When you’re buying or selling a home in Ontario, understanding the closing timeline is essential. One of the most common questions we get from buyers is: How long does it actually take to close on a house?
The answer can vary depending on several factors, but we’ll break down the typical process so you know what to expect, what happens on closing day and when funds officially change hands.
What Is a “Closing”?
Before we get into timelines, let’s clarify what a “closing” actually means.
The closing is the final step in a real estate transaction where ownership of the property officially transfers from the seller to the buyer on the date outlined in the Agreement of Purchase and Sale. It’s also when the buyer takes possession of the home and when the seller receives the proceeds from the sale.
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Average Closing Time in Ontario
In Ontario, the average closing time for a residential home is between 30 to 90 days from the date of a firm agreement. That being said, closings can happen as quickly as 2 weeks or extend out months or longer, depending on the situation.
Common Closing Timeframes
- 30 Days: Common for vacant properties or highly motivated sellers.
- 60 Days: Most typical; allows time for financing, legal work and moving arrangements by both parties.
- 90+ Days: More common for tenanted properties, new builds or when sellers need more time to relocate.
Buyers and sellers often negotiate the closing date during the offer stage and once it’s agreed upon in the contract, it becomes legally binding.
What Affects Closing Timelines?
Several factors can influence how long it takes to close a deal:
Mortgage Financing
One of the biggest variables is how quickly a buyer’s mortgage approval and funding can be arranged. A pre-approved buyer may be ready to close faster than one still navigating the mortgage application process.
Home Inspections and Conditions
If the purchase is conditional on a home inspection, financing or sale of the buyer’s current home, those conditions must be satisfied before the transaction becomes firm, and that can extend the timeline.
Lawyer Work and Title Search
Real estate lawyers play a crucial role in closing. They conduct title searches, review documents and coordinate the transfer of funds. Most lawyers require at least a couple of weeks’ notice to ensure all work is completed on time.
Occupancy or Tenancy
If the home is currently occupied by tenants or the sellers are still living in the home and need time to move, then the closing date may be pushed further out.
New Construction Homes
With new builds, the builder sets the closing date, and delays can happen. It’s not uncommon for closings on new builds to change several times depending on construction progress and city inspections.
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What Happens on Closing Day?
On closing day, a lot happens behind the scenes, mostly between the lawyers representing both the buyer and the seller :
- The buyer’s lawyer will transfer the balance of the purchase price (minus the deposit already paid) to the seller’s lawyer.
- The property is registered in the buyer’s name through Ontario’s land registration system.
- Once the registration is confirmed and funds are received, your lawyer will notify you that the keys are ready for pickup.
When Does the Seller Get Money After Closing in Ontario?
This is another frequent question: When do sellers actually receive their money after closing?
The answer is: typically on closing day, once the buyer’s lawyer transfers the funds and the property is registered. Most often, the funds are deposited directly into the seller’s bank account by their lawyer the same day, although in rare cases it may take until the next business day.
Tips to Ensure a Smooth Closing
Whether you’re buying or selling, here are a few ways to help make sure closing day goes off without a hitch:
- Stay in close contact with your lawyer as they coordinate most of the closing logistics.
- Don’t leave your mortgage paperwork to the last minute as delays in financing can derail a closing.
- Make sure all conditions are satisfied by the agreed upon deadline, this keeps everything moving toward closing.
- Set up utilities and home insurance well in advance as these often need to be active on closing day.
How Long Does it Take to Close on a House?
While 30 to 90 days is the average closing time on a house in Ontario, the timeline can vary based on individual circumstances. A good real estate agent will guide you through the process, keep things on track and work closely with your lawyer and lender to ensure everything is handled smoothly.
Have questions about buying or selling in the Ottawa area? We’ve helped thousands of families navigate the process and we’re happy to help you too! Call 613.909.8100 or reach us by email at info@PilonGroup.com.
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