What Happens on Closing Day When You Buy a Home in Ontario

Closing day is the final step in buying a home. It is the day title transfers, money moves and you get the keys. But most first-time buyers have no idea what actually happens between 9 AM and 6 PM on the day itself. This guide walks you through every step: what your lawyer does, when the mortgage funds, how adjustments work, what you need to bring, what can go wrong and when you actually walk through the front door of your new home.

Table of Contents

• What Happens Before Closing Day
• The Signing Appointment With Your Lawyer
• The Morning of Closing Day
• How the Money Moves
• Understanding Closing Adjustments
• Title Registration and What It Means
• When You Actually Get the Keys
• What Can Go Wrong on Closing Day
• Your Closing Day Checklist
• Closing Costs Breakdown
• Frequently Asked Questions

What Happens Before Closing Day

Closing day does not begin on closing day. The weeks leading up to it involve a series of steps that must be completed in sequence for the transaction to close on time.

Your mortgage lender issues final approval and sends mortgage instructions to your lawyer. This typically happens 5 to 10 business days before closing. Your lawyer reviews the instructions, confirms the mortgage amount, interest rate, term and any conditions the lender requires (such as title insurance or proof of home insurance).

Your lawyer conducts a title search on the property through the Ontario Land Registry (Teraview). This search confirms the legal owner, any liens, encumbrances, easements or outstanding municipal work orders. If a title issue is discovered (an unresolved lien, a boundary encroachment, an unpaid tax bill), your lawyer addresses it with the seller's lawyer before closing.

You arrange home insurance. Your lender requires proof of insurance before releasing mortgage funds. The insurance must be in effect on the closing date. Most buyers arrange this 2 to 4 weeks before closing with the policy start date matching the closing date.

Your agent arranges a final walkthrough of the property, typically within 24 hours of closing. This confirms the home is in the same condition as when you agreed to purchase, that any agreed repairs have been completed and that all included chattels (appliances, fixtures, window coverings) are present. If something is wrong, your agent notifies the lawyers before closing.

The Signing Appointment With Your Lawyer

You will visit your lawyer's office 1 to 5 days before closing to sign documents and provide funds. This appointment typically takes 30 to 60 minutes.

The documents you will sign include the Transfer/Deed of Land (the document that transfers ownership from the seller to you), the Charge/Mortgage (the document registering your lender's mortgage against the title), the Statement of Adjustments (the financial summary of the transaction), a Direction Regarding Funds (instructions to your lawyer on how to distribute funds) and various lender-required documents and declarations.

Your lawyer will explain each document. This is the time to ask questions. Once signed, your lawyer holds the documents in escrow until closing day when they are submitted electronically through Teraview for registration.

Funds You Need to Provide

At the signing appointment, you must provide the balance of your down payment and closing costs by certified cheque or bank draft payable to your lawyer's trust account. Personal cheques are not accepted. Wire transfers may be accepted by some law firms with advance arrangement. Your lawyer will provide the exact amount several days before the appointment so you can arrange the bank draft. This amount includes your down payment minus any deposits already paid, land transfer tax (Ontario and, for Toronto properties, municipal), legal fees and disbursements, title insurance premium and any adjustments owed to the seller.

The Morning of Closing Day

On the morning of closing day, your lawyer and the seller's lawyer begin executing the transaction. Here is what happens behind the scenes.

Your lawyer confirms that all documents are signed, all funds are in trust and the mortgage instructions have been received. Your lawyer contacts the seller's lawyer to confirm both sides are ready to close. Your lender releases the mortgage funds to your lawyer's trust account. In Ontario, mortgage funds are typically wired electronically on closing morning. Some lenders release funds the day before. If the funds are delayed, closing is delayed.

Once your lawyer has confirmed that the mortgage funds have arrived, the next step is registering the transaction.

How the Money Moves

The financial flow of a closing transaction follows a specific sequence. Your down payment (provided at the signing appointment) sits in your lawyer's trust account. Your mortgage funds arrive from the lender on closing morning. Your lawyer combines these amounts and prepares a trust cheque or wire transfer to the seller's lawyer for the full purchase price (minus the deposits already held in trust by the listing brokerage).

Your lawyer also pays the land transfer tax to the province (and municipality if applicable), the real estate commission from the seller's proceeds, any outstanding property taxes or utility adjustments, title insurance and legal fees and disbursements from the funds in trust.

On a $1,200,000 detached home purchase in Richmond Hill with a $240,000 down payment and a $960,000 mortgage, the approximate flow looks like this: down payment of $240,000 plus mortgage funds of $960,000 minus deposits already paid (typically $60,000 to $100,000) minus Ontario land transfer tax of approximately $16,475 (first-time buyers receive a rebate of up to $4,000) minus legal fees and disbursements of approximately $1,500 to $2,500 minus title insurance of approximately $300 to $500 minus adjustments (property tax, utilities) of variable amounts. The remainder flows to the seller's lawyer as the purchase price.

Understanding Closing Adjustments

The Statement of Adjustments is one of the most confusing documents for first-time buyers. It reconciles what each party owes based on expenses that have been prepaid or are owing as of the closing date.

