What is the difference between closing and possession?

They often fall on the same day. Closing is the legal transfer of title and funds; possession is when you can physically take over the home. Sometimes they are negotiated separately.

Can a closing date be changed?

Yes, but only by mutual agreement between buyer and seller, usually documented through their lawyers. Delays in financing or legal work are common reasons for requesting an extension.

What happens if I cannot close on time?

Failing to close on a firm deal can put you in breach of contract, risking your deposit and possible damages. If you anticipate a delay, contact your lawyer early to negotiate an extension.

Mortgage Glossary

What is Closing Date?

The closing date is the day a property purchase is completed: title legally transfers from seller to buyer, the mortgage funds advance, and the balance of the purchase price is paid. It is set in the agreement of purchase