Do I need title insurance for a brand-new home purchase in Ontario?

Yes — title insurance is just as important for a new-build purchase as for a resale, and in some respects the risks are different. When you buy a brand-new home from a builder in Ontario, you might assume the title is clean because no one has owned it before. But new builds carry their own title exposures: builders often have construction mortgages registered against the land and against each unit or lot. Those construction mortgages must be discharged before you can take clean title. If a discharge is missed or delayed, you could close on a property that still has the builder's lender's charge on it.

There are also lien risks unique to new construction. Subtrades and suppliers who worked on the project may have unpaid claims and can register construction liens. Under Ontario's Construction Act, there is a holdback mechanism designed to protect lien claimants, but liens can still be registered during the applicable period and may not have fully resolved by the time you close.

Title insurance for a new build also typically covers zoning certificate issues, survey discrepancies, and post-closing municipal work orders arising from construction deficiencies. Your lawyer will arrange the policy as part of the new-build closing process, and the lender will require it just as on any purchase.