Property taxes. If the seller has prepaid property taxes beyond the closing date, the buyer reimburses the seller for the prepaid portion. If taxes are in arrears, the seller credits the buyer. For example, if closing is June 15 and the seller prepaid the full year's property tax of $7,200, the buyer reimburses the seller for the remaining 199 days ($3,926.30).

Utilities. Water and hydro meters are read on or near the closing date. The seller pays up to the closing date. The buyer is responsible from the closing date forward. In York Region, water accounts are typically transferred by contacting the municipality (Richmond Hill or Markham). Hydro is transferred by contacting Alectra Utilities. Gas is transferred by contacting Enbridge.

Fuel oil. If the home uses oil heating (uncommon in newer York Region homes but present in some older Richmond Hill properties), the seller may have a partially full oil tank. The buyer reimburses the seller for the remaining oil at current market rates.

Rental items. If the home has a rented hot water tank, furnace or water softener, the rental contract transfers to the buyer. The Statement of Adjustments notes the monthly rental amount and the buyer assumes the contract from the closing date.

Title Registration and What It Means

Title registration is the legal act that makes you the owner of the property. In Ontario, real estate title is registered electronically through the Teraview system operated by the Ontario Land Registry.

Your lawyer submits the Transfer/Deed and the Charge/Mortgage electronically through Teraview. The seller's lawyer simultaneously submits their documents. Once both sides have submitted and the system confirms that funds have been exchanged, the Land Registry processes the registration. When registration is complete, the title officially transfers from the seller to you. Your name appears on the title as the registered owner. Your lender's mortgage is registered as a charge against the property.

Registration typically occurs between 12 PM and 4 PM on closing day. Delays in mortgage funding, document issues or system backlogs can push registration later. On particularly busy closing days (month-end and quarter-end dates are the busiest), the system can experience delays that push registrations into late afternoon.

When You Actually Get the Keys

This is the question every buyer asks first. The honest answer: usually between 4 PM and 6 PM, but it can be later.

Keys are released after title registration is confirmed by the Land Registry. Your lawyer receives electronic confirmation that the title has transferred. Your lawyer then authorizes the release of keys. In most transactions, the seller's agent holds the keys and releases them to the buyer's agent upon confirmation from the lawyers. Your agent then delivers the keys to you or arranges a meeting point.

Do not book your moving truck for 9 AM on closing day. You will not have access to the home until late afternoon at the earliest. Many buyers book movers for the day after closing to avoid the stress of coordinating a move with an uncertain key release time. If you must move on closing day, schedule the movers for late afternoon and have a backup plan in case keys are delayed.

What Can Go Wrong on Closing Day

Delayed Mortgage Funding

The most common cause of closing delays. If your lender does not release mortgage funds on time, your lawyer cannot complete the transaction. This can happen if the lender requires a last-minute document (updated employment letter, proof of insurance, source of down payment verification), if the lender's internal processing is delayed or if funds are sent to the wrong trust account. Prevention: confirm with your mortgage broker 48 hours before closing that all lender conditions are satisfied and funds are scheduled for release on closing morning.

Title Issues Discovered Late

Occasionally, a title search reveals an issue that was not identified earlier: an unregistered easement, a lien from a previous owner, a boundary discrepancy or an outstanding municipal work order. Title insurance (which your lender requires) protects against many of these risks, but resolving the issue can still delay closing. Your lawyer will advise on whether the issue can be resolved quickly or requires an extension.

Seller Does Not Vacate on Time

The seller is legally required to vacate the property by the closing date. Occasionally, sellers are not fully moved out when the buyer receives keys. If this happens, your lawyer and agent should be notified immediately. In most cases, the seller vacates within hours. In rare cases, holdback arrangements or legal action may be needed.

Walkthrough Issues

If the final walkthrough reveals damage, missing chattels or conditions not met, your agent notifies the lawyers before closing. Common resolutions include a holdback of funds (a portion of the seller's proceeds is held in trust until the issue is resolved), a credit to the buyer on the Statement of Adjustments or, in extreme cases, a delayed closing until the issue is addressed. Minor issues (a small amount of personal property left behind, a scuff on the wall from moving) are typically not grounds for delaying closing.

Teraview System Delays

The Ontario Land Registry's Teraview system processes all real estate registrations. On busy days (the last business day of the month is the most popular closing date in Ontario), the system can slow down, pushing registrations into the evening. There is nothing your lawyer can do to speed this up. It is a system capacity issue. Choosing a mid-month closing date (the 15th, for example) often results in faster registration because the system is less congested.

Your Closing Day Checklist

Closing Costs Breakdown

First-time buyers are often surprised by how much cash is needed beyond the down payment. Here is what closing costs look like on a typical York Region purchase.

Budget 1.5 to 3% of the purchase price for closing costs on top of your down payment. On a $1.2M home, that means $18,000 to $36,000 in cash beyond your 20% down payment. Your lawyer will provide the exact figure at the signing appointment, but having this range in mind early prevents last-minute financial scrambling.

Note: This guide describes the general closing process for residential real estate purchases in Ontario as of 2026. Specific timelines, costs and procedures may vary by transaction, municipality, lender and lawyer. Land transfer tax rates and rebate amounts are subject to change. For legal advice specific to your closing, consult your real estate lawyer. For mortgage-specific questions, consult your mortgage broker or lender.