Is title insurance mandatory in Canada?

It is not legally required for owners, but lenders frequently require a lender's title insurance policy as a condition of financing. Many buyers also choose an owner's policy for added protection.

What is the difference between an owner's and a lender's policy?

An owner's policy protects you, the homeowner, against title losses for as long as you own the home. A lender's policy protects only the mortgage lender's interest in the property and does not protect you directly.

Does title insurance replace a title search?

No. A lawyer or notary still searches title before closing. Title insurance complements that search by covering losses from issues the search may not catch, such as fraud or hidden liens.

Mortgage Glossary

What is Title Insurance?

Title insurance is a one-time-premium insurance policy that protects a homeowner or lender against losses from problems with a property's title. It covers issues such as title fraud, undisclosed liens, survey errors, and encroachments that a standard title search might not reveal. Unlike most insurance, it protects against problems that may already exist when you buy, not just future events.

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Quick answer

Also known as: Title insurance policy

Key points

Protects against title defects, fraud, undisclosed liens, and survey or boundary issues.
Paid as a single premium, usually at closing, with no ongoing payments.
An owner's policy protects you; a lender's policy protects the mortgage lender.
Covers certain problems that may already exist at the time of purchase.
Lenders often require a lender's title policy as a condition of the mortgage.

Title Insurance explained

When you buy a home, a lawyer or notary searches title to confirm the seller's ownership and identify any registered claims. Even a careful search can miss certain risks, such as fraud, forged documents, unknown liens, or boundary and survey discrepancies. Title insurance steps in to protect against financial loss from these hidden defects.

There are two main types. An owner's policy protects you, the homeowner, for as long as you own the property. A lender's policy protects the mortgage lender's interest and is often required as a condition of financing. The premium is paid once, usually at closing, and the coverage continues without ongoing payments. Title insurance is widely used in Canada and can also speed up closings by reducing the need for an up-to-date survey.

What a Title Insurance is for

Title insurance exists to shield buyers and lenders from losses tied to ownership and title problems that surface after closing. It provides a financial backstop for risks a title search cannot fully eliminate, giving both parties peace of mind that their interest in the property is protected.

How it can help you

For a single upfront premium, title insurance can cover legal costs and losses if a title defect, fraud, or boundary issue emerges after you take ownership. It can also smooth the closing process by reducing survey requirements. When you are arranging financing, your lender will often require a lender's title policy, and Lenderoo shops 40+ lenders for free so you can line up a mortgage that fits alongside your closing costs.

When it comes up

A year after closing, a homeowner learns that a previous owner left an unpaid contractor's lien that the title search missed. Because they purchased an owner's title insurance policy, the insurer covers the cost of resolving the lien rather than the homeowner paying out of pocket.

Example: Protection against title fraud

A homeowner with an owner's title insurance policy discovers that a fraudster used forged documents to attempt to transfer or remortgage their property without consent.

Because title fraud is a covered risk, the title insurer steps in to cover legal costs and losses associated with restoring the homeowner's clear ownership. Without the policy, the owner could face significant legal bills and the stress of resolving the fraud entirely on their own.

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Questions & answers

Title Insurance: frequently asked questions

Common questions Canadians ask about title insurance.

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Related mortgage terms

Title

The legal record of who owns a property and any claims or charges registered against it.

Read definition

Closing Costs

Fees and expenses paid when finalizing a real estate transaction

Read definition

Lien

A legal claim registered against a property as security for a debt or obligation.

Read definition

Survey (Real Property Report)

A document that maps a property's boundaries, structures, and any encroachments on the land.

Read definition

Lender

A financial institution or company that provides the money for a mortgage.

Read definition

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Mortgage Glossary

What is Title Insurance?

Find my best mortgage Back to glossary

Quick answer

Also known as: Title insurance policy

Key points

Protects against title defects, fraud, undisclosed liens, and survey or boundary issues.
Paid as a single premium, usually at closing, with no ongoing payments.
An owner's policy protects you; a lender's policy protects the mortgage lender.
Covers certain problems that may already exist at the time of purchase.
Lenders often require a lender's title policy as a condition of the mortgage.

Title Insurance explained

What a Title Insurance is for

How it can help you

When it comes up

Example: Protection against title fraud

A homeowner with an owner's title insurance policy discovers that a fraudster used forged documents to attempt to transfer or remortgage their property without consent.

Have a question about title insurance?

Lenderoo shops 40+ lenders for free and matches you with a mortgage professional who explains every term — and finds your best rate.

Get pre-approved free Talk to an expert

Questions & answers

Title Insurance: frequently asked questions

Common questions Canadians ask about title insurance.

Keep learning

Back to full glossary

Understand your mortgage with confidence

Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary