What is title insurance and do I need it when buying in Ontario?

Title insurance is a one-time premium policy that protects you — and your lender — against losses arising from problems with the ownership history of the property. Covered risks typically include fraud, survey errors, encroachments, zoning violations that pre-date your purchase, and claims that could challenge your ownership after closing.

In Ontario, most lenders require title insurance as a condition of the mortgage. Even if you are buying without financing, your lawyer will almost certainly recommend it. The policy protects you going forward from the moment you take title, and the cost is generally a few hundred dollars paid once at closing — there are no annual renewals.

Title insurance does not replace a survey; it insures against the risk that a survey problem exists without requiring you to fix it upfront. It also provides fraud protection, which has become increasingly valuable given the rise of title-fraud schemes in Ontario. Review the policy with your lawyer so you understand what is and is not covered.