When closing day is approaching for your new home purchase, it’s natural to feel some anxiety.

You’re not alone! McGarr Realty teams know this is probably the largest financial transaction you have ever made; it may also be the first time you have owned your own home.

It’s an exciting time – but there’s sure to be some anxiety.

Rest assured, your McGarr Realty team of experts is standing behind you, helping make this big purchase happen. Your team has others on it, too: You’ll have help from our broker and support staff; your lawyer and his or her staff (worth their weight in gold!); your insurance professional and your financial institution representative or mortgage specialist.

Each team member works together with you to complete the pieces of the closing-day puzzle.

I bet you’re curious now! Want to know what happens on closing day? We can answer that question!

First, let’s assume you have set your closing day for any amount of time beyond three weeks (30 days is popular in Niagara). You’ll need to leave enough time to arrange the mortgage; arrange for insurance coverage; contact a lawyer to arrange title search and processing of your file as Ontario law requires.

Closing day is the day your home purchase will be finalized; when all that money changes hands, and finally, you’ll get the keys. The deposit you tendered with your offer passes from the REALTOR®’s holding account to the seller, along with funds from your financial institution to cover the remainder of the purchase, and your down payment. 

In addition, you’ll need funds to cover registration fees like title insurance; your financial institution’s appraisal fee; land transfer tax; your home inspection fee, if you haven’t paid it already; legal fees and disbursements, and provincial sales tax on your CMHC insurance (the bulk of which is financed through your mortgage, although PST must be paid at closing).

Sounds like a lot, right? According to most financial institutions in Ontario, closing costs can range from 1.5 per cent of your purchase price, up to four per cent of your purchase price. Don’t forget to budget for incidentals, too: If your home is a rural property with septic system and well, you’ll also need to pay for tests to these systems. If it’s a condo you have purchased, you may also need to cover a fee relating to an estoppel certificate.

Other fees that must be covered for closing day include reimbursements to previous owners for utility costs; your first payment for property insurance; your first (and sometimes partial) payment for property taxes; payment to your movers, if that is happening today, and any gratuities that may involve.

It’s pretty complicated! Your legal team, however, will be in charge of handling most finances on closing day, with all disbursements required. Once the financial work has been completed and all your paperwork has been signed, your legal team registers the home in your name and provides you with the deed and the keys. 

At that point, our McGarr Realty team will be in touch with you to offer our congratulations. 

McGarr Realty team members have been there, so we know that in addition to a little anxiety beforehand, there will also be excitement, euphoria and joy, once you have those keys in your hands!

Here’s to your family’s new beginnings – our McGarr Realty teams can’t wait to help you go home!


Are you curious about the process involved in buying or selling a home? The experts at McGarr Realty are happy to answer any questions you might have. Give our office a call at 905-468-9229 in Niagara-on-the-Lake, or 905-687-9229 in St. Catharines. Alternatively, send us a message via the contact page on our website, HERE.

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