Buyers picture closing day as a meeting with a pen. It is mostly two lawyers, a wire transfer and an electronic registration system, and you are not in the room for any of it. Knowing the sequence is what stops the day from feeling like something has gone wrong.
The week before
You sign documents at your lawyer's office, usually a few days ahead. Your lender sends mortgage instructions to your lawyer. You arrange home insurance effective the closing date, because your lender will not advance funds without proof of it. And you do a final walkthrough to confirm the home is in the condition you agreed to buy it in, with the included appliances still there.
The morning of
Your lawyer confirms the lender has advanced the mortgage funds and that your closing balance has cleared. That balance is the purchase price minus your deposit and mortgage, plus land transfer tax, legal fees, title insurance and adjustments for anything the seller prepaid, such as property taxes. It is sent by certified funds or wire, not by regular cheque, usually a day or two in advance.
The registration
The two lawyers exchange documents electronically and register the transfer and your mortgage in Ontario's land registration system. Money moves to the seller's lawyer. Once registration is confirmed, the seller's lawyer authorizes the release of keys, typically left with the listing brokerage. The system has busy periods and a heavy Friday can slow everything down.
What can push the day sideways
A wire that arrives late. A lender that issues instructions at the last minute. A seller who has not finished moving out. A walkthrough that finds damage or missing appliances, which is normally handled by holding back funds rather than cancelling. None of these are common, and all of them are easier if your closing is not on the last Friday of the month, which is the busiest closing day there is.
Frequently asked questions
Can I move in the morning of closing?
Not safely. You do not own the home until registration completes and funds are released, and the seller has until then to be out. Book movers for the afternoon, or take possession one day and move the next if the dates allow it.
What are adjustments on a statement of adjustments?
They balance out anything the seller has already paid past the closing date, most often property taxes and sometimes utilities or condo fees. If the seller prepaid taxes for the year, you reimburse them for the portion covering your ownership, and it appears as a credit to the seller on the statement.
Do I need a lawyer to buy a house in Ontario?
Yes. Only a lawyer can register the transfer and the mortgage, and only a lawyer can give you the title advice the transaction needs. Get one engaged early rather than a week before closing, and ask for their fee plus disbursements in writing so it goes into your closing cost budget accurately.
