A one-time insurance policy that protects the mortgage lender against financial loss caused by defects in the property's title, such as fraud, forgery, encroachment issues, or errors in public records. Most lenders in Ontario require title insurance as a condition of the mortgage. There is also owner's title insurance, which protects the buyer's interest.
Why It Matters
Lender's title insurance is typically a non-negotiable closing cost that your lender will require. The good news is it's a one-time premium (usually $250 to $500) and it can actually reduce your closing costs by eliminating the need for a full survey. Your lawyer will arrange it as part of the closing process.
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