Getting your offer accepted is just the beginning of your homebuying journey. Here's what Canadian first-time buyers need to know about the critical closing process.
The notification arrives in your inbox or via phone call, and suddenly your heart races: "Congratulations! Your offer has been accepted." After months of house hunting, mortgage pre-approvals, and competitive bidding in Canada's intense housing market, you've finally reached this milestone. But if you think the hard work is over, think again.
According to Wahi's 2025 Homebuying Pressure Point Survey, 54% of millennials and 41% of Gen Z Canadians have felt significant pressure to own a home — pressure comparable to societal expectations around marriage and having children. Yet while much of this pressure focuses on making an offer and getting it accepted, many first-time buyers are unprepared for what comes next: the closing process.
The reality is that your homebuying journey is far from over when your offer is accepted. In fact, the next 4-6 weeks leading to closing day can make or break your dream of homeownership.
The Gap Between Offer Acceptance and Reality
Recent data reveals just how determined Canadian homebuyers have become. More than half (52%) of Canadians planning to buy in 2025 intend to cut back on spending, while 30% say they'll work longer hours to afford their home. This intense focus on qualifying and bidding often leaves first-time buyers unprepared for the complex closing process that follows.
"The message from many Canadians is clear — they're going to do what it takes to step onto the property ladder," notes Wahi CEO Benjy Katchen. But across the board, self-identified first-time buyers were the most willing to make concessions to afford a home, often without fully understanding the financial obligations that extend beyond their down payment.
What Happens After Your Offer Is Accepted: The Critical Timeline
Week 1-2: Securing Your Financing and Deposits
Once your offer is accepted, you'll need to provide the remainder of a deposit to accompany your offer to purchase. A deposit is a portion of your down payment that will go towards purchasing the home. Most real estate professionals recommend planning for a deposit of 5% of your offer with a bank draft, official cheque, or wire transfer.
Critical Action Items:
- Finalize your mortgage approval (conditions often expire within 5-10 business days)
- Arrange for deposit payment through certified funds
- Forward your lawyer's contact information to your realtor
- Begin shopping for home insurance (required before closing)
Week 2-3: Home Inspection and Condition Removal
If you didn't get a home inspection before, now is a good time to do so. A home inspection from a professional helps ensure all is well before you close. This step is crucial, as an inspection can cost around $400, and real estate professionals see a professional home inspection as money well spent.
The inspection may reveal issues that require negotiation with the seller. If your inspection uncovers any work that the sellers need to take care of, or if your mortgage/loan application takes longer than expected to finalize, your closing date could get delayed.
Week 3-4: Legal Preparation and Title Search
Your lawyer will begin preparing the necessary documentation and conducting a title search to ensure clear ownership transfer. This period is critical for identifying any potential legal issues that could delay or derail your purchase.
Final Week: Pre-Closing Preparations
You can negotiate how many additional visits you're allowed to make before closing, but you should always plan for 2-3 visits, including a final walkthrough. The final walkthrough should occur as close to closing day as possible to ensure the property remains in the same condition as when you made your offer.
The Hidden Costs That Catch First-Time Buyers Off Guard
While first-time buyers often focus intensely on saving for their down payment, many are unprepared for the additional costs that come due at closing. The general rule of thumb is to set aside about 4% of the purchase price for closing costs.
Land Transfer Tax: The Biggest Surprise
Some Canadian provinces charge a land transfer tax when you buy a house. This is generally between 0.5% and 2.0% of the purchase price of the property, and represents the largest closing cost you'll have to pay. For a $600,000 home, this could mean an additional $6,000-$12,000 due at closing.
Provincial Land Transfer Tax Rebates for First-Time Buyers:
- British Columbia, Ontario, and Prince Edward Island offer rebates on some or all of this tax for eligible first-time buyers
- Toronto buyers are eligible for both provincial and municipal rebates
- Quebec offers an additional tax credit (maximum $750) for first-time homebuyers
Additional Closing Costs to Budget For:
Legal Fees and Title Insurance: Your legal fees, including title insurance and adjustments, are due on your closing date
Property Tax Adjustments: You may need to reimburse the seller for property taxes paid in advance
Utility Connections and Deposits: Setting up electricity, gas, water, and internet services
Moving Costs: Professional movers or truck rental expenses
Immediate Home Needs: "The first thing you'll want to do is change the locks," real estate professionals recommend
When Things Go Wrong: Understanding Your Rights and Obligations
The Legally Binding Nature of Accepted Offers
Once an offer has been accepted by both parties and the purchase agreement has already been signed, it becomes a legally binding contract which must be followed. Any violations of this offer or contract will open the buyer to penalties.
