Costs and closing
Title insurance
A one-time policy that protects you and your lender against title defects, survey problems and some kinds of fraud.
Title insurance covers problems with the legal ownership of the property: an undisclosed lien, an encroachment a survey would have caught, an unpermitted structure, a municipal work order, or title fraud after you own the home.
In Alberta it has largely replaced the Real Property Report with compliance as the standard approach, because it's cheaper and faster, and most lenders now require it. It's a one-time premium, commonly $250 to $400, paid at closing.
There are 2 policies. The lender's policy protects the lender's security and is the one that's required. An owner's policy protects your equity and usually adds a small amount to the same transaction. Buying it at the same time costs far less than arranging it later.
Title insurance is different from home insurance. Property insurance covers the building, and title insurance covers your right to own it.
Related terms
Closing costs
The cash you need on possession day on top of the down payment, including legal fees, registration fees, adjustments, insurance and inspections.
Appraisal
A lender-ordered opinion of a property's market value, used to confirm the loan-to-value ratio before funding.
Possession date
The day the property legally becomes yours and the mortgage funds, usually at noon on the agreed date in Alberta.
This definition describes how the term is used in Canadian residential mortgage lending. It’s general information, not advice on your file. Rules, thresholds and rates change. Where a figure is quoted, it’s current as of the date shown on the related guide.
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