You have met with your mortgage broker and have met all the conditions to secure financing.  Next step is to meet with your lawyer.  A referral is always a good way to go in finding a lawyer.  When you have found one or a few, feel free to give them a call to see how much they will charge you.  Fees can vary.  You do not have to wait until closing day to meet with your lawyer; you can do so days ahead and this gives you more time on move day as well as peace of mind.

Here is a basic idea of the items that will be reviewed at your lawyers.

Down Payment:  in setting up your financing you agreed to a certain amount as a down payment.  The amount that you put down as a deposit with your Purchase Offer will be factored as part of your down payment money.  The total amount of down payment will be purchase price minus mortgage amount minus deposits.  You lawyer will finalize this number for you which you will bring as certified funds.  If you are selling a home and purchasing another one, then whatever equity is coming from that property will form part of the down payment.  The total amount of the down payment will be purchase price minus mortgage amount, minus existing equity, minus deposits.

Land Transfer Tax: this tax is calculated as a percentage of the purchase price of your home, which is payable upon closing.  The amount varies in different provinces but you lawyer will be able to determine what the amount is for you.  If you are a first time home buyer you may receive rebates on Land Transfer Tax so decreasing the amount you owe.

PST on Insured Mortgages:  When you put less than 20% down on the purchase of a home, it will be insured by one of the three companies that insure mortgages in Canada.  This mortgage insurance premium which most commonly is added to the mortgage, is charged a PST tax which you will be required to pay at closing.

Title Insurance: most lenders require title insurance which protects you and the lender who mortgages your property from any property ownership disputes.  This is purchased through your lawyer/notary and will be added to your closing costs.  Amounts vary so check with your lawyer as to what this is.

Adjustments:  when purchasing a home the existing owners may have pre paid some items such as utilities, property tax etc.  If this is the case you will be reimbursing the previous owners that amount that they have pre paid.  These amounts will be calculated by your lawyer

Property Taxes:  a lender may collect property taxes on your behalf or you may decide to pay your property taxes directly.  You can set up a pre payment plan with the city to pay your taxes monthly or make quarterly installments.  If the lender is paying your property taxes, there may be a tax holdback at closing which is a lump sum that is needed to ensure there is enough funds to cover your tax obligations for the year. This tax hold back along with monthly payments included with your mortgage payments will ensure your property taxes are paid by the lender to the city.

Bridge Financing:  sometimes closing dates just don’t match.  If your purchase is closing before the sale of your existing property, this is where bridge financing happens.  It bridges the gap between dates and is considered a short term loan that has interest and fees.  The loan and fees will be paid off when your lawyer receives the money from the sale of your previous property.

Fire/Property Insurance: Before closing you will need to set up a new fire/property insurance policy or change your existing one.  You can request the insurance company to email it directly to your lawyer to save you time.  When you make the call to your insurance company, ensure you have the details of the property including the name and address of the mortgage company as they will ask you a bunch of questions to complete their file in providing the quote.  The document once completed is often referred to as a binder.

Legal Fees: This is the fee the lawyer charges you for the work he does on your behalf.   Fees vary but often they will break it down for you as they have a certain base fee and then any other disbursements will be added to this fee.

Once you have met with the lawyer, signed all the documents, brought in your certified funds, what happens then?  The mortgage lender will usually send the money to your lawyers trust account before 12:00 pm of closing day providing all conditions and paperwork has been completed.  The property will be registered in your name at the Land Registry Office as the new owner and once that is complete, you now own the property and will receive the keys.

This is a basic run down of the pieces in closing your property with a lawyer.  Never be afraid to ask your lawyer about items you do not understand as it is better to have clarity on the matter and know what you are paying for then guessing.