Buying a home is a significant milestone in anyone’s life, and as you approach the closing process, there are several crucial steps to ensure a smooth and successful transition from buyer to homeowner. This comprehensive closing checklist for homebuyers in Canada will help you navigate the final stages of your real estate journey.
1. Final Walk-Through Inspection
Before closing, schedule a final walk-through of the property. This step is essential to ensure that the home is in the same condition as when you made the offer and that any agreed-upon repairs or improvements have been completed satisfactorily.
Check that all appliances and fixtures are in working order.
Verify that the property has been vacated by the seller.
Inspect for any new damage or issues that may have arisen since your last visit.
2. Secure Financing
Double-check your financing arrangements to ensure everything is in order for the closing. This includes:
Verifying that your mortgage approval is finalized.
Confirming the interest rate and mortgage terms.
Ensuring you have adequate funds for the down payment and closing costs.
3. Review Closing Disclosure or Statement of Adjustments
Your lawyer or notary will provide you with a closing disclosure or statement of adjustments, which outlines the financial details of the transaction. Review this document carefully to understand the breakdown of costs, including:
Purchase price
Property taxes
Legal fees
Land transfer taxes
Adjustments for prepaid expenses
4. Title Search and Insurance
Your lawyer or notary will conduct a title search to ensure there are no outstanding liens or encumbrances on the property. They will also arrange for title insurance to protect you against any potential title defects or disputes.
5. Property Insurance
Purchase homeowner’s insurance and provide proof of coverage to your lender before closing. This insurance is typically a requirement for securing a mortgage.
6. Secure a Certified Cheque or Bank Draft
You’ll need to have a certified cheque or bank draft ready for the closing costs, which can include your down payment, land transfer taxes, legal fees, and other associated expenses.
7. Coordinate with Your Lawyer or Notary
Your legal representative will guide you through the closing process and ensure all necessary documents are in order. Be prepared to provide them with the following:
Identification documents
Proof of insurance
Mortgage details
Down payment funds
8. Finalize Utility Transfers
Contact utility companies (gas, water, electricity, cable, internet) to transfer accounts into your name as of the closing date. Ensure there are no interruptions in service.
9. Arrange for a Final Meter Reading
For utilities like water and gas, request a final meter reading to avoid paying for the seller’s usage after the closing date.
10. Plan for Moving Day
Coordinate the logistics of moving day well in advance. Hire a reputable moving company or enlist the help of friends and family. Ensure you have access to the property on the closing day.
11. Attend the Closing Meeting
On the day of closing, you’ll meet with your lawyer or notary to sign the necessary documents and complete the transaction. Be prepared to:
Sign the deed and mortgage documents.
Provide your down payment and closing costs.
Review and understand all paperwork before signing.
12. Receive Keys and Possession
Once all documents are signed, and the funds have been transferred, you’ll receive the keys to your new home. Congratulations! The property is officially yours, and you can take possession.
13. Update Your Address
Notify relevant parties of your change of address, including:
Canada Post
Financial institutions
Government agencies (e.g., CRA, Service Canada)
Health care providers
Subscription services
Family and friends
14. Complete Post-Closing Tasks
After the closing, there are several post-closing tasks to address:
Set up regular mortgage payments.
Register your home warranty, if applicable.
Review and retain all closing documents and receipts.
Schedule any necessary home repairs or renovations.
15. Celebrate Your New Home
Take some time to enjoy your new space and celebrate this exciting chapter in your life. Consider hosting a housewarming party to share your joy with friends and family.
Conclusion
Buying a home is an intricate process with many moving parts, and the closing is the final and most crucial step. By following this comprehensive closing checklist, you can ensure a seamless transition into your new Canadian home. Remember to consult with your real estate agent, lawyer or notary, and financial advisor to address any specific concerns related to your purchase. With careful planning and attention to detail, you’ll be settling into your new home with confidence and peace of mind. Happy homeownership!
