Buying a House: What Happens Before and On Closing Day

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If you’ve recently purchased a house for the first time you may be curious about what happens on closing day (also commonly referred to as completion day or the day the ownership is transferred). It’s an exciting time for you but also likely a bit stressful and confusing.

In this blog, we’re going to guide you through everything you need to know about closing day and how to successfully navigate it.

Talk to Your Bank Well Before Closing Day

If you’re using any savings, RRSPs, or other funds to purchase your home, speak with your bank beforehand to get this sorted out so you’ll have the funds ready in time for closing day.

Review Any Contracts

Whether you took your time or put in an offer in a hurry, it’s important to take your time reviewing any contracts you received about the payments required, home inspection results, and what the sale includes. If the sellers are taking any major appliances, fixtures, or window coverings with them or you know you’re on the hook for repairs or changes, you should make plans well in advance for replacements.

Complete Another Walkthrough

We know you already looked at the house before you made your offer, but it should be in your purchase agreement that you can do another walkthrough before the closing day. If you'd made any conditions about repairs being completed, this is your time to ensure it's done. Also check that there's no damage you didn’t notice on your first walkthrough before you sign off the final paperwork.

Ensure the Appraisal Has Been Satisfied

Your mortgage broker should have explained the lender’s requirement for an appraisal to you when you were approved for your mortgage. Typically, appraisals need to be completed within the 7-day subject removal period after an offer has been accepted on a home. This is to satisfy the bank that the home is worth what you're paying for it. If the appraisal comes up low, you may need to make arrangements to come up with or justify the difference.

Arrange for Home Insurance

To protect against any issues that come up, you don’t want to leave your home unprotected! Talk to your home insurance agent to find out what’s needed to place insurance on your new property and when is the best date to start. Your mortgage broker may also require that you have home insurance set up before the mortgage financing is completed.

Plan Your Move-In Day

Although you can talk to your REALTOR® and/or lawyer to discuss other arrangements with the seller, typically your move-in (possession) date will be a few days after the closing day. This is the day you get the keys to your new home and can move in.


Any Remaining Payments Must Be Made and Signed Off

As the buyer, you’ll need to meet with your lawyer or notary a day or two before the closing date to take care of the paperwork that lays out the full purchase price — divided into the down payment and mortgage loan — and other fees such as legal fees and closing costs. If any outstanding funds from the down payment or the closing costs remain you must provide payment at this time.

Your Purchase Will Be Registered

Once all funds have been handed over and paperwork signed, your lawyer or notary will then register this purchase with the Land Title Office. The property title and ownership get transferred from the seller to your name — this means you are now the official owner of the property!


Have more questions about closing day? We're experts at the Garman GroupGet in touch with us today!