Closing day is the date your home purchase becomes legally final. In Ontario, your real estate lawyer handles nearly everything on this day, from transferring funds and registering the property title to coordinating the release of keys, and most buyers receive their keys between mid and late afternoon.
Most of the work actually happens before closing day itself. A few days prior, you will meet with your lawyer to review and sign all required documents, including your mortgage paperwork and the transfer of title. Your lawyer will also present the Statement of Adjustments, which is the final accounting of what you owe. It includes the remaining balance of the purchase price, land transfer tax, legal fees, title insurance, and prorated credits or charges for things like prepaid property taxes or condo fees.
On the morning of closing day, your mortgage lender advances the loan funds to your lawyer's trust account. Your lawyer combines those funds with the money you have already provided and sends the full amount to the seller's lawyer electronically. Once the seller's lawyer confirms receipt, your lawyer registers the transfer of ownership and the mortgage through Ontario's electronic land registry system. The moment that registration is recorded, you are legally the owner. In Toronto, buyers should note that the municipal land transfer tax is collected through this same process, in addition to the provincial land transfer tax.
After registration is confirmed, the seller's lawyer authorizes the release of keys. Your agent will typically coordinate the pickup. Keys are commonly released between 2:00 p.m. and 5:00 p.m., though delays of an hour or two are not unusual and are generally procedural. For this reason, it is wise to avoid booking movers for early in the morning on your closing date.
There are a few things buyers should have arranged well before the day arrives. Home insurance must be active as of the closing date, because your lender will not advance mortgage funds without proof of coverage. Utility accounts should be set up or transferred into your name. And you should confirm that your lawyer has received mortgage instructions from your lender with enough lead time to avoid last-minute complications. To understand the full range of expenses you should budget for, see How Much Are Closing Costs When Buying a Home in Toronto?
After closing, your lawyer will send you a final reporting letter with proof of title registration, mortgage details, and copies of all signed documents for your records.
