What Is a NOSI on Your Property Title? Ontario Banned Them in 2024 — Check Before You Buy or Sell
Rental companies for water heaters, A/C and furnaces used to register a NOSI on your title. As of June 6, 2024, those consumer NOSIs are wiped out by Ontario law
Is a NOSI on title a mortgage, and does it still have legal effect?
A NOSI (Notice of Security Interest) isn’t a mortgage — it’s a registration an equipment company puts on your title to flag a security interest in a financed/rented item. The key change: According to the Government of Ontario (2024), the Homeowner Protection Act, 2024 came into force on June 6, 2024, banning the registration of NOSIs on residential consumer goods (explicitly including water heaters, air conditioning equipment and furnaces) and deeming all consumer NOSIs already registered on title to be expired. So even if one still shows on your title record, it no longer affects the land.
Sources: Government of Ontario, "Notices of Security Interest" and the Homeowner Protection Act, 2024 (in force June 6, 2024); ontario.ca news release (reviewed June 2026).
When I run a title search for buyers and sellers, I regularly find a NOSI or two sitting on the property — and most owners have no idea it’s there. It used to be a headache: some equipment companies charged steep “discharge fees” or used it to discourage switching suppliers. The good news is Ontario legislated these consumer NOSIs out of existence in 2024. Here’s what a NOSI is, how the new law protects you, and what to check before you buy, sell or refinance.
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First, what a NOSI actually is — not a mortgage
The core of the new law: consumer NOSIs are abolished
ℹ️Still visible on title ≠ still valid. After June 6, 2024, consumer NOSIs are deemed expired by law. Even if you can still see one, it doesn’t affect your ownership — you only need a lawyer to discharge it if you want a spotless record.
What you have to do: usually nothing
⚠️An expired NOSI doesn’t mean the equipment is free. The rental/financing contract still stands — your monthly payments and buyout obligations continue. On a sale, always state in the offer how rented equipment (e.g., the water heater) will be handled.
Key distinction: the title registration is gone, your contract isn’t
Before buying, selling or refinancing: spend ten minutes on title
Frequently Asked Questions
How is a NOSI different from a mortgage?
A mortgage is a loan registered against your whole house; a NOSI is a security notice tied to a single piece of equipment, for a far smaller amount. The new law only abolishes consumer NOSIs — mortgages are unaffected.
I have a NOSI registered before 2024 — is it still valid?
No. According to the Government of Ontario (2024), the Homeowner Protection Act, 2024 deems all registered consumer NOSIs expired regardless of when they were registered. Commercial NOSIs are not included.
Do I have to remove a NOSI from title before selling?
Not required. It’s already legally expired and doesn’t affect ownership. But many owners have a lawyer discharge it anyway to avoid questions from the buyer or lender — a nice-to-have, not a must.
If the NOSI is gone, do I still pay for the water heater?
Yes. The law removes the title registration, not the rental/financing contract. Payments and buyout continue, and the sale handles the equipment per the offer terms.
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