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Title insurance protects you against title defects, hidden liens, title fraud, and survey issues — problems that can surface after you’ve already closed. Example: the previous owner had an unpaid debt registered against the property, or someone forged signatures to transfer ownership. Without title insurance, you inherit the problem. There are two types: the Owner’s Policy (roughly $200–400, one-time, lifelong coverage) and the Lender’s Policy (required by your bank). Always get both — the lender’s policy only protects the bank, not you.

A power of sale property is sold by the bank after the owner defaults on their mortgage. The key phrase to remember: “as is, where is” — no repairs, no warranties, minimal disclosure. The bank typically has no knowledge of the property’s condition and accepts zero liability. Hidden risks include second liens, unpaid property taxes, or other encumbrances attached to the title. Title insurance is especially critical here — and note that standard lender’s title insurance can sometimes be harder to obtain for these properties, requiring special arrangements.

This trips up a lot of buyers. The short answer: resale home purchase prices do NOT attract HST. However, HST does apply to: title insurance premiums, legal fees, real estate commissions, appraisal fees, home inspection fees, and survey fees. New construction is different — the purchase price includes HST, partially offset by the New Home HST Rebate. And in 2026, Ontario introduced a major policy: full 13% HST exemption for new homes and condos up to $1M, valid April 1, 2026 to March 31, 2027, with a maximum rebate of $130,000.

Before any closing, make sure you’ve confirmed: both owner’s and lender’s title insurance are in place; for power of sale properties, a home inspection has been completed even if the bank doesn’t require it; all closing cost estimates include HST where applicable; and for new construction buyers in 2026, your lawyer has confirmed eligibility for the HST exemption/rebate. These details seem minor until they aren’t — and catching them early saves real money.

Arthur’s Note

HST: What Applies in Ontario Real Estate

Resale Home Price → No HST

Legal/Insurance/Commission → HST Applies

New Home Price → HST Included (Rebate Available)

2026 Policy: Up to $130K Rebate on Homes Under $1M

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