Closing Day in the GTA | What to Expect

This article is part of our complete guide to buying a home in Ontario.

For most buyers, closing day happens quietly between lawyers and lenders. Ownership transfers once the funds reach the seller’s lawyer and the transfer is registered in Ontario’s electronic land registry, not when you sign your documents or when your lender confirms funding.

That takes time, and it rarely finishes early. We find closing day is hardest for buyers who expect their keys at 9:00 am. Our article on mortgage financing simplified for Ontario buyers explains how your financing shapes the day.

What Happens Before Closing Day

A lot happens before closing day. Your lender sends your lawyer its mortgage instructions, which set out the terms and conditions of your mortgage. Your lawyer also completes a title search to confirm there are no liens, encumbrances, or title defects on the property. Off-title searches run at the same time, checking for things like tax arrears and work orders that could otherwise become your problem after closing.

Next comes the Statement of Adjustments. In a typical resale, the seller’s lawyer prepares it and your lawyer reviews it. It shows the balance owing to the seller after your deposit, plus adjustments such as property taxes the seller has prepaid. Your lawyer then works out the total you need to close, including land transfer tax and legal fees. The reporting letter, which confirms everything was registered, comes after closing.

What you need to do before closing day

You’ll meet your lawyer to sign your mortgage and closing documents, usually about a week before closing. It can be sooner or later, depending on when your lawyer receives the lender’s instructions. That’s also when you usually bring the money you need to close, as a bank draft. We explain what that amount includes in the week-before section below.

What Happens on Closing Day in Ontario

You don’t need to go to your lawyer’s office on closing day. The steps are the same on most closings, but how long they take depends on your lender and the file.

In a typical closing, your lender releases the mortgage funds to your lawyer’s trust account, and your lawyer combines them with the rest of your down payment and sends the payment to the seller’s lawyer. The Transfer and Charge are registered electronically through Teraview, the software lawyers use to register documents in Ontario’s electronic land registry, and the seller’s lawyer then authorizes key release. The exact order can vary with the arrangements between the lawyers. Funding, registration and key release usually all happen on closing day, and the home is yours to enter once you have the keys.

Each step depends on the one before it, so if your lender is late sending the funds, everything after it is late too. If the seller’s lawyer is tied up on another file, your registration waits. Your lawyer keeps things moving for you, but no one person controls the timing.

What Time Do You Get Keys on Closing Day in the GTA?

Most of our GTA buyers get their keys in the mid to late afternoon, usually between 3:00 and 5:00 pm. Earlier key release does happen, but don’t count on it. Electronic registration generally closes at 5:00 pm on business days, which is why a late closing can roll into the next morning.

A few things affect your timing. Lenders release mortgage funds at different times of day, and some take longer than others. Lawyers’ offices are busiest at month end, so month-end closings tend to move more slowly than mid-month ones. If your seller is buying another home the same day and using your purchase funds to close on it, your timing depends on their file moving first.

Here’s what we tell our buyers: plan your move for an afternoon key release. For most moves, that means booking the movers to load at the old home in the morning, giving them a lunch break or a driving window, and unloading at the new home once your lawyer confirms registration. For a larger home or a long drive, booking the movers for the day after closing can take away the pressure of waiting for keys and help you avoid overtime charges. Don’t give your movers an arrival time at the new address until your lawyer confirms the keys are ready.

If you haven’t heard anything by mid-afternoon, call your own lawyer’s office for an update. Keep in touch with your movers and ask about any extra waiting charges. If it looks like closing may be delayed, start looking at temporary accommodation or storage before the end of the day. We’re a phone call away too, and we’ll help you sort out the next steps.

How You Get the Keys

Since COVID, the front door key is usually left in a lockbox on the front door, with the rest of the keys inside the home, often in the kitchen. We don’t usually meet buyers on closing day itself, because nobody knows exactly when the seller’s lawyer will release the keys. Instead, we meet you the day after closing, whenever it suits your schedule.

Closing Day Costs and the Statement of Adjustments

The money you bring to your lawyer covers more than the rest of the purchase price. Land transfer tax is the largest single cost for most buyers. Ontario charges provincial land transfer tax on most residential purchases, and Toronto buyers also pay a municipal land transfer tax. If you qualify as a first-time buyer, you may get a refund of up to $4,000 on the provincial tax and, in Toronto, a rebate of up to $4,475 on the municipal tax. Eligibility rules apply, and your lawyer can claim the refund for you when the transfer is registered.

