So your offer got accepted — congratulations. But before you pop the champagne and start picking out throw pillows, there's one more hurdle: closing day. It's the moment when the property officially becomes yours, and it comes with its own set of steps, costs, and potential surprises. The good news? Most closings go smoothly, and knowing what to expect makes the whole process a lot less stressful.
This guide walks you through everything that happens between your accepted offer and the moment you get the keys — including how long it takes, what it costs, what your lawyer does behind the scenes, and how to handle problems if they come up.
What is closing day
Closing day is the final step of the home-buying process — the day the property officially changes hands from the seller to you. Your lawyer or notary registers the home in your name, the seller receives their money, and you get the keys.
Everything from your mortgage approval to the title search to the final paperwork has been building toward this moment. You won't necessarily be in the room when it happens — in many cases, the lawyers handle the exchange on your behalf.
How long does closing take?
In Canada, the closing period typically runs 30 to 90 days after the buyer and seller sign the Agreement of Purchase and Sale (APS). The exact timeline depends on what the buyer and seller agree to in the contract, and whether any conditions need to be met first.
Most of that time is a waiting period. As Khalil Ebrahim, a veteran real estate agent and principal broker, puts it: "Nothing really happens for 80 of those days." You'll use those weeks to finalize your mortgage, arrange for a home inspection (if you haven't completed one yet), set up home insurance, and plan your move.
The real action starts about 10 days before closing, when you visit your lawyer to sign documents and provide funds. If both parties agree, they can sometimes extend the closing date — but it requires mutual consent and, in some cases, a formal amendment to the APS.
How to prepare before closing day
The weeks before closing are when most of the work happens behind the scenes. Here's what you should have in order:
Finalize your mortgage. Confirm your approval and lock in your rate. Make sure your lender has everything they need — lender delays are one of the most common things that push a closing back. If you haven't already, take time to understand the difference between fixed- and variable-rate mortgages before committing.
Hire a real estate lawyer or notary. Your lawyer handles the title search, prepares documents, and manages the transfer of funds on closing day. In Quebec, a notary performs this role. Your real estate agent can often recommend a trusted lawyer.
Arrange title insurance. This protects you against problems with the property's title that might surface after the sale — things like unknown liens, survey errors, or fraud.
Set up home insurance. Your lender will typically require proof of home insurance before they release mortgage funds.
Prepare your down payment. Make sure your funds are liquid and accessible. If your down payment is tied up in investments, start the process of cashing out early — it can take longer than you'd expect.
Schedule a final walkthrough. Most buyers do a walkthrough 24 hours before closing to confirm the property is in the agreed-upon condition.
Closing costs: what you'll pay
Closing costs are the fees and taxes you pay on top of the purchase price. In Canada, expect closing costs to run between 1.5% and 4% of the purchase price — so on a $500,000 home, that's roughly $7,500 to $20,000.
Here's what's typically included:
Land transfer tax
This is usually the biggest closing cost, and the bill can run well into five figures depending on the value of your home. The amount varies by province — Ontario, British Columbia, and Quebec all charge land transfer tax (LTT), while Alberta and Saskatchewan do not. Some municipalities, like Toronto, add their own LTT on top of the provincial one. First-time buyers in Ontario may qualify for a rebate of up to $4,000. (Here's a land transfer tax calculator to help estimate your costs.)
Legal fees
Expect to pay $1,000 to $2,500 for your lawyer or notary, plus disbursements — the smaller costs they incur on your behalf, like courier fees and registration charges.
Title insurance
A one-time premium, typically $300 to $500, that protects you and your lender against title defects.
Other adjustments and fees
Your lawyer will prepare a statement of adjustments that accounts for property taxes, utility bills, and condo fees the seller may have prepaid. You'll reimburse the seller for any prepaid amounts that cover the period after you take ownership.
What your lawyer does during closing
Your lawyer plays a central role in the closing process — arguably more important than your real estate agent at this stage. Once the deal is firm, the real estate agents step out and the work shifts to the lawyers. Here's what they handle:
Title search. They verify that the seller owns the property and that there are no liens, claims, or encumbrances on the title.
Document preparation. They prepare or review the transfer documents, mortgage documents, and the statement of adjustments.
Fund management. They collect your down payment and closing costs, receive the mortgage funds from your lender, and send the total purchase price to the seller's lawyer.
Registration. On closing day, they register the property transfer and the mortgage with the land registry office.
Key release. Once your lawyer registers the transfer and confirms the funds, the seller's lawyer releases the keys to you — often through your real estate agent.
What happens on closing day
If everything is in order, the actual closing should take a day. About 10 days beforehand, you'll have visited your lawyer to sign your mortgage documents and fill out forms confirming your capacity to pay the agreed-upon sale price. You'll have written a cheque for the land transfer tax, and your lawyer will have released your security deposit to the seller's lawyer.
On closing day itself, the lawyers get together and exchange documents. In many cases, neither you nor the seller will be in the room. "More often than not," Ebrahim says, "you'll never know what each other looks like."
Once all the paperwork is complete and your lawyer has sent the funds, the seller's lawyer hands over the keys, and that's that. The home is officially yours.
What can go wrong — and how to handle it
In most cases, the closing process is fairly straightforward, but hitches do happen. Here are some of the most common issues:
Mortgage financing delays. Your lender might need additional documentation, or your approval could fall through if your financial situation has changed since you applied. If your financing falls through or stalls, you may need short-term bridge financing to keep the deal together until you secure your loan. Understanding how much mortgage you can afford early in the process helps reduce the risk of surprises.
Down payment complications. If investments are holding your savings, cashing them in can take longer than expected. Start early and keep your funds liquid well before closing day.
Property issues discovered during the walkthrough. A leak, damage to the floor, a door that won't close — if you spot problems during your final walkthrough, your agents may need to negotiate a repair credit or price adjustment to keep the deal moving.
Title problems. Occasionally, the title search reveals an unknown lien, an unregistered easement, or a discrepancy in the property boundaries. Title insurance can help protect you, but resolving the issue may delay closing.
Missing or incomplete documents. If anyone involved — you, the seller, the lender, or either lawyer — is slow to provide the required paperwork, the whole timeline can slip.
With enough time and communication, you can resolve most of these problems, which is one more reason to avoid closing on a Friday.
Tips for a smooth closing day
A few practical steps can help you avoid last-minute stress:
Don't close on a Friday. If something goes wrong on a Friday closing, you're stuck waiting through the entire weekend before anyone can fix it on Monday.
Keep your funds accessible. Make sure your down payment and closing costs are in a chequing or savings account — not locked in investments or Guaranteed Investment Certificates (GICs) that take time to redeem.
Stay in touch with your lawyer. Check in 1 or 2 weeks before closing to make sure everything is on track. Don't assume no news is good news.
Don't make major financial changes. Avoid switching jobs, taking on new debt, or making large purchases before closing — any of these can affect your mortgage approval.
Do your final walkthrough. Walk through the property 24 hours before closing to check for any damage or issues that weren't there when you made your offer.