However, there are limited circumstances where buyers can exit:
Cooling-Off Periods:
- In Ontario, if the residential property involved is a newly built condominium, buyers can back out of purchase agreements within a 10-day cooling-off period
- In BC, you may have a 3-day cooling off period, and in Ontario, there's a 10-day period to reconsider when purchasing a pre-sale condo directly from the builder
Condition Failures: If financing, inspection, or other conditions cannot be met within specified timeframes
Protecting Yourself During the Closing Process
Work with Qualified Professionals: Your real estate agent, lawyer, and mortgage broker form a critical support team during closing
Understand All Conditions: Pay close attention to the dates that any conditions must be met once your offer to purchase has been accepted so that you complete each task as required
Budget for Delays: Be prepared for the date to shift if your inspection uncovers any work that the sellers need to take care of, or if your mortgage/loan application takes longer than expected to finalize
First-Time Buyer Programs That Can Help During Closing
Federal Programs
First-Time Home Buyers' Tax Credit (HBTC): Eligible buyers can claim up to $10,000 on their tax return for a qualifying home, reducing your income tax payable by up to $1,500
Home Buyers' Plan (HBP): Homebuyers can withdraw up to $60,000, tax-free, from their registered retirement savings plan (RRSP) to put towards a home purchase
Extended Amortization: As of December 15, 2024, first-time home buyers also have the option to extend their amortization to 30 years
Provincial and Municipal Support
Many provinces offer additional support for first-time buyers, particularly around land transfer tax rebates. To properly understand what you'll be eligible for in your province, it's worth speaking to a mortgage broker near you - consultations are free.
The Emotional Reality of Closing
"Many first-time buyers express anxiety about getting 'left behind' and feel urgency to enter the market, even when it may not align with their financial readiness," notes Tracy Valko, founder and CVO of Valko Financial brokerage. "The emotional toll is real."
This pressure can lead to poor decision-making during the critical closing period. Remember that while societal norms were the most common source of pressure for Gen Z (59%) and millennials (55%), your closing decisions should be based on financial readiness and careful consideration of all obligations.
Your Closing Day Checklist
One Week Before Closing:
- [ ] Confirm home insurance is in place
- [ ] Complete final walkthrough
- [ ] Review statement of adjustments from your lawyer
- [ ] Arrange certified funds for closing costs
- [ ] Confirm moving arrangements
Closing Day:
- [ ] Attend closing appointment with your lawyer (or sign vitually a few days before closing, if you're using Deeded)
- [ ] Review and sign all legal documents
- [ ] Provide certified funds for remaining balance
- [ ] Receive keys to your new home
- [ ] Take possession and celebrate responsibly
The Bottom Line: Preparation Makes Perfect
Buying a home is no easy feat, but if you've followed all the steps, dotted your i's, and crossed your t's, the keys to your new place should now be in hand. The key to a successful closing is understanding that acceptance of your offer is just the beginning of a complex process that requires careful planning, adequate financing, and professional guidance.
While Canadian home values have increased over the decades, so has the pressure to own real estate, but as Wahi CEO Benjy Katchen emphasizes, "it's critical for Canadians to take their time, do their research, and buy based on personal readiness — not pressure."
The closing process is where dreams of homeownership either become reality or face unexpected challenges. By understanding what lies beyond your accepted offer, budgeting for all associated costs, and working with qualified professionals, you can navigate this critical phase successfully and avoid the pitfalls that catch many first-time buyers off guard.
Remember: getting your offer accepted isn't the finish line — it's the starting line for the final sprint to homeownership. Make sure you're prepared for the race ahead.
Ready to navigate the closing process with confidence? Deeded.ca provides comprehensive support for first-time homebuyers throughout their journey from offer to ownership. Our platform offers expert guidance, cost calculators, and resources to help you understand every aspect of your home purchase.
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