Title Insurance in Canada: What It Is and Why It Matters

Buying a home in Canada is exciting — but it also comes with paperwork, decisions, and a long list of hidden costs. One term you might hear thrown around during the closing process is title insurance. It sounds like something technical your lawyer deals with, but it’s actually a low-cost way to protect one of the biggest purchases of your life.
In this guide, we’ll break down what title insurance is, how it works, what it covers (and what it doesn’t), and whether it’s something you really need.

What is Title Insurance, Exactly?

Let’s start with the basics. Title insurance is a type of insurance that protects you — and sometimes your mortgage lender — against problems with the legal ownership of your home. These problems are usually hidden issues that come up after you’ve bought the home.
Think of it like this: You bought your house, moved in, and months later, someone shows up claiming they’re the real owner. Or a long-forgotten unpaid tax pops up that you knew nothing about. Title insurance can step in to deal with those situations.
And the best part? It’s a one-time payment at closing — no monthly fees, no renewals.

What Does Title Insurance Cover?

Here’s what most standard title insurance policies will protect you from:

• Title fraud: If someone impersonates you and tries to sell or mortgage your property, the insurance kicks in to defend your ownership.
• Forgery or mistakes in public records: If there was a clerical error, missing signature, or fraudulent document in the home’s history, you’re protected.
• Unpaid property taxes, utility bills, or liens: If the previous owner left behind unpaid debts tied to the property, you won’t be on the hook.
• Survey or boundary issues: If a neighbour’s fence turns out to be on your land (or vice versa), the policy can cover legal costs.
• Zoning or permit problems: For example, if a past owner added a deck without a permit and it now violates bylaws, you may be covered.

Basically, it helps with problems you couldn’t have known about when buying the home — even if a lawyer reviewed everything.

And What Doesn’t It Cover?

Title insurance isn’t a catch-all. It won’t cover:

• Any issues you already knew about before buying the property
• Environmental hazards (like soil contamination)
• Indigenous land claims
• Problems revealed in a new survey or home inspection
• Renovations you do after buying the home

It’s also not a replacement for homeowners insurance. Think of it as legal and paperwork protection — not physical damage protection.

How Does Title Insurance Work?

You typically buy title insurance during your home’s closing process, and your real estate lawyer usually arranges it on your behalf. The premium is a one-time cost, usually between $250 and $400, depending on where you live and how much the home costs.
Once the policy is in place, it protects you for as long as you own the property. In many cases, the coverage extends to your spouse and children if the home is passed down to them.
If a covered issue comes up, you’d file a claim with the insurance company — and they’ll handle the legal process and costs involved, up to your policy limit.

Who Actually Needs Title Insurance?

Technically, no one is required to buy title insurance in Canada. But practically speaking, almost everyone should.
n fact, most lenders won’t approve your mortgage unless you buy lender’s title insurance to protect them. This version doesn’t protect you — just the lender’s interest in the home.
To protect yourself, you’ll need a homeowner’s title insurance policy, which is separate from the lender’s version.
It’s particularly useful for:

• First-time buyers who don’t want unexpected legal costs
• Buyers of older properties with complex histories
• Anyone who wants peace of mind and low-cost protection

Types of Properties Covered by Title Insurance

• Condos
• Townhomes
• Cottages or recreational properties
• Vacant land
• Multi-unit investment properties
• Commercial buildings (with a separate commercial policy)

Whether you’re buying your primary home or a rental unit, title insurance helps protect your legal claim to the land and property.

How Much Does Title Insurance Cost in Canada?

The price of title insurance depends on the purchase price of the home and the province it’s located in. That said, most homeowners pay somewhere between:
👉 $250 and $400 — one time only
For example, in Ontario, a $500,000 home might have a title insurance premium around $300. In B.C. or Alberta, it could be slightly higher or lower. Your lawyer will usually include this cost in your final closing statement.

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Where Can You Get Title Insurance in Canada?

You can get title insurance through your:

• Real estate lawyer (most common)
• Insurance broker
• Directly from providers (some offer online applications)

Some well-known title insurance companies in Canada include:

• FCT (First Canadian Title)
• Chicago Title Insurance
• Stewart Title
• TitlePLUS (via Lawyers’ Professional Indemnity Company)
• Travelers Guarantee Company of Canada

Make sure to ask your lawyer which provider they use — and whether you’re getting just lender protection or full homeowner coverage.

Is Title Insurance Worth It?

In almost every case, yes — it’s worth it. Here’s why:

• It protects you from major financial and legal headaches
• It’s a one-time cost (no monthly premiums!)
• It lasts as long as you own the property
• It covers things even your lawyer can’t guarantee

For just a few hundred bucks, it’s one of the best ways to reduce risk during what’s likely the largest investment of your life.

Frequently Asked Questions About Title Insurance in Canada

Is title insurance mandatory?
No — but most lenders will require a policy that protects them. You’ll need a separate one to protect yourself.
How long does it last?
As long as you own the home — sometimes longer, depending on the provider.
Can I get it after I buy my home?
Yes, but it’s best (and cheaper) to get it at the time of closing.
Does it cover renovation issues?
Only if the work was done before you bought the home and it violates zoning or bylaws. It won’t cover changes you make.
Can I transfer it to someone else?
Some policies extend to spouses or heirs. Check with your provider.

Buying a Home? Don’t Skip Title Insurance

Title insurance protects your ownership rights and covers hidden issues like fraud, errors, or disputes. Learn how it works, when it’s needed, and why most Canadian homeowners should consider it.
Learn About Title Insurance in Canada