Canadian homeowner.

How to Get Title Insurance

Your real estate lawyer arranges title insurance as part of the closing process. You don't need to shop for it separately — your lawyer will order it from an insurer such as FCT or Stewart Title and include the premium in your closing statement. Tell your lawyer upfront that you want both the lender and owner policies. The total cost will typically be $300–$500 and is paid as part of your closing costs on closing day.