Do You Need Title Insurance in Ontario? (2027 Guide)

Published 2 November 2026 · By Jatin Dua, Broker of Record, RE/MAX Quantum Realty

What's Your Home Worth Right Now?

Get a free AI-powered price range for your property in under 90 seconds, based on recent GTA comparable sales. No name or address required.

Get My Free Estimate →

Older brick detached Toronto house with a wooden fence along the lot line (illustrative)

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Title insurance is not mandatory in Ontario, but lenders often require a policy. Here is who needs an owner’s policy in 2027 and what it covers.

Short answer

No, title insurance is not mandatory in Ontario, and lawyers must tell you so. Most mortgage lenders require a lender’s policy, which protects only the bank. An owner’s policy, a one-time premium, protects you against title fraud, old liens and similar risks for as long as you own the home.

This guide is for Ontario buyers who see “title insurance” on their lawyer’s bill and want to know whether they actually need it, and for owners who never bought it and are worried about title fraud. You will get a straight answer, the difference between the two kinds of policy, what they do and do not cover, and a simple way to decide for your own purchase in 2027.

Is title insurance mandatory in Ontario in 2027?

No. No Ontario law forces a homeowner to buy title insurance. The Law Society of Ontario’s rules go further: a lawyer acting on a purchase must tell you that title insurance is not mandatory and is not the only way to protect your interests (Rule 3.2-9.4).

In practice, though, most buyers end up with some title insurance, because many mortgage lenders require it. Scotiabank, for example, notes that many lenders make a lender’s title policy a condition of financing. So the real 2027 question is not “do I need title insurance,” but “do I need an owner’s policy on top of what my lender requires.”

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

They protect different people. Many buyers think they are covered because a title insurance charge appeared on their closing statement, when the policy only protects the bank.

	Lender’s policy	Owner’s policy	Land Titles Assurance Fund (Ontario)
Who it protects	Your mortgage lender	You, as owner	People who suffer certain losses from fraud or registry errors
Required?	Often, by the lender	Optional	Automatic, no premium
How long	While the mortgage is in place	As long as you own the home	Claims within 6 years of the loss
Cost	One-time premium, usually paid by you	One-time premium	None to apply
How you claim	Lender claims	You contact the insurer directly	Application to the Director of Titles, reviewed by a hearings officer

Source: Scotiabank, “What is title insurance and why does it matter when buying a home”; TitlePLUS (LAWPRO) homeowners page; Ontario, Compensation for loss from the Land Titles Assurance Fund (updated April 10, 2026).

Both policies can be in place on the same property at the same time. If you buy with cash, no lender is asking for anything, and you may end up with neither unless you ask your lawyer.

What does title insurance cover in Ontario?

Title insurance covers problems with your legal right to own and use the property that existed before you bought it, even if they surface years later. Scotiabank’s list of common covered risks includes:

Unknown defects in the chain of ownership, such as a past transfer signed by someone without authority.
Fraud or forgery, such as a forged signature or a mortgage registered without an owner’s knowledge.
Errors in public records.
Old liens that were never discharged, such as a past owner’s unpaid property taxes or contractor bills.
Encroachments, like a fence or shed over the property line, and some undisclosed easements.
Some zoning or permit problems, such as a basement finished without permits.

Exact coverage depends on the policy wording and its exclusions, so read them. I go through the exclusions in detail in what title insurance covers, and what it quietly replaces.

What title insurance does not cover

TitlePLUS, the title insurer backed by LAWPRO, says homeowners often try to claim for leaky roofs, flooding basements, mould or poor workmanship. Those are physical problems, not title problems, and are not covered on their own. A seller hiding a defect is not covered on its own either. And title insurance does not cover your future plans, such as an addition or a lot severance that zoning later blocks.

The exception is when a physical problem is also a title problem. TitlePLUS gives the example of a sunroom built without a permit by a former owner: the leak is not covered, but a municipal order to make the sunroom legal would be.

How much does title insurance cost in Ontario?

