First-Time Homebuyer Closing Checklist for Ontario

Buying your first home is exciting, and the weeks between an accepted offer and closing day can feel like a blur of paperwork. This checklist walks through what happens, what you need to do, and when, so nothing is left to the last minute.

Before you make an offer

• Get a mortgage pre-approval. It tells you how much you can borrow and at what rate, and it helps you make a firm, confident offer.
• Budget for closing costs, not just the down payment. Closing costs typically include land transfer tax, legal fees and disbursements, title insurance, and adjustments for prepaid property taxes or utilities.
• Choose your lawyer. Your lender, realtor and the seller's lawyer will all need your lawyer's contact details once your offer is accepted.
• Think about how you will hold title. If you are buying with someone else, you will choose between joint tenancy and tenancy in common. Each has different consequences if one owner passes away, so ask your lawyer to explain the difference.

Once your offer is accepted

1. Send the agreement to your lawyer, with every amendment, waiver and notice of fulfilment.
2. Pay your deposit on time. The agreement usually requires the deposit to be delivered within a short period, often 24 hours of acceptance. Missing the deadline can put the deal at risk.
3. Satisfy your conditions before they expire. Common conditions include financing, a home inspection and, for condominiums, a review of the status certificate.
4. Finalize your mortgage. Give your lender everything it asks for promptly, and confirm it has your lawyer's details.
5. Arrange home insurance. Your lender will require proof of insurance on the property effective from the closing date.

Understand land transfer tax and first-time buyer refunds

Ontario charges land transfer tax on the purchase price of most homes. If the home is in the City of Toronto, a separate municipal land transfer tax applies as well. Eligible first-time buyers may receive a refund of up to $4,000 of the Ontario tax and, in Toronto, a rebate of up to $4,475 of the municipal tax.

To qualify for the Ontario refund, you generally must be at least 18, occupy the home as your principal residence within nine months of closing, and never have owned a home, or an interest in a home, anywhere in the world. If your spouse owned a home while they were your spouse, you may not qualify.

Use our land transfer tax calculator for an estimate, and your lawyer will confirm the exact amount before closing.

Using registered savings for your down payment

If you plan to use the RRSP Home Buyers' Plan or a First Home Savings Account (FHSA), speak with your financial institution early. Withdrawals take time to process and have their own eligibility rules and deadlines. Make sure the funds will be available well before you need to give them to your lawyer.

Two weeks before closing

• Book your signing appointment with your lawyer, usually a few days before closing.
• Review the statement of adjustments. It shows the purchase price, credits and adjustments, such as property taxes the seller has already paid.
• Confirm your funds. Your lawyer will tell you the exact balance required to close and how to provide it, typically by bank draft or wire transfer. Plan for banking limits and processing times.
• Gather your identification. Bring two pieces of valid government-issued identification, one with a photo.
• Book movers and arrange utilities, including hydro, water, gas, internet and any rental equipment such as a hot water tank.

Closing day

On closing day, your lawyer receives the mortgage funds from your lender, combines them with your funds, and sends the purchase price to the seller's lawyer. The transfer is registered electronically, and once registration is complete the seller's lawyer releases the keys.

Closings often complete in the afternoon. Keep your phone nearby and avoid booking movers for early morning. If anything delays the closing, your lawyer will keep you informed.

After closing

• Watch for your reporting letter. It summarizes the transaction and includes copies of your registered documents.
• Set up your property tax account with the municipality, if your lender is not paying taxes for you.
• Keep your documents safe. Store your reporting letter, title insurance policy and closing documents together.
• Update your will. A new home is a major asset. It is a good moment to put a will and powers of attorney in place or review existing ones.

Quick checklist

Every purchase is different. If you are buying your first home in Mississauga, Brampton, Toronto or elsewhere in the GTA, we would be glad to walk you through the process. Learn more about our real estate services.