Does my lender require title insurance when I get a mortgage in Ontario?

Yes — virtually all institutional lenders in Ontario require a lender's title insurance policy as a condition of advancing mortgage funds. This protects the lender against losses arising from title defects that are not discovered in the title search — things like existing liens, fraud, survey irregularities, or competing ownership claims that could affect the lender's security.

Lender title insurance is separate from owner's title insurance, which protects you as the buyer. Lender policies cover only the lender's interest; they do not protect you if a title problem reduces your equity or results in a claim against you personally. For this reason, most real estate lawyers recommend that buyers purchase their own owner's title insurance at the same time — the additional cost is modest given that it provides coverage for as long as you own the property.

In Ontario, title insurance is arranged through your lawyer and is funded at closing as part of your closing costs. The premium is a one-time payment. Common providers include FCT, Stewart Title, and Chicago Title. Your lawyer will discuss which policy type fits your transaction, the coverage limits, and any specific exclusions. If you are purchasing in a situation with known title issues — such as encroachments, open permits, or old unregistered liens — title insurance is especially important to have.