Buying a home in Canada is a significant life milestone and likely one of the largest financial decisions you’ll ever make. Whether you’re a first-time homebuyer or a seasoned investor, it’s crucial to approach the closing process with clear expectations and thorough due diligence. The final steps before taking ownership of a property may seem procedural, but overlooking key considerations can lead to costly consequences.

Here are eight critical things every buyer should always consider before closing the deal.

1. Reconfirm Your Financing Approval

Even if you were pre-approved months ago, a lot can change between the offer and the closing date. Mortgage conditions may shift, interest rates may rise, or your financial situation could evolve. Before closing, ensure your lender has completed a final underwriting review. Verify that you have met all the conditions of the mortgage commitment letter.

In Canada, many lenders require updated pay stubs, bank statements, and proof of employment prior to funding. Avoid making large purchases or changing jobs before closing, as these can affect your mortgage eligibility.

2. Understand All Closing Costs

Too many buyers focus on the purchase price and overlook the range of additional expenses due at closing. These include:

• Land transfer tax (especially substantial in Ontario and British Columbia)
• Legal fees
• Title insurance
• Home inspection costs
• Appraisal fees
• Property tax adjustments

In Ontario, for example, first-time homebuyers may qualify for rebates on the land transfer tax, but they must apply for them. Understanding these costs in advance will help you avoid surprises on closing day.

3. Review the Status Certificate (for Condos)

If you’re buying a condominium in Canada, the status certificate is a vital document that outlines the financial and legal health of the condo corporation. It provides information on:

• Reserve fund balance
• Pending lawsuits
• Monthly maintenance fees
• Special assessments (extra costs levied on owners)

A weak reserve fund or pending special assessment could mean future financial burdens. According to a top realtor in Pickering, many condo buyers may overlook the fact that condo fees are a continuous monthly expense and do not add to the principal or interest. Always have your real estate lawyer review the certificate before firming up your offer.

4. Conduct a Final Walkthrough

A final walkthrough, typically scheduled a day or two before closing, gives you one last chance to inspect the property. This step is especially important if the seller agreed to make repairs or leave specific items.

You’ll want to confirm:

• Appliances and systems are in working condition
• No new damage has occurred
• Agreed-upon inclusions, such as window coverings or light fixtures, are still present
• The property is clean and vacant unless stated otherwise

If any issues arise during this walkthrough, your agent can help negotiate a holdback or remedy with the seller before closing.

5. Ensure All Conditions Are Met

Your Agreement of Purchase and Sale (APS) may include conditions such as financing, home inspection, or sale of the buyer’s existing home. These conditions must be fulfilled or waived by specific deadlines.

Failure to meet even one condition can delay or cancel the deal. For example, if your financing condition isn’t waived on time, the seller may walk away from the agreement and retain your deposit.

Work closely with your real estate agent and lawyer to track each condition and ensure everything is submitted in writing and on schedule.

6. Understand Property Insurance Requirements

In Canada, your mortgage lender will require proof of home insurance before they release funds. This insurance must be effective as of the closing date, not after. Shop around for home insurance at least a couple of weeks in advance and make sure your policy covers:

• Fire
• Water damage
• Theft
• Personal liability

Also, if the property is located in a flood-prone area, inquire about overland water protection, as it is not always included in standard policies.

7. Confirm What’s Included (and Not)

The APS should clearly list all inclusions and exclusions, from kitchen appliances to light fixtures and window coverings. Don’t assume anything. Even if you saw a dishwasher during your visit, it doesn’t mean it’s included unless specified.

Sellers may also try to swap appliances with older models before handing over the keys. Make note of model numbers during your initial showings or inspection to avoid disappointment. It’s always better to clarify than to find yourself in a dispute.

8. Secure a Good Real Estate Lawyer

A knowledgeable real estate lawyer is an essential part of your closing team. They will:

• Review the title and check for liens
• Explain and confirm all documents before you sign
• Manage the transfer of funds
• Register your ownership with the Land Titles Office
• Help you apply for land transfer tax rebates if applicable

Choose a lawyer who specializes in real estate and is familiar with your province’s laws. Legal fees are a closing cost worth investing in. Cutting corners here could cause costly issues later on.

Diligence Brings Peace of Mind

Buying a home is exciting, but closing a deal isn’t just about signing papers. It’s about protecting your financial investment and starting your new chapter with confidence. From financing to insurance and legal reviews, these eight areas represent more than a checklist. They are safeguards that can save you time, money, and stress.

Your real estate agent, mortgage broker, and lawyer are your key allies in this process. Keep communication open, ask questions, and be proactive. Informed buyers are empowered buyers, and in Canada’s competitive and ever-evolving real estate landscape, that can make all the difference.