Do I need title insurance when I refinance my mortgage in Ontario?

When you refinance a mortgage in Ontario, your new lender will typically require a lender's title insurance policy as a condition of advancing the new loan. The lender wants to protect their new mortgage against title defects — just as a lender does on any purchase. Your real estate lawyer (who handles the refinance) will arrange this lender's policy at closing, and the cost is part of your refinancing legal fees.

As for the homeowner: if you have an existing owner's title insurance policy from when you originally purchased the property, that policy generally continues to protect you through the refinance — there is no need to buy a new owner's policy just because you are refinancing. However, if you purchased your home at a time when title insurance was not standard and you do not have an owner's policy, a refinance is an opportunity to consider obtaining one.

One important note: the new lender's policy issued on a refinance protects the new lender, not you. If you do not have your own existing owner's policy and you forgo getting one, you are unprotected if a title defect or fraud surfaces post-refinancing. Your lawyer can advise on whether you already have an owner's policy and whether obtaining one alongside the refinance is worthwhile in your situation.