Buying a home in Ontario is an exciting milestone — but it also comes with important legal and financial responsibilities. One crucial item that often gets overlooked in the closing process is title insurance.
So, what exactly is it? And do you really need it?
What Is Title Insurance?
Title insurance is a type of protection that shields homeowners and mortgage lenders from potential legal issues related to the ownership of a property.
When you buy a home, you're not just purchasing the building and land — you're also taking ownership of the title, or legal right, to that property. But what happens if there’s a hidden issue with that title?
That’s where title insurance comes in.
What Does Title Insurance Cover?
Title insurance typically protects against:
Fraudulent title transfers (e.g., someone forging your identity to transfer ownership)
Unknown title defects (issues that were missed during the title search)
Encroachments or survey errors (such as structures built on a neighbor’s land)
Outstanding liens (money owed by previous owners that wasn’t discovered before closing)
These problems can be costly and stressful — and title insurance helps you manage that risk.
Is Title Insurance Mandatory in Ontario?
No, title insurance is not legally required in Ontario. However, many lenders require it as a condition of approving your mortgage.
Even if it’s not mandatory, many real estate lawyers and REALTORS® recommend it because it provides an extra layer of protection for buyers — and peace of mind.
How Much Does It Cost?
Title insurance is a one-time fee, paid during your closing process. The cost depends on the value of your home but typically ranges from a few hundred dollars to around $1,000.
Once paid, you’re protected for as long as you own the property.
Should You Get It?
In most cases, yes — title insurance is a smart investment. For a one-time cost, you protect yourself from unexpected legal claims, fraudulent activity, and surprise financial burdens tied to your property's history.
That said, not all title insurance policies are the same. It’s important to review the coverage details with your lawyer and understand what’s included — and what’s excluded.
Final Thoughts
Title insurance might not be the most exciting part of the home buying process, but it’s one of the easiest ways to reduce risk when investing in real estate.
Whether you're a first-time homebuyer or an experienced investor, protecting your title ensures that your dream home doesn't come with hidden surprises.
Need Help Navigating the Home Buying Process?
As a trusted REALTOR® in Ontario, I’m here to guide you every step of the way — from offers to closing day and beyond.
📩 Feel free to reach out with your questions or book a personalized consultation.
DISCLAIMER
The content provided is for informational purposes only and is based on information available at the time during which it was created. No recommendations are express or implied either directly or indirectly. Do not rely on this content to make business or financial decisions or decisions otherwise. Always consult with a professional to seek advice relevant to your individual situation. Not intended to solicit contracted clients.