Skip to main content

What to Expect on Closing Day When Buying a Home in Canada

Updated

Closing day is when the home officially becomes yours. After weeks or months of searching, negotiating, and paperwork, the final step is the legal and financial transfer of ownership. Here is exactly what happens and how to make sure everything goes smoothly.

The week before closing

Most of the critical work happens before closing day, not on the day itself.

Task When Who Handles It Your Action
Sign mortgage documents 5–10 days before closing Your lawyer sends them for review and signature Review carefully, sign where indicated
Sign closing documents with your lawyer 2–5 days before closing Your lawyer’s office In-person or virtual appointment (30–60 minutes)
Provide closing funds 2–3 days before closing You wire or bring certified cheque to lawyer Your lawyer tells you the exact amount on the statement of adjustments
Confirm home insurance 1–2 weeks before closing You arrange, provide proof to lawyer Insurance binder sent to lawyer by your insurer
Set up utilities 1 week before closing You call/set up online Hydro, gas, water, internet — set start date for closing day
Arrange movers 1–2 weeks before closing You Book for late afternoon or the day after closing to be safe

The statement of adjustments

Your lawyer prepares a statement of adjustments a few days before closing. This is the final accounting of what you owe.

Line Item Typical Amount Debit (You Pay) or Credit (You Receive)
Purchase price $500,000 Debit
Deposit (already paid, held in trust) $25,000 Credit
Mortgage proceeds (from lender) $475,000 Credit
Land transfer tax (Ontario example) $6,475 Debit
First-time buyer LTT rebate ($4,000) Credit
Legal fees + disbursements $2,200 Debit
Title insurance $450 Debit
Property tax adjustment (seller prepaid 6 months) $2,500 Debit
PST on CMHC premium (Ontario) $1,520 Debit
Net amount due from you ~$8,645 Certified cheque or wire

The key number is the net amount due — this is what you bring to your lawyer. It accounts for your deposit already in trust, the mortgage funds coming from the lender, and all closing costs and adjustments.

Closing day: Hour by hour

Time What Happens Who Does It
Morning (8–10 AM) Your lawyer submits documents to the land registry for registration Your lawyer
Late morning (10 AM–12 PM) Land registry processes the deed transfer and mortgage registration Government
Midday (12–2 PM) Once registered, your lawyer requests the mortgage funds from the lender Your lawyer → lender
Early afternoon (1–3 PM) Lender wires mortgage funds to your lawyer’s trust account Lender
Mid-afternoon (2–4 PM) Your lawyer sends the full purchase price to the seller’s lawyer Your lawyer → seller’s lawyer
Late afternoon (3–5 PM) Seller’s lawyer confirms receipt and authorizes key release Seller’s lawyer → listing agent
Keys released (3–5 PM) Your real estate agent picks up keys from the listing office or lockbox Your agent → you

Month-end closings are busier. Land registry offices process more transactions on the last business day of the month, which can delay registration and funding by hours. If possible, choose a closing date mid-month or mid-week to reduce the chance of delays.

The final walkthrough

You have the right to do a final walkthrough of the property before closing. This is typically done 24–48 hours before closing.

What to Check Why
All included appliances are present and working Confirms nothing was removed after your offer
No new damage since your last visit Seller is responsible for the property until closing
Agreed-upon repairs were completed (if negotiated) Verify work was done as promised
All fixtures included in the offer are present Light fixtures, window coverings, shelving, etc.
Utilities are functioning (turn on taps, flush toilets, check electrical) Ensures nothing has been disconnected or damaged
Property is in broom-clean condition Standard expectation — not deep cleaned, but cleared out
Garage door openers, keys, alarm codes are available You will need these on possession day

If you find a problem during the walkthrough:

  • Minor issues: Document them and notify your lawyer. The closing proceeds but you may negotiate a small holdback.
  • Major issues (appliances removed, new damage, unauthorized changes): Contact your lawyer immediately. They can delay the closing or negotiate a larger holdback in trust until resolved.

Documents you sign before closing

Document Purpose When You Sign
Mortgage commitment Your agreement with the lender — rate, term, conditions 5–10 days before closing
Transfer/deed of land Transfers ownership from seller to you At lawyer’s office, 2–5 days before closing
Mortgage charge Registers the lender’s security interest on the property At lawyer’s office
Statement of adjustments Final financial accounting Reviewed and approved 2–5 days before closing
Statutory declaration Confirms identity, citizenship/residency, intended use At lawyer’s office
Direction regarding funds Instructs your lawyer how to handle the money At lawyer’s office
Undertaking to lender Your lawyer promises to register the mortgage and provide documents to the lender Your lawyer handles this

Common closing day delays and how to handle them

Delay Cause What Happens How to Prepare
Land registry backlog Month-end volume, system issues Registration delayed hours Choose mid-month closing if possible
Lender funding delay Missing documents, underwriting backlog Funds arrive late afternoon instead of midday Have all documents submitted 5+ days before closing
Title issue discovered Lien, encroachment, boundary problem Closing may be postponed Your lawyer does a title search well before closing — issues usually surface early
Chain closing (seller is also buying) Seller’s purchase falls through or is delayed Your closing depends on their closing Ask about the seller’s situation before choosing a short closing date
Insurance confirmation not received Insurer did not send binder to lawyer Lender will not fund without proof of insurance Arrange insurance 2+ weeks early, confirm your lawyer has the binder
Funds not received Buyer’s certified cheque or wire not processed in time Closing cannot proceed Send funds 2–3 business days before closing

What to do on closing day itself

Since you signed everything days earlier, closing day is mostly about waiting:

Time Your Activity
Morning Go about your day. Your lawyer is handling the legal work.
Midday Check in with your lawyer or agent for a status update.
2–4 PM Expect a call from your agent saying keys are ready for pickup.
Late afternoon Pick up keys. Walk into your new home.
Evening Change the locks (recommended security step).

After closing: First week checklist

Task When Details
Change locks Day 1 You do not know who has copies of the previous owner’s keys
Set up mail forwarding Day 1 Canada Post mail forwarding ($71.50 for 4 months)
Register for property tax Week 1 Contact your municipality to update ownership records
Update address everywhere Week 1 Driver’s licence, bank, CRA, employer, insurance, subscriptions
Test smoke and CO detectors Day 1 Replace batteries, verify placement meets code
Locate water shut-off and electrical panel Day 1 Know where these are before an emergency
Review your mortgage payment schedule Week 1 Confirm first payment date, amount, and payment method
Start a home maintenance file Week 1 Store appliance manuals, warranties, contractor contacts, paint colours

Closing costs you pay at or before closing

Cost Typical Amount Paid To
Net closing funds (per statement of adjustments) $5,000–$25,000+ Your lawyer (trust)
Land transfer tax $0–$30,000+ Provincial/municipal government (via lawyer)
Legal fees $1,500–$3,000 Your lawyer
Title insurance $300–$500 Title insurer (via lawyer)
Property tax adjustment $0–$3,000 Seller (via lawyer)
PST on CMHC premium (ON, QC, SK, MB) $0–$2,500 Provincial government (via lawyer)

Everything is handled through your lawyer’s trust account. You provide one payment — the net amount due — and your lawyer allocates it to all the correct parties.

🏠

Get the best mortgage rate in Canada — in minutes

Homewise negotiates with 30+ banks and lenders for you. Free, 5 minutes, no credit check.

Get Started →

Affiliate disclosure: WealthNorth may earn a commission if you apply through this link. This does not affect your rate or cost.