It is a one-time premium paid on closing, with nothing to renew. TitlePLUS describes the cost as relatively minor compared to the other costs in a purchase. The premium depends on the property value and the insurer. Policies are sold through lawyers, and I have not found a simple public price list from Ontario title insurers, so the honest answer is to ask your lawyer for the quote on your purchase price.

It usually shows up on your lawyer’s statement next to other closing items. In 2027 that list also includes land transfer tax and government registration fees, which rose to $86.42 per electronic registration on November 2, 2026. I list them all in buyer closing costs in Ontario for 2027.

Free tool — what can you actually afford?

Who should buy an owner’s title insurance policy in 2027?

Here is how I would think about it for common GTA situations. This is a starting point for the conversation with your lawyer, not a substitute for it.

Your situation	Owner’s policy worth it?	Why
Buying a resale house with a mortgage	Usually yes	The lender’s policy protects only the lender; an owner’s policy covers your equity and legal costs
Buying with cash, no mortgage	Strongly consider	No lender policy at all; a home with no mortgage can be a target for fraud
Older house with additions, decks or fences near the line	Yes, plus ask about a survey	Permit and encroachment issues are common covered risks
Resale condo apartment	Usually yes	Covers title and fraud risks; it does not replace reading the status certificate
Long-time owner with no policy	Ask about an existing-owner policy	TitlePLUS sells an Existing Owner policy and says owners with no mortgage may face higher fraud risk

Source: My view as a broker, based on Scotiabank, TitlePLUS (LAWPRO) and Law Society of Ontario guidance. Your lawyer’s advice on your file comes first.

Does title insurance protect you from title fraud in Ontario?

Yes, title fraud is one of the main risks owner policies cover. In title fraud, someone uses forged documents or a stolen identity to transfer your home or register a mortgage against it. TitlePLUS says its policy covers the legal costs of defending your title if a fraud is committed against the property.

Ontario lists the steps to take if you suspect fraud:

Report it to your local police.
Tell your lawyer.
Contact your local land registry office or the Director of Titles.
Consider asking Equifax Canada and TransUnion Canada to put a free security freeze on your credit file, which can block new credit and mortgages in your name.

Ontario’s own page also tells owners to talk to their lawyer about the benefits of buying title insurance.

What is the Land Titles Assurance Fund, and is it enough on its own?

The Land Titles Assurance Fund is Ontario’s government backstop. Under the Land Titles Act, it can compensate people for certain financial losses from real estate fraud or from errors and omissions in the land registry, plus reasonable legal and other costs of the claim.

You must apply within six years of suffering the loss.
You file an application and affidavit with the Director of Titles, and a hearings officer decides whether you qualify and how much you get. A hearing may be held if the claim cannot be paid in full.
Ontario says that in most straightforward fraud cases where everyone co-operates, title can be returned and a compensation decision made within 90 days.

The fund costs you nothing, but it is a claims process, not an insurer working on your side. TitlePLUS points out that a policy can save a fraud victim from going through the Ministry filings and hearings without a lawyer. My post on title fraud and the Assurance Fund explains who bears the loss.

Watch out

Title insurance is not a home inspection and not a warranty. If the roof leaks or the basement floods, the policy will not pay for repairs unless the problem is also a covered title risk, such as an unpermitted addition that draws a municipal order. Get a proper inspection, read the seller’s disclosures, and on a condo, read the status certificate before you firm up.

Does title insurance replace your lawyer or a survey?

Not your lawyer. The Law Society’s commentary says title insurance is not a substitute for a lawyer’s services. Its rules also say your lawyer cannot take any payment from a title insurer for recommending a product, and must tell you that no commission is being paid. Most TitlePLUS policies also include legal service coverage for mistakes by the lawyer on the deal.

A survey is a closer call. TitlePLUS says a policy can remove the need for an up-to-date survey. But a policy pays if a boundary problem turns up; it does not tell you where the line is. If you plan a fence, pool or addition near a boundary, read surveys and what title insurance will not fix first.

My take

For almost every buyer I work with in Toronto and the GTA, an owner’s policy is worth its one-time cost, especially for cash buyers, older houses and anyone buying a home they plan to own outright one day. The bigger mistake I see is not skipping title insurance; it is assuming it covers things it never will, like a wet basement. Ask your lawyer which policy you are getting, who it protects, and for a copy of the exclusions before closing.

