If my lender requires title insurance, do I also need my own owner's policy in Ontario?

When you get a mortgage, your lender will require its own title insurance policy — but that policy protects the lender's interest in the loan, not your equity. If a title problem surfaces after closing, such as an undiscovered lien, a boundary encroachment, or title fraud, the lender's policy pays out to the lender, not to you. Without your own owner's policy, you could be left to pay for the fix yourself or pursue the seller through the courts.

An owner's policy is separate coverage that protects your ownership interest directly, for as long as you own the property, for a single premium paid at closing — typically a few hundred dollars. Most Ontario real estate lawyers now arrange an owner's policy as a matter of course alongside the lender's policy, because it is inexpensive relative to the protection it adds and it can simplify the closing process.

Ask your lawyer directly whether both a lender's policy and an owner's policy will be obtained for your purchase, and read the coverage summary so you understand what is and is not insured — an owner's policy typically will not cover a problem you already knew about before closing.