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.