
Closing day is the day you get the keys to your new home. Exciting? Definitely! But it can also be a little overwhelming, especially for first-time home buyers. What actually happens? What do you need to do as a buyer? What should you expect from the sellers? Your REALTOR®? Your mortgage advisor?
“Closing day is the moment everything you’ve been working toward becomes real,” says Guy De Picciotto, a Mortgage Specialist with RBC. “The funds are transferred, the title is registered, and the home is officially yours. It’s an incredible milestone, but it only feels seamless when buyers have prepared for every piece of it well in advance, including the financial side.”
In this article:
- Understanding closing costs
- Closing vs. completion vs. possession days
- Selling before you buy: managing your move and your cash flow
- Can you move in the moment the home is officially yours?
- What to expect with the key handover
- The buyer’s closing checklist
- Once you’re in…
- Be prepared for some big emotions
Understanding closing costs
Closing costs are separate from your down payment and they’re one of the most consistently underestimated parts of buying a home. RBC suggests budgeting 3% of the purchase price on top of your down payment. This budget can cover costs like:
Every purchase requires a real estate lawyer (or notary in Quebec). Make sure to shop around and budget for title registration, mortgage prep, and closing-day fund transfers. Ask for a written quote upfront.
A one-time premium that protects you and your lender against title defects, fraud, and boundary issues. Required by most lenders; an owner’s policy is also recommended.
An inspector will evaluate the home’s structural condition, roof, plumbing, electrical systems, HVAC, and major appliances, flagging any issues that could lead to costly repairs down the road. It is usually paid before closing, but factor it into your total budget.
If the seller has prepaid taxes or utilities past the closing date, you’ll reimburse them the prorated difference. These appear on your statement of adjustments. Review it with your lawyer before closing day.
If your down payment is under 20%, your premium from CMHC, Sagen, or Canada Guaranty is added to your loan. But in Ontario, Manitoba, and Quebec, the PST on that premium must be paid in cash at closing and cannot be rolled into the mortgage.
These are some of the most common one-time closing costs, but depending on your province, property type, and mortgage, there may be others, such as appraisal fees, status certificate costs for condos. Start building your closing cost estimate the moment you begin making offers. Your RBC Mortgage Specialist can help you understand and budget for all these costs and your statement of adjustments will confirm the final number before closing day arrives.
Closing vs. completion vs. possession days
In Canadian real estate, completion day and closing day are often used interchangeably in casual conversation, but they can mean slightly different things depending on where you are and what your contract says.
- Completion day is the day when the purchase is legally finalized. The buyer’s lawyer transfers the funds to the seller’s lawyer, the title is registered at the land titles office, and the deal is officially complete.
- Closing day is often used to mean the same thing, but some provinces and contracts distinguish it from possession day (the day the buyer is allowed to physically move in).
For example, in Ontario, closing day usually means both: the funds and title are transferred and the buyer gets possession the same day. In British Columbia, however, it’s common for possession day to be the day after completion. That means the sale is finalized on completion day, but the buyer doesn’t get the keys or move in until possession day.
“The process can look complicated on paper,” says De Picciotto. “But when your mortgage documents are signed, your funds are confirmed, and your lawyer has everything they need ahead of time, it really does come together smoothly.”
Selling before you buy: managing your move and your cash flow
Not every closing day is about your first set of keys. If you’re selling your current home to buy your next one, you’re juggling two transactions, and the timing and cash flow can get tricky. Here’s what to keep in mind so both closings go smoothly.
“There are a few ways to bridge that gap, and the right one depends on your timeline, your equity, and how flexible your dates are,” says De Picciotto.
Here are a few strategies to manage the move and your cash flow when selling before buying:
If your purchase closes before your sale, your lender may offer a bridge loan, which is a short-term loan secured against both properties, typically lasting 30–90 days. You’ll need a firm sale agreement on your current home to qualify, so talk to your RBC Mortgage Specialist early.
You’ll pay closing costs on both transactions. From legal fees to land transfer tax, and adjustments on the purchase, plus legal fees and commissions on the sale. You may need short-term storage and temporary housing, overlap costs like double utility payments or bridge loan interest. Make sure to factor these costs into your cash flow plan.
Your sale proceeds aren’t all spendable cash. After paying off your mortgage, commissions, and legal fees, what’s left is what you actually have for your next down payment.
Can you move in the moment the home is officially yours?
That depends on the contract.
“I get this question a lot, and the honest answer is: not quite,” says De Picciotto. “Before your lawyer can release possession, the mortgage funds need to be fully advanced and received on their end. That process usually takes a few hours on closing day. So while everything may be signed and sealed by mid-morning, you may not get the green light until early afternoon. I always tell clients: don’t book your movers for first thing in the morning. Give yourself a buffer, and confirm the expected fund transfer timeline with your lawyer a day or two before.”
What to expect with the key handover
Nothing says, “Yay, this is real!” like unlocking your new front door. But first, you need the key. So how do you get it? This process also depends on where you live, what your contract specifies, and how the REALTORS® in your transaction prefer to handle things.
The key release only happens once everything is official. So if your transaction closes on a Friday afternoon and your lawyer has already left for the day, you may need to wait until Monday to get into the new place. Planning ahead (and confirming your lawyer’s hours!) can help avoid this stressful surprise.
The buyer’s closing checklist
Buyers can get caught up in the excitement of the transaction and miss doing a few things that will make their move (and the logistics of their first couple of days as homeowners) a little smoother. Here are some tips to be fully prepared for closing day:
Once you’re in…
Be prepared for some big emotions
“I’ve walked alongside a lot of clients on closing day, and the emotions are always real: excitement, relief, sometimes a little disbelief that it’s finally happening,” says De Picciotto. “The financial prep is what I’m here for, but what I always tell people is that closing day is so much bigger than the numbers. It’s the start of something new, and that’s worth taking a moment to appreciate.”
Closing day may look like the finish line, but it also truly is the start of something new. With proper prep and the right guidance from a trusted REALTOR®, the process can be smooth, stress-free, and full of joy.
You may also be interested in reading…
- Ready to Sign? Don’t Forget the Closing Costs
- Buyer’s Home Closing Documents
- What to Do First When Moving into a New Home
- Budgeting for Closing and Moving Costs
- Your Address Change Checklist: Who You Should Notify and When
This article is intended as general information only and is not to be relied upon as constituting legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. The information presented is believed to be factual and up-to-date but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by Royal Bank of Canada or any of its affiliates.







































