Closing Day in the GTA: What to Expect
Closing day is one of the most important steps in buying a home. It’s the point where ownership officially transfers, funds are exchanged, and keys are released. While it’s an exciting milestone, it can also feel tense if you’re not sure what to expect.
What Happens Before Closing
About a week before closing, your lawyer will contact you to review the closing documents. This call is your chance to ask questions and make sure you understand every detail before signing.
Behind the scenes, lawyers receive the Agreement of Purchase and Sale (APS) and related documents through the agents’ offices once the deal is firm. The listing agent’s admin typically sends the paperwork to the seller’s lawyer, while the cooperating agent’s admin sends it to the buyer’s lawyer. This process ensures both lawyers have the information they need to prepare.
The Role of Your Lawyer
Your lawyer handles the final checks and balances to make sure everything is in order. This includes:
- Reviewing title and property taxes
- Confirming mortgage instructions from your lender
- Ensuring any conditions have been satisfied
- Preparing the statement of adjustments, which outlines closing costs and credits
They also manage the transfer of funds between buyer and seller. Once this exchange is complete, the property can officially close.
The Final Walk-Through
Many buyers arrange a final walk-through in the days leading up to closing. This visit allows you to confirm that the home is in the condition agreed upon and that any negotiated repairs or inclusions are in place. Skipping this step can create issues later, since it’s difficult to resolve problems after closing.
A real-life example from one of our clients shows why this step matters. Days before closing on a property in Orangeville, we discovered the seller had left the home in disarray. Garbage was piled throughout the house and lawn, and it was clear the seller was struggling to prepare for closing. We alerted both lawyers and secured a $500 holdback to cover potential cleanup. Fortunately, the listing agent stepped in, cleared the garbage with a truck, and confirmed the property was ready. The takeaway: never skip the final walk-through.
The Day of Closing
On closing day, several things need to happen before you can receive your keys. Your lawyer will confirm that funds have been received, the title has transferred, and all documents have been registered.
Because multiple transactions are often linked in a chain—especially if you’re selling your home and buying another—delays can occur. For this reason, keys are not usually released until after 4:00 p.m. Once everything is finalized, your lawyer will authorize key release.
Since COVID-19, buyers no longer pick up keys at the lawyer’s office. Instead, keys are usually left in a lockbox at the property, and your agent will provide you with the code once the deal has closed.
Costs to Expect
In addition to your down payment, you’ll need to cover:
- Legal fees and disbursements
- Land transfer tax (including Toronto’s municipal tax, if applicable)
- Title insurance
- Adjustments for property taxes or utilities
Make sure your lawyer provides a detailed statement so you know exactly what you’re paying.
Practical Tips for a Smooth Closing
- Stay in close contact with your lawyer and mortgage broker
- Ensure you have your down payment and closing costs ready in advance
- Book your movers for the evening or the following day to avoid timing conflicts
- Keep utility and insurance accounts set up in your name for the day of closing
Key Insight for GTA Buyers
Closing day in the GTA can look different from other regions in Ontario because of higher transaction volumes. When multiple homes are linked in a chain of sales, delays are more common. Planning for this possibility will save you stress on moving day.
Closing Insight
Closing day is the finish line of your home purchase, but it works best when you know what to expect. With the right preparation and the support of your lawyer and agent, you can avoid surprises and focus on settling into your new home.
Typical Closing Costs in Ontario
Closing day involves more than just the purchase price of your home. Buyers should budget for several additional costs. While the exact amount depends on your purchase price and situation, here are the most common expenses:
| Expense | Estimated Cost | Notes |
|---|---|---|
| Land Transfer Tax (LTT) | 0.5%–2.5% of purchase price | First-time buyers may qualify for a rebate (up to $4,000 provincially; up to $4,475 in Toronto). |
| Legal Fees & Disbursements | $1,500 – $2,500 | Covers lawyer’s time, registration fees, and admin costs. |
| Title Insurance | $250 – $400 | One-time cost protecting against fraud, title defects, or survey issues. |
| Home Inspection (if applicable) | $400 – $600 | Typically paid before closing, but part of the overall cost. |
| Appraisal Fee | $350 – $500 | Required by some lenders to confirm property value. |
| Mortgage Default Insurance (if <20% down payment on homes under $1.5M) | Added to mortgage | Premium varies depending on down payment size; provided by CMHC, Sagen, or Canada Guaranty. |
| Property Tax / Utility Adjustments | Varies | Reimbursement to seller for prepaid amounts. |
| Moving Costs | $1,000+ | Depends on distance, home size, and services needed. |
💡 Quick tip: Most buyers should budget 3–5% of the purchase price to cover closing costs. First-time buyers using rebates and incentives may see this reduced.
FAQs About Closing Day in Ontario
Q. When will I get the keys to my new home?
A. In most GTA transactions, keys are released after 4:00 p.m. once funds have cleared and documents have been registered. Your agent will usually access them from a lockbox at the property.
Q. Do I need to attend the closing in person?
A. No. Your lawyer handles closing on your behalf. You’ll sign all required documents in advance, usually about a week before closing.
Q. What happens if there’s a delay on closing day?
A. Delays are possible if your purchase is linked to other transactions. If funds aren’t received in time, key release may be pushed later in the day. In rare cases, closings can extend to the next business day, but your lawyer will update you immediately.
Q. Can I skip the final walk-through?
A. It’s not recommended. The final walk-through is your last chance to confirm the property is in the agreed condition. If problems arise, your lawyer can hold back funds or negotiate a solution before closing.
FAQs About Closing Costs in Ontario
Q. How much should I budget for closing costs in Ontario?
A. Most buyers should budget 3–5% of the purchase price for closing costs. This typically covers land transfer tax, legal fees and disbursements, title insurance, appraisal fees, adjustments, and moving costs.
Q. What closing costs are typical for Ontario home buyers?
A. Common items include land transfer tax, legal fees and disbursements, title insurance, appraisal fees, home inspection (if applicable), property tax and utility adjustments, and moving costs.
Q. Do first-time buyers get help with closing costs?
A. Eligible first-time buyers can receive an Ontario land transfer tax rebate up to $4,000 and, if purchasing in Toronto, an additional municipal rebate up to $4,475. These rebates reduce total closing costs.
Q. When is land transfer tax paid in Ontario?
A. Land transfer tax is paid on closing by your lawyer when the property is registered. If you qualify for a first-time buyer rebate, it is applied at that time.
Q. Does mortgage default insurance affect closing costs?
A. If your down payment is under 20% on homes under $1.5M, mortgage default insurance is usually added to your mortgage rather than paid as a cash closing cost, though provincial sales tax on the premium may be due at closing in some provinces.
Checklist CTA
📋 Want to make sure you don’t miss a step? Download our Free Ontario Home Buyer Closing Checklist to stay organized and confident on closing day.
