Your mortgage is approved. What happens at the lawyer or notary now?
From mortgage instructions and closing funds to signing, completion and getting the keys, here’s what happens next and who handles what.
The Legal Stage
Mortgage approval is when the legal stage begins.
Once your mortgage is approved, the financing and legal sides still need to come together before the transaction can complete.
Your mortgage broker manages the financing. The lender provides the mortgage funds. Your lawyer or notary handles the legal work required to sign, register and complete the transaction.
Most people don’t need to know every detail. They do need to know what happens next, what they may be asked for, and who to call when a question comes up.
This guide explains the usual process, but your own lawyer or notary will always give you the final instructions for your specific transaction.
Mortgage Broker
Handles your approval, lender conditions, qualification, rate, mortgage terms and changes to the financing.
Lawyer or Notary
Handles the legal documents, title, registration, signing, closing funds and legal completion.
Sometimes a question touches both sides. That’s when the professionals involved may need to speak directly.
From Approval to Completion
Here’s what usually happens next.
The exact process can vary, but these are the main stages most buyers and homeowners move through.
Your legal file is opened
Once a purchase is firm, or while a refinance is being finalized, the legal office can begin setting up the file.
They may ask for your full legal name, contact information, occupation, identification details, address history and information about the realtor and mortgage broker involved.
Depending on the transaction and the office’s client-verification requirements, they may ask for additional information before the file can be completed.
Mortgage instructions arrive
When the mortgage is ready for the legal stage, the lender sends instructions directly to the lawyer or notary.
Those instructions set out what needs to be completed before the mortgage funds can be released.
The legal office prepares the file
They review title, prepare the mortgage and transaction documents, work through lender requirements and gather the information needed for completion.
Your final amount is calculated
Once the required figures and documents are available, the legal office can calculate your final amount to complete.
That amount may include your remaining down payment, legal fees, Property Transfer Tax if applicable, tax adjustments, strata adjustments and other closing costs.
You attend your signing appointment
Your lawyer or notary will tell you what identification, documents and funds to bring. They’ll review the legal documents with you and explain what you’re signing.
For many purchases, signing happens shortly before completion, often within the final few days.
The transaction completes
Once the required funds, documents and legal conditions are in place, the necessary registrations, transfers and payouts can be completed.
Timing
What can delay completion?
Most transactions move through normally, but a few outstanding items can create last-minute pressure.
Mortgage instructions
The legal office needs the lender’s instructions before it can complete the lender-specific legal work.
Outstanding lender conditions
If the lender is still waiting for required documents or confirmations, funding may not be ready to proceed.
Property insurance
Where the lender requires property insurance, coverage needs to be arranged and confirmed before funding. If you’re buying a strata property, the strata corporation’s building insurance doesn’t necessarily replace the coverage you need personally.
Closing funds
The funds you’re required to provide need to be available in the form and timing requested by your legal office.
Name or ID differences
If your legal name, identification, mortgage documents or purchase documents don’t match, flag it early so the professionals involved can review it.
Last-minute financing changes
Changes to employment, debt, credit, down payment or the mortgage itself may need lender review before completion.
Behind the Scenes
What might your legal office still be waiting for?
Sometimes the legal office has opened your file and everything is moving normally, even though there isn’t much for you to do yet.
A number of pieces can still be arriving from the lender, the property, another legal office or you.
From the Lender
Mortgage instructions and funding requirements
From the Transaction
Final figures and property information
For a Strata Property
Strata documents, fees and adjustments
From You
Identification, insurance and closing funds
One More Possibility
Sometimes money has to be held back temporarily.
Depending on the transaction, your lawyer or notary may need to deal with a holdback or another amount that can’t be released immediately.
A holdback can arise for different reasons, so there isn’t one rule that applies to every transaction. If one applies to your file, your legal professional will explain why it’s required, how much is being held and what needs to happen before the funds can be released.
Different Transactions
The legal file looks different depending on what you’re doing.
Buying a Home
Ownership is moving to you.
The legal office helps complete the transfer of ownership, register the mortgage, account for the closing funds and complete the transaction.
If you’re buying a strata property, additional documents, strata fees, deposits or adjustments may also need to be dealt with before completion.
What to know: completion and possession aren’t always the same date.
Refinancing
Old financing is being replaced.
The existing mortgage may need to be paid out and discharged, while the new mortgage is registered against the property.
If the lender requires certain debts to be paid from the refinance, the legal office may be instructed to handle those payouts before releasing the remaining proceeds.
Changing Ownership
Title and mortgage changes need to be coordinated.
This can come up with separation, family transfers or when someone is being added to or removed from ownership.
Removing someone from title doesn’t automatically remove them from the mortgage.
Important Dates
Completion and possession aren’t necessarily the same day.
Your Contract of Purchase and Sale will show both dates.
When planning movers, deliveries or other time-sensitive arrangements, make sure you know which date is which.
Completion
Legal.
The purchase completes financially and legally, and ownership changes.
Possession
Keys.
You take possession of the home and receive the keys.
While You Wait
Keep the final stretch running smoothly.
A lot can still be happening behind the scenes. Your job is mostly to stay available, keep the required funds accessible and avoid financial surprises before the mortgage funds.
- Watch your email and phone for requests from the legal office
- Respond quickly to lender and legal document requests
- Arrange any required property insurance
- Keep your closing funds accessible
- Allow time to move money from investments, another bank, an FHSA, RRSP or other source
- Understand any strata fees or deposits that may apply
- Check before taking on new debt
- Tell your broker if your employment or income changes
- Tell your broker if your down payment or financing changes
- Attend your signing appointment when the legal office schedules it
The final few days can feel busy even when everything is going normally.
Mortgage instructions, payout statements, legal documents and final figures can all arrive relatively close to completion. Stay available, respond when something is requested, and let the professionals involved know quickly if anything changes.
Be cautious with payment instructions.
If payment instructions change unexpectedly or something looks unusual, contact the legal office directly using contact information you already trust before sending money.
If anything changes with your income, employment, debt, credit, down payment or financing before completion, tell your mortgage broker as soon as possible.
Separation or Ownership Change?
The mortgage and title may both need a plan.
If one person wants to keep the home, or ownership is changing, it’s important to review the financing before legal changes are finalized.
Common Questions
A few things people often want to know before signing.
For a purchase, once the transaction is firm, it’s usually a good time to get the legal office involved. For a refinance, the legal professional can usually be chosen while the mortgage is being finalized.
What to Explore Next
Continue Exploring
Here are a few related answers, guides, and tools that may help you take the next step.
Mortgage Guide
From Accepted Offer to Getting the Keys
See the full journey from an accepted offer through conditions, legal completion and possession.
Mortgage Guide
What Happens After Conditions Are Removed?
Take a deeper look at the period between subject removal, legal signing and completion.
Mortgage Tool
Closing Costs Planner
Estimate some of the costs you may need to keep aside for completion.
Mortgage Guide
What Happens to the Mortgage When You Separate?
Understand the mortgage side when one person wants to keep the home or ownership is changing.
Personal Guidance
Still Have Questions?
If you’re buying, refinancing or changing the financing on a property and aren’t sure what happens next, I’m happy to help you sort out the mortgage side and explain where your lawyer or notary fits into the process.
Need a Second Opinion?
I can help you work through the numbers and the next step.
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