Updated: April 2025  |  bremo.io financial guides

Title Insurance in Canada: What It Covers and What It Costs

Title insurance is one of the most misunderstood — and undervalued — protections available to Canadian homebuyers. For a one-time premium of $150 to $400, it provides coverage for a range of title-related problems that can surface years after your purchase. Here is what you need to know.

What Is Title Insurance?

Title insurance is a one-time-premium insurance policy that protects against losses from defects in the title to your property. Unlike home insurance (which covers future events like fire or flood), title insurance covers past events that may not have been discovered during the lawyer's title search.

There are two types: a lender's policy (protects your mortgage lender) and an owner's policy (protects you). Both are typically purchased at closing, and most lawyers recommend both.

What Title Insurance Covers

Coverage varies by insurer but typically includes protection against:

Title Defects

• Forgery or fraud in documents in your chain of title
• Errors or omissions in public records
• Unknown wills, undisclosed heirs, or court orders affecting ownership
• Unregistered easements or rights of way not shown on the title search

Survey and Boundary Issues

• Encroachments (a fence, garage, or addition that crosses onto a neighbour's property)
• Encroachments from a neighbouring property onto yours
• Violations of building setback requirements or other zoning regulations
• Missing survey documentation

Pre-Existing Work Without Permits

• Construction, renovations, or additions completed without permits that require retroactive compliance or removal
• Work that does not comply with building codes at the time of construction

Forced Removal or Loss of Property

• Someone challenging your ownership and succeeding
• Government taking your property without adequate notice due to pre-existing violations

Real Estate Fraud

Title fraud — where a fraudster transfers title of your home to themselves and takes out a mortgage on it — is a growing concern in Canada. Owner's title insurance provides protection if this occurs, covering the cost to recover your title and any associated legal fees.

What Title Insurance Does NOT Cover

• Problems you created yourself after closing (unpaid bills, unauthorized additions you make)
• Physical condition of the property (roof, furnace, structure)
• Environmental contamination discovered after closing
• Issues disclosed to you before closing
• Matters that a current survey would have revealed if you had obtained one

How Much Does Title Insurance Cost?

Title insurance in Canada is a one-time premium paid at closing. There are no annual renewals.

The lender's policy is typically slightly less expensive. Your lawyer will usually arrange both simultaneously and include the cost in their disbursements.

Major Title Insurance Providers in Canada

The main title insurers in Canada are:

• FCT (First Canadian Title) — largest provider in Canada
• Stewart Title Guaranty Company
• Chicago Title Insurance Company
• TitlePLUS — administered through the Law Society of Ontario

Your lawyer will typically recommend and arrange the policy. You can ask about the specific insurer and policy terms if you have questions.

Is Title Insurance Required?

Lenders often require a lender's policy as a condition of their mortgage. The owner's policy is technically optional in most provinces — but nearly every real estate lawyer in Canada recommends it. Given the premium cost relative to the protection, declining it to save $200 to $300 is generally not advisable.

Do You Need Title Insurance on New Construction?

Yes. New construction buyers should still obtain title insurance. Common new construction title issues include:

• Liens from unpaid subcontractors (construction liens)
• Errors in lot boundaries or survey
• Permit and inspection issues not resolved at closing
• Disputes over common elements in condo developments