Legal fees, title insurance and disbursements vary by firm and transaction, so ask your lawyer for a written quote early. Property tax adjustments can add or subtract a few hundred to a few thousand dollars depending on the closing date and whether the seller prepaid taxes. If you’re putting less than 20% down, your mortgage default insurance premium (from CMHC or another insurer) is usually added to your mortgage, but the 8% Ontario retail sales tax on that premium is paid at closing and can’t be added to the mortgage. Our article on Ontario home buyer programs covers the rebates in more detail.

The interest adjustment date

Your mortgage often has an interest adjustment date separate from your closing date. If you close on the 20th of the month but your first payment cycle starts on the first of the following month, your lender charges interest for the days in between. Lenders handle this interest in different ways, so ask your mortgage specialist or lawyer how yours does it.

What to Prepare the Week Before Closing

Your lawyer will tell you the exact amount you need to close before your signing appointment. It generally includes the rest of your down payment, after your deposit is credited, plus closing costs and any adjustments. Ask your bank for the bank draft ahead of time and bring it with you when you sign, unless your lawyer’s office asks for the funds another way. Don’t leave it to closing day, because your lawyer needs the funds in their trust account before they can close.

Arrange home insurance well in advance. Your lender usually won’t release funds without proof of coverage in place, and the binder letter needs to reach your lawyer a day or two before closing. If you’re buying a condo, confirm whether the building’s master policy covers your unit or whether you need separate contents and improvements coverage.

If your offer included a pre-closing walkthrough, schedule it for the day or two before closing. The walkthrough helps you check that the property is in the condition you agreed to, that the included fixtures and chattels are there, and that any agreed repairs are done. If the seller is still moving out, ask your lawyer to confirm the arrangements for vacant possession. Raise any concerns with your lawyer before closing day, not on it. A problem is much easier to sort out two days before closing than at 4:00 pm on the day. If you’re buying your first home, our first-time home buyer checklist is a good final check.

Common Closing Day Issues and How to Handle Them

Most GTA closings go through without a problem. When one doesn’t, it’s usually for one of these reasons: late delivery of mortgage funds from the lender, missing or incorrect documentation that lawyers catch at the last minute, unexpected Statement of Adjustments items, or sellers who haven’t fully moved out by the agreed possession time.

If there’s a delay, let your lawyer handle it, and don’t call the other lawyer’s office yourself. If the delay looks like it will push closing past the end of the business day, your lawyer will advise on next steps, which can include per diem interest charges the seller may be entitled to under the agreement of purchase and sale.

Delays are more likely when closings are linked. If you’re selling and buying on the same day, and the money from your sale is paying for your purchase, one slow file can hold up both. That’s why we suggest building a day of flexibility into your moving plans.

Closing Day for Condo Buyers in the GTA

Condo closings have an extra step that freehold closings don’t. Many GTA condo buildings handle key and fob release through their concierge or management office rather than through your lawyer directly. Once your lawyer confirms registration, you typically pick up keys and fobs from the building, not from a lawyer’s office. For more on the condo buying process, see our article on buying a condo in the GTA.

Many buildings also require a move-in deposit, a booked elevator, and compliance with specific move-in hours, which are often weekdays only and end by early evening. Check these rules with the condo’s management office a week before closing, so you know when you can start moving in. Saturday move-ins are common for houses, but many condo buildings don’t allow them.

How Niagara Closings Can Differ From GTA Closings

In our experience, closings in St. Catharines and other Niagara communities can complete earlier in the day than GTA closings. Keys in St. Catharines can change hands as early as 11:00 am or noon on a quiet day, though mid-afternoon is still common, and every transaction is different.

If you’re moving from the GTA to Niagara, don’t assume both closings will run on the same schedule. When your GTA sale and Niagara purchase close on the same day, and the money from the sale is paying for the purchase, your Niagara purchase won’t be able to close until your GTA sale does. Closing your GTA sale a day before your Niagara purchase gives the money from the sale time to arrive. If your purchase has to close first, you may need bridge financing, which has to be approved and comes with its own costs and conditions, so talk to your mortgage specialist early. Our guide to moving from the GTA to the Niagara Region covers this move in more detail.

We are not lawyers, and this article is general information, not legal or financial advice. Closing procedures, costs and timing vary by property, lender and transaction. Your real estate lawyer is the right person to advise on the specifics of your purchase.