Title Insurance in Canada: Full Guide
This Page's Content Was Last Updated: January 22, 2026
- Title insurance protects you from financial losses caused by title defects and title fraud.
- A title defect can lead to losses from liens left by the previous owner, errors in public records, boundary disputes and undisclosed easements.
- The title insurance premium is a one-time cost typically between $200-$500 in Canada, but it can reach $1,000 in expensive markets like Toronto. It varies based on province, property value and insurer.
- Title insurance coverage lasts as long as you own the property and may be passed down to your heirs.
What Is Title Insurance?
Title insurance protects you if a third party has an unexpected lien, easement, or claim on your land. Title insurance protects you from financial losses related to any defects or errors on your property title. Title insurance also shields you from fees associated with the legal costs of fixing title errors.
A mortgage lender typically requires you to get title insurance when getting a mortgage. This one-time cost is part of your closing costs. Title insurance protects you and your lender in the event there are any outstanding claims or any other title defects on your new property.
Defects Covered by Title Insurance
| Title Defects | Description | Examples |
|---|---|---|
| Liens | A contractor, tax authority, or lender who hasn't been paid can link a lien to the property. You don't want to be stuck paying the previous owner's outstanding invoices. |
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| Title Errors | There could be errors in your title, such as if the title was improperly registered or if there is an issue with the public records for the property. Examples could include a previous owner who hasn't been discharged from the title or spelling mistakes that grant the title to someone else. |
|
| Title Defects | These are issues that can affect your property ownership that was not known beforehand at purchase. For example, there might be easements that were not documented or boundary disputes with your neighbours resulting in encroachment. Perhaps there are even issues with zoning by-laws that have been unaddressed by the previous owner that could affect your use of your property. |
|
| Fraud | Title fraud can include someone impersonating the owner of the property or forging documents. It also protects someone from stealing your title and then selling the home or getting a mortgage to receive money from it. |
|
Title is a term used by attorneys to refer to the right of ownership over land. When you buy a house, you receive the title to that property. The title is then filed in the government's land registration system.
However, the full title is not transferred in some instances, as another party may have partial ownership of your new land. This could be due to previously unpaid property taxes, a defect in the land registration system, or a variety of other reasons.
Title vs Deed
A title is not the same thing as a deed. A title refers to the ownership of a property. A deed is a document that transfers the title to another person. When purchasing a home, a property deed transfers the property’s title from the seller to the buyer.
What Does Title Insurance Cover
The two types of title insurance protect different parties.
- Lender’s Policy: This is the policy required by most mortgage lenders. It protects the lender in case a title defect is discovered after closing.
- Owner’s Policy: This optional policy protects the homeowner from any financial losses caused by title-related defects for as long as the homeowner holds the property.
Both the lender's and owner's policies protect against:
- Existing liens on the title (e.g. unpaid debts from previous owner, mortgages, or taxes secured against the property).
- Previously unknown title defects that affect ownership rights.
- Encroachment and boundary issues (e.g. needing to remove a building because it's on your neighbour's land)
- Title fraud (e.g. identity theft, forged documents, fraudulent transfers)
- Survey and public records errors
Your lender’s policy may need renewal on refinance with a new lender, but your owner’s title insurance policy will cover you for as long as you own your property, and it will cover the losses up to the maximum coverage provided in the policy. It may also cover most legal charges involved in restoring the title of your home.
Title Insurance Exclusions
Title insurance covers many things, but some title-related exclusions exist. Your policy may not cover:
- Known title defects
- First Nations land claims
- Loss of property due to mortgage default
Your coverage may include more exclusions. It is important to carefully analyse your policy in full to ensure it covers everything you need.
Other Exclusions
Title insurance does not cover the physical condition of the house, such as a home insurance policy. It does not protect you from non-title issues. In general, your title insurance does not provide coverage for:
- General home wear and tear
- Flood damage, fire, or sewage backup
- Burglary
- Additional non-title losses and damages
Make sure to read your title insurance policy for a complete list of exclusions, restrictions, and terms and conditions.
If your title insurance policy has explicitly legal services coverage, you may be able to make a malpractice claim if the error was from your lawyer’s negligence. Not all title insurance companies offer legal service coverage, so it is important to research whether you need it and what companies may offer you this coverage. If your title insurance policy does not cover legal services and your lawyer makes a mistake, you may need to sue the lawyer for damages.
How to Buy Title Insurance?
