How Much Does Title Insurance Cost?

As a real estate broker in Ontario, one of the questions that I frequently receive from clients is “How much does title insurance cost?” It’s a valid question and one that can be tricky to answer without some background knowledge.

Title insurance is a form of insurance that protects you, the property owner, against any financial loss or legal issues that may arise from defects in the title of the property. This can include issues such as liens, encumbrances, fraud, or errors in public records. Essentially, title insurance provides an extra layer of protection to ensure that you can enjoy your property without any unexpected surprises.

So, how much does title insurance cost? The short answer is that it depends on several factors, including the type of property, its value, the mortgage, and the title insurer. Premiums are a one-time fee, typically paid at the time of closing, and are not a monthly expense.

In Ontario, there are four main title insurance companies: Title Plus, First Canadian Title, Stewart Title, and Chicago Title. Each company has their own set of rates and fees, which can vary depending on the property and mortgage details.

To give you an idea of what to expect, let’s take a look at some example quotes for a resale single-family home with a bank mortgage:

Purchase Price: $500,000, Title Insurance Premium: $442.00
Purchase Price: $750,000, Title Insurance Premium: $712.80
Purchase Price: $1,000,000, Title Insurance Premium: $982.80
It’s important to note that these figures are provided as examples only, and your specific quote may differ. To obtain an exact quote for your property, you can visit the title insurance provider’s website or contact your real estate lawyer.

While title insurance is not mandatory in Ontario, it is strongly recommended as it provides an extra layer of protection for your investment. The cost of title insurance is a small price to pay for the peace of mind that comes with knowing that your property is protected.

In conclusion, the cost of title insurance varies depending on several factors, and it’s important to obtain an exact quote for your property. As a real estate broker, I always advise my clients to consider title insurance as part of their overall investment in a property. The small premium paid upfront can potentially save you from unexpected legal or financial issues down the road.