Ontario Buyers and Owners: Owner’s vs Lender’s Title Insurance

Owner’s vs lender’s policy: whose money is protected?

A lender’s title insurance policy protects the lender’s mortgage interest—not the homeowner’s ownership interest or equity. It responds if the mortgage is invalid or unenforceable, subject to the contract. Paying the premium does not make the homeowner the insured owner.[3][7]

• Lender’s policy: Coverage is usually based on the mortgage amount and continues while the mortgage remains in place.[3][7] A new lender may require another lender’s policy when a mortgage is refinanced.[8]
• Owner’s policy: This protects the owner against covered title-related losses, subject to exclusions and a maximum coverage amount.[3] Coverage generally continues while the insured owns the property and commonly extends to heirs through a will, a spouse following divorce and children following a parental transfer.[3]

FSRA describes title insurance as optional in Ontario, but a mortgage lender may require a lender’s policy as a financing condition. The borrower typically pays the premium at closing.[3][7] That requirement protects the lender; it does not automatically provide owner coverage.

Ask whether an owner’s policy is also being issued and review the actual policy wording. The available sources do not establish a universal Ontario owner-policy limit or standard cancellation and refund terms.[2][3][4][5][6][7][8]

How a known defect can affect coverage

A lien, encroachment, survey problem or other defect disclosed before closing is not automatically insured. Policies may cover unknown title defects, certain prior-owner liens, encroachments, survey errors and public-record errors, but defects known before purchase are among the possible exclusions.[3]

Treatment of liens and encroachments depends on the contract. FSRA lists unrecorded liens and encroachments among possible exclusions, while Scotiabank and WOWA describe certain liens and encroachments as commonly covered.[3][7][8] The policy wording, specific exceptions and whether the defect was known can determine the result.

Some insurers may cover certain known title defects for an additional fee, but the sources do not establish which defects qualify or whether every insurer offers this option.[3]

1. Disclose the issue: Give the lawyer and insurer the available details before closing.[3]
2. Check the exclusions: Ask whether the specific lien, encroachment or survey issue is excluded, then compare the answer with the issued policy.[3]
3. Ask about added coverage: If the standard policy excludes the defect, ask whether coverage is available for an additional fee and on what terms.[3]
4. Get the terms in writing: Review the covered risks, exclusions and property description in the policy.[3]

The sources do not confirm the underwriting criteria, added-coverage fees, waiting periods or known defects FCT, TitlePLUS or Stewart will accept.[2][3][4][6] FSRA advises discussing the need for and scope of coverage with a lawyer, title insurer, or insurance agent or broker.[3]

Keep insurance, boundary work and legal advice distinct

Title insurance addresses covered title-related financial losses under its policy. It does not perform a physical boundary survey or establish where a fence should be built. FSRA explicitly states that it does not replace legal advice; it also identifies possible exclusions for issues only revealed by a new survey or inspection.[3]

FSRA notes that survey coverage may be acceptable to some lenders as an alternative to a new survey or Real Property Report.[3] Acceptance for that financing purpose is different from obtaining measured boundary information for construction or an encroachment dispute. Ask the lawyer, insurer and qualified surveyor what the particular transaction and planned work require.

Residential and commercial forms need separate review. Residential examples about heirs, refinancing or existing-homeowner policies should not be assumed to describe a commercial purchaser’s policy. Obtain the exact Ontario form for the insured owner or lender, property use and transaction, including its insured interest, exceptions, effective date and limit.[3][4]

FCT vs TitlePLUS vs Stewart

The documented differences concern purchase route, stated eligibility and publicly disclosed features.[2][4][6]

FCT

• Purchase route: FCT provides an online residential quote calculator. The source does not confirm that every consumer can complete a purchase directly online.[2]
• Stated eligibility: FCT offers title insurance for property owners, legal professionals and lenders. Its detailed Ontario property, transaction and underwriting criteria are not supplied.[2]
• Disclosed features: FCT describes protection against risks such as title fraud and offers coverage options for different customer roles. Exact policy forms, limits and exclusions are not supplied.[2]

TitlePLUS

• Purchase route: TitlePLUS directs its ordering information to lawyers and clerks. It reports streamlined online applications and one-step policy issuance.[4]
• Stated eligibility: Residential policies are available when both the purchase price and mortgage amount are no more than $5 million. Commercial policies are available in Ontario under the same stated thresholds.[4]
• Disclosed features: TitlePLUS advertises easier or faster underwriting and automatic legal-service coverage for most policies. These are provider-reported features.[4]

Stewart

• Purchase route: Stewart says its Existing Homeowner Policy is purchased through a lawyer or notary. It also offers online quote, ordering and claim-submission functions.[6]
• Stated eligibility: The Existing Homeowner Policy is intended for homeowners who did not obtain an owner’s policy when they purchased their property.[6]
• Disclosed features: Stewart presents the policy as protection against title fraud. The source does not establish its full Ontario coverage scope.[6]

The sources do not provide comparable Ontario premiums, exact policy limits, deductibles, exclusions, optional-coverage fees, cancellation or refund rights, or independent performance evidence for these providers.[2][3][4][5][6][7][8] Without comparable quotes and complete contracts, none can fairly be ranked as the cheapest, broadest or best.

How to choose and verify a policy

First confirm whether separate owner and lender policies are being issued. A lender’s policy does not protect the homeowner’s separate ownership interest, even when the homeowner pays its premium.[3][7]

1. Verify the owner-policy details. For a purchase, confirm that the insured amount reflects the property’s full value, the effective date matches the closing date and the property description includes everything being purchased.[3]
2. Review risks and exclusions. Pay particular attention to any lien, encroachment, survey issue or other defect disclosed before closing because known defects may be excluded.[3]
3. Compare identical terms. For each provider, obtain the premium, coverage maximum, deductible, optional coverage, claim deadline, and cancellation and refund terms in writing. Comparable provider-specific terms are not available in the reviewed sources.[2][3][4][5][6][7][8]
4. Separate price from protection. Ontario residential premiums are generally one-time charges that vary by property value and insurer, but the sources do not establish comparable owner-only or lender-only prices for FCT, TitlePLUS and Stewart.[3]
5. Recheck lender coverage when refinancing. A new lender may require renewed lender coverage. Owner coverage should be considered separately.[7][8]

Coverage may also be available after a home purchase, although an existing-homeowner policy can differ from one issued for a new purchase.[3] Compare providers only after confirming whose interest is insured and how the written policy treats any known defect.

References

2. Title Insurance, Real Estate and Recovery Solutions | FCT (fct.ca)
3. Understanding Title insurance | Financial Services Regulatory Authority of Ontario (fsrao.ca)
4. TitlePLUS – Canadian title insurance provider (titleplus.ca, 2026)
5. Title Insurance General Information – B.C. Real Estate Lawyers (bcrealestatelawyers.com)
6. Stewart Title Canada | Home (stewart.ca)
7. What is title insurance and why does it matter when buying a home? | Posts (scotiabank.com)
8. Title Insurance in Canada: Costs, Coverage & Guide | WOWA.ca (wowa.ca, 2026)