Buying a Home in Ontario? 7 Things to Check Before Closing

Buying a home is an exciting milestone, but there is more to the process than finding the right property and signing an agreement. Before you receive the keys, several legal and financial details need attention. Missing an important step could lead to unexpected costs, delays, or complications on closing day.

Whether you are purchasing your first home or moving to a new property, understanding what happens before closing can help you feel more prepared.

Here are seven important things to check before closing on a home in Ontario.

7 Key Points To Consider Before Closing On Your Home In Ontario

1. Review the Agreement of Purchase and Sale Carefully

Once your offer is accepted, the Agreement of Purchase and Sale becomes an important document governing the transaction. It sets out the purchase price, deposit, closing date, and other terms agreed upon by the buyer and seller.

Take time to understand the conditions included in the agreement. These may relate to financing, a satisfactory home inspection, or other matters specific to the property. Pay close attention to deadlines, as missing a contractual deadline can affect your options.

If any term is unclear, ask your real estate lawyer to explain it before proceeding. It is much easier to address questions early than to discover a problem shortly before closing.

2. Confirm Your Mortgage and Financing Arrangements

Getting a mortgage pre-approval is a useful first step, but it does not necessarily mean your final mortgage has been approved. The lender may still need to review the property, verify financial information, and complete other requirements.

Before closing, confirm that your lender has approved the mortgage and that you understand the conditions attached to it. Ask when the funds will be released and whether any documents or payments remain outstanding.

Keep in mind that mortgage financing and contractual deadlines are separate matters. If you have concerns about securing financing, seek advice promptly rather than assuming the closing date can be changed automatically.

3. Understand Your Closing Costs Beyond the Purchase Price

The purchase price is only one part of the cost of buying a home. Buyers should budget for additional expenses that may become payable before or on closing day.

Depending on the transaction, these may include:

• Ontario land transfer tax and, where applicable, Toronto's municipal land transfer tax.

• Legal fees and applicable disbursements.

• Title insurance and related transaction expenses.

• Adjustments for property taxes, utilities, or other costs shared between the buyer and seller.

• Mortgage-related expenses, where applicable.

First-time homebuyers may qualify for land transfer tax rebates if they meet the relevant eligibility requirements. The rules and amounts differ between Ontario and Toronto, so check the applicable requirements rather than assuming a rebate will cover the full tax.

Ask your lawyer for an estimated statement of adjustments and closing funds well before the closing date. This gives you time to arrange the money you will need.

4. Have a Title Search Completed

A title search helps establish who legally owns the property and identifies registered interests or restrictions that may affect it. Depending on the property, these could include mortgages, liens, easements, or other registered matters.

Some registered interests are ordinary and expected. Others may require further investigation or action before the purchase can proceed.

Your real estate lawyer can review the title information, explain relevant findings, and advise you on issues that may affect ownership or the intended use of the property.

This step is particularly important because a property can look perfectly fine during a viewing while still raising legal questions that are not visible to the buyer.

5. Arrange a Final Walk-Through and Check the Property's Condition

A final walk-through gives you an opportunity to check the property's condition before closing. It is not necessarily a substitute for a professional home inspection, nor does it guarantee that every issue will be discovered.

Compare the property's condition with what you understood had been agreed upon. Check that any included appliances or fixtures remain in place, look for obvious damage, and confirm that agreed repairs have been addressed where applicable.

If you notice a significant problem, document it and contact your real estate agent or lawyer promptly. The appropriate next step will depend on the agreement and the circumstances. Do not assume you can simply delay closing or withhold payment without understanding the legal consequences.

6. Review the Documents and Prepare Your Closing Funds

As closing approaches, your lawyer will help coordinate the legal documents and financial arrangements needed to complete the purchase.

Depending on the transaction, you may need to sign mortgage documents, transfer documents, and other paperwork. You will also need to provide the required closing funds according to your lawyer's instructions.

Confirm the amount due, the payment method, and the deadline for delivering the funds. If you are unsure about a payment request, verify it directly with your lawyer using a trusted contact method. Real estate transactions can be targets for payment fraud, including emails containing altered banking instructions.

Do not rely solely on emailed changes to banking details. A quick independent verification can help protect a substantial amount of money.

7. Work With a Real Estate Lawyer in Toronto Before Closing Day

A real estate lawyer helps manage the legal aspects of completing a property purchase. This can include reviewing title information, explaining legal documents, addressing certain title or contractual issues, coordinating with the lender, and arranging the registration and transfer required to complete the transaction.

For buyers purchasing in Toronto, there may be additional local considerations, including the city's municipal land transfer tax. Your lawyer can help you understand the costs and legal requirements relevant to your particular purchase.

If you are looking for a real estate lawyer in Toronto, consider asking about the lawyer's experience with your type of transaction, the services included in the quoted fees, expected timelines, and any additional costs that may arise.

Getting legal guidance early can help you identify questions before they become last-minute problems. It also gives you a clearer understanding of what needs to happen before ownership can be transferred.

Make Your Closing Day Less Stressful

Buying a home involves many moving parts, from financing and contractual deadlines to title searches and closing funds. Preparing for these steps in advance can make the process more manageable and help you avoid preventable surprises.

Start by reviewing your agreement, confirming your financing, budgeting for closing costs, and responding promptly to requests for documents or funds. If something is unclear, ask questions rather than making assumptions.

Every property transaction is different, and the right approach will depend on the agreement, the property, and your circumstances. A qualified real estate lawyer can explain the legal requirements that apply to your purchase and help you prepare for closing with greater confidence.

This article provides general information about residential property purchases in Ontario and is not legal advice. Buyers should seek advice based on their specific circumstances.