The Closing Process


Finally, after all the stress and anxiety that undoubtedly comes with buying a new home, your reward is just beyond the day of closing. On this day you get the keys to your new home and you can commence the moving process. Few experiences compare with the excitement of walking through the door of your new property. To make the closing day proceed as smoothly as possible pay attention to the reminders listed below. Once they are out of the way, you may start enjoying the peace of mind that comes with officially and legally owning your new home.


The “LAST” to-do list:

Here’s what to expect on closing day


  1. Your mortgage lender will provide the mortgage money to your lawyer (or notary, in Quebec).
  2. You must provide the balance of the purchase price (this is the purchase price minus your initial deposit) to your lawyer.
  3. You will be responsible for paying legal fees, disbursements and land transfer taxes (Closing Costs).
    4. Your lawyer pays the vendor, transfers the title to your name, registers the mortgage, and provides you with the keys to your new home.

What happens during the closing process?

When going to your lawyer’s office to sign the paperwork for your new property, you will be required to bring the certified funds, and the account information from which your mortgage payments will come out of (Try to get your bank to provide the lawyer with this information prior to the closing appointment to save some time). Along with this financial information you will be required to bring 2 pieces of identification, at least one must be a photo ID (Social Insurance Number and Driver’s License should suffice). You should check with your lawyer when you book your appointment to see what other things, if any, must be brought with you. Make sure you sign all the documents required by the bank at least a week before closing. The sooner you sign these financial documents, the longer the banks have to process and deliver instructions to your lawyer. Keep the name and number of your mortgage representative with you on closing- as this person will be your best contact should any delays arise when the lawyer gets his/her mortgage instructions.


Most closings happen mid/late afternoon, depending again on when your mortgage money is received and also when your closing funds are received. The process beings on the seller’s end, as he/she signs several financial statements and a couple of disclosures at the lawyer’s office. The buyer then signs similar documents with their respective lawyer. In most cases, this process may be anti-climactic, but as anyone who has been through a difficult closing can attest to, this is the one event where “boring” is what you are hoping for. While this part of the closing process may seem rushed (which it usually is, since many lawyers close several properties on the same day), take a bit of time to clarify anything you might be unsure of and ask your questions before moving on. Although you will have little room for movement in terms of changing any of the documents, you should understand what you are signing. Reviewing important documents prior to your closing appointments can be a big help.


***Remember, should something go wrong, at this stage in the process it can easily be dealt with. Generally, these are minor glitches that the professionals involved have seen numerous times before (Correcting documents or verifying that both lawyers are on the same page etc.). Although it may take a little bit longer to clear these issues up, keep a cool head and stay calm.


If you are purchasing and selling your home on the same day, be prepared to close later in the day, as you often become part of a chain (where the person buying your home may have to sell to another and so on). Be sure to plan your moving truck/movers accordingly (for mid-late afternoon and not the morning) so that you are not paying a company by the hour to be sitting outside your house while you are waiting for the closing to take place. If you haven't already sold your home, you may want to consider selling a few days or even a week after you purchase. This is done to provide you (the buyer) time to move out of your old home and in to your new one. Most banks offer bridge financing to cover the difference in money between the two closing dates and are typically inexpensive. I highly recommend this option when you consider the stresses that accompany moving out of an old home and in to a new one on the same day.


All that remains, aside from a few more documents to sign and picking up the keys to your new home is paying your closing costs. This is the biggest aspect of the closing procedure and should not be taken lightly. Click here to see what things are involved in one's closing costs and how much you should set aside to prevent these costs from hurting your budget.


Some other things to remember before moving in:

  • Check to make sure that the seller(s) have called the utility companies to cancel their services. If they haven’t, you may have trouble getting things transferred to your name.
  • Ask the seller for their new phone number and ask if you can call them should you have any questions regarding the property. This can be very helpful if you have difficulties working something once you have moved in (appliances are usually the first thing that comes to mind).
  • Get a list of the companies you wish to use (telephone companies, cable etc.) and get quotations on how much each will charge to provide their services. Remember to ask about new homeowner specials these companies may offer. Once you are satisified with the price, book an appointment for them to come out to your new property.