In general, you will usually be required to buy a lender's title insurance policy upon completing your property purchase agreement. Occasionally, an owner's policy is required at closing to ensure everyone is protected, but this is typically optional. Owners can also purchase protection at any time - even after owning the property for multiple years.
Although title insurance costs range from $200 to over $1,000, prices vary based on the value of your home, insurance provider and province you live in.
Canada’s Major Insurance Companies
Tips When Purchasing Title Insurance
- Make sure your property value is insured in full.
- Carefully review your policy to make sure property details are correct.
- Understand the title-related issues your policy does not cover.
- Talk to your lawyer or insurance provider to clarify any questions you have about the policy.
Title Insurance Requirements By Province
Ontario
In Ontario, all insurance companies are licensed and overseen by the Financial Services Regulatory Authority of Ontario (FSRA). Most mortgage lenders typically require homebuyers to purchase lender's title insurance. Although buyer's title insurance is not mandatory in Ontario, real estate lawyers are required to advise their clients of the policy as an option to purchase.
British Columbia
The BC Financial Services Authority (BCFSA) oversees the province's financial system. Most mortgage lenders usually require the purchase of lender's title insurance. However, lawyers in BC are not mandated to advise clients on buyer's title insurance.
Quebec
The Autorité des Marchés Financiers (AMF) regulates the financial industry in Quebec. While owner's title insurance is not mandatory in Quebec, most lenders will require lender's title insurance to protect themselves.
Alberta
Alberta Superintendent of Insurance (under Alberta Treasury Board and Finance) regulates the insurance sector. While your lender may require title insurance in Alberta, the province does not mandate it. Lawyers are not required to discuss buyer's title insurance options with clients.
How to Use Title Insurance
If you are in a scenario that requires you to use your title insurance policy, follow these steps for the best results:
- Double-Check Your Insurance Policy: to ensure that your coverage covers the title-related issue. Unless your insurance policy specifically covers it, your insurer will not reimburse you for a problem not mentioned in the policy.
- File Your Claim as Soon as Possible: You can either review your policy or ask your insurance provider to learn how quickly you must submit a claim.
- Make Your Claim in Writing: Write an email or letter to the title insurance company and explain the losses you have incurred due to a title-related issue. Include your policy number, contact information, and any relevant documents.
- Store a Copy of Your Claim for Future Reference: Once the title insurance firm has received your claim, it will be evaluated to see whether you qualify for coverage under your policy. The title insurance company will then contact you to let you know that the claim was received. You should receive a response about your case within a reasonable amount of time.
What Are the Benefits of Title Insurance?
Title insurance is not a legal requirement in Canada. However, your mortgage lender may require you to purchase title insurance to obtain a mortgage with them. Title insurance also comes with a host of benefits, including:
- Peace of Mind: Issues and defects might only be spotted years after you have already purchased the home. With title insurance, you won’t have to worry about your homeownership status, and you don’t need to worry about past debts from the previous owner coming back to haunt you.
- Survey Coverage: With title insurance, you might not need to have a land survey conducted or provide your lender with a Real Property Report in the case of Alberta.
- Savings: May reduce the extent of title searches by your real estate lawyer since that is already done through your title insurance. This saves your lawyer time and saves you money.
Frequently Asked Questions
When Do You Usually Purchase Residential Title Insurance?
You'll most likely need to buy a residential lender's title insurance when you acquire your house. However, you can purchase buyer's title insurance at any time after the closing. It's worth noting that title insurance for existing homeowners is somewhat different from the type taken out when purchasing a home.
How Much Does Title Insurance Cost?
Title insurance for individual residences varies in price based on the value of your property and the title insurance company you choose. However, the one-time payment typically costs between $200-$500 but may reach $1,000 for expensive markets, like Toronto or Vancouver.
How Long Does The Coverage Last?
Residential title insurance covers you while you own the property. Additionally, most policies extend coverage to your heirs, spouse, or children if they inherit the house under certain conditions.
Where To Purchase Title Insurance?
You can buy title insurance from one of the major Canadian title insurance companies listed above. Additionally, you can work with a lawyer or insurance broker.
Disclaimer:
- Any analysis or commentary reflects the opinions of WOWA.ca analysts and should not be considered financial advice. Please consult a licensed professional before making any decisions.
- The calculators and content on this page are for general information only. WOWA does not guarantee the accuracy and is not responsible for any consequences of using the calculator.
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- Interest rates are sourced from financial institutions' websites or provided to us directly. Real estate data is sourced from the Canadian Real Estate Association (CREA) and regional boards' websites and documents.