Congratulations on purchasing your first home! We’ve put this together to help you figure out what you need to do before your closing day.
What happens on the closing day? A few days before the closing day, your lawyer will meet with you and go over all the documents such as the statement of adjustments (a document that details adjustments to the purchase price based on bills/taxes paid in advance or owing by the seller). On the closing day, your lawyer will have all the details for your financing from your bank and will transfer funds to pay for the remaining amount owed on the property (your purchase price minus your deposit check). Once this is done and the title of the property has been transferred into your name, you will get a call from your lawyer’s office to go sign documents and pick up the keys to your new home! This can take varying amounts of time depending on a few things so you might have to be patient, however this will absolutely happen no later than 6pm on the date of your closing.
How can I prepare for my closing day? There are several things to do before your closing day:
1. Hire a moving truck.
Just remember you may not get access to your home until 6pm on the day of closing so you might have to be flexible with your truck rental.
2. Arrange to have the bills transferred into your name.
The seller will ensure that they cancel all of their services and so they can then be set up in your name. Sometimes you may need to call a technician to come and set up in your home for things like cable- we recommend calling a week or two before your closing to ensure you get an appointment. If you have just purchased a condo, your maintenance fees may cover some of these costs and you may not need to set up utility accounts. We have provided some of the main services and phone numbers you may need to call below (these may vary depending on your city):
a. Heat- Enbridge Gas: 1-877-ENBRIDGE (362-7434)
b. Water- Peel Water: 905-791-8711
Halton Water: 905-825-6000
Toronto Water: 416-338-4829
c. Hydro- EnerSource: 905-273-7425 (for Mississauga)
d. Cable/Internet/Home Phone- Rogers Cable: 1-866-210-4059
Bell: 1 888 759-3474 Cogeco: 1-855-404-0005
3. Put aside money for closing costs.
Usually it is recommended that you put aside 1.5-3% of your purchasing price for closing costs (usually it will be on the higher end if you are purchasing in Toronto). These include adjustments for utilities, lawyer fees and land transfer tax. In Ontario, every time you purchase a property you must pay land transfer tax on closing. In Toronto you must pay both the Ontario tax and a Toronto land transfer tax. First time buyers receive a rebate on their tax up to $2000 and your lawyer can arrange for this rebate to be transferred back to you on closing. You can also receive a rebate for the Toronto tax if your first home is purchased in Toronto. To find out exactly how much you will owe, check out our land transfer tax calculator at http://www.thamteam.com/Land-transfer-tax.
4. Arrange Home Owner's Insurance
Whenever you get a mortgage, your lender will always require proof that you have acquired a home insurance policy. If you are purchasing a condo sometimes the fire insurance included in your maintenance fees is enough to satify this requirement, however it is recommended you get both even if this is the case. You can usually get a package deal with your auto insurance or you may be able to get home insurance through your bank. The cost will depend on the size of your home but as an example a home in the price range of $500,000 will be in the ballpark for $50-$75 per month.
5. Wait to buy big ticket items.
Avoid purchasing new furniture or appliances on credit until after you have moved in as this can affect your credit score and potentially affect your ability to get your mortgage on closing day.
For more information contact Melanie at firstname.lastname@example.org.