What to do next

Ask your lawyer whether your file includes a lender’s policy, an owner’s policy or both.
Get the premium quote for your price and a copy of the policy’s exclusions before closing.
Tell your lawyer everything you already know about the property, so they can deal with it before closing or explain whether the policy would cover it.
If you already own a home without a policy, ask your lawyer about an existing-owner policy.
If you ever spot a document registered against your home that you did not sign, call the police, your lawyer and the land registry office the same day.

Need help with this? Talk to me.

I’m Jatin Dua, Broker of Record at RE/MAX Quantum Realty, and I’m the best agent to do this kind of work for you in Toronto and across the GTA. Over $100 million in GTA sales and 100+ families helped sell. Feel free to contact me any time: call or text 833-330-1925 or email [email protected].

Book a free call Call 833-330-1925

Frequently asked questions

Do I need title insurance in Ontario?

No, it is not required by law. The Law Society of Ontario requires lawyers to tell buyers that title insurance is not mandatory and not the only option. In practice many mortgage lenders require a lender’s policy, which protects only the lender. Whether you also buy an owner’s policy in 2027 is your choice; most buyers with a mortgage or older home benefit from one.

Is title insurance mandatory for a mortgage in Ontario?

Often, yes, for the lender’s policy. Many lenders make a lender’s title insurance policy a condition of the mortgage, and the buyer usually pays its one-time premium on closing. That policy protects the lender for as long as the mortgage is in place. It does not protect your own equity; for that you need a separate owner’s policy.

How much does title insurance cost in Ontario in 2027?

It is a one-time premium paid on closing, with no renewals. The price depends on the property value and the insurer, and policies are sold through lawyers, so ask your real estate lawyer for the exact quote on your price. TitlePLUS describes the cost as relatively minor compared with the other costs in a home purchase.

What does title insurance not cover in Ontario?

Physical problems such as leaky roofs, flooding basements, mould or poor workmanship are not covered on their own. Neither is a seller hiding a defect, or your future plans, such as an addition that zoning blocks. Coverage applies only when the problem is also a title risk, such as unpermitted work that leads to a municipal order. Read your policy’s exclusions.

Does title insurance cover title fraud in Ontario?

Yes, title fraud is a standard covered risk in Ontario owner’s policies. If someone forges documents to transfer your home or register a mortgage on it, the policy covers covered losses and, for TitlePLUS policies, the legal costs of defending your title. Ontario’s Land Titles Assurance Fund is a separate government backstop, with claims allowed within six years of the loss.

Can I buy title insurance after I already own my home in Ontario?

Yes, some insurers offer it. TitlePLUS, backed by LAWPRO, sells an Existing Owner policy for Ontario homeowners who did not get title insurance when they bought, and notes that owners with no mortgage may face higher fraud risk. Policies are sold through lawyers, so ask a real estate lawyer to quote one for your property.

How long does title insurance last in Ontario?

As long as you own the home. An owner’s policy is paid once and stays in force for your ownership, and TitlePLUS says its coverage extends to your spouse, children or heirs who own it after you. A lender’s policy lasts while the mortgage is in place. Neither needs renewal premiums.

What is the Land Titles Assurance Fund in Ontario?

It is Ontario’s government fund that compensates people for certain financial losses from real estate fraud or land registry errors, plus reasonable legal costs. You must apply to the Director of Titles within six years of the loss, and a hearings officer decides the claim. Ontario says straightforward fraud cases can be decided within 90 days. It does not replace title insurance.

Does title insurance replace a survey in Ontario?

Not fully. TitlePLUS says a policy can remove the need for an up-to-date survey on closing, but title insurance does not tell you where your boundaries are. Title insurance pays if a covered boundary problem turns up later. If you plan a fence, pool or addition near the property line in 2027, an up-to-date survey is still the only way to know exactly where the line sits.

Sources

More from the library

Browse every article

Do You Need Title Insurance in Ontario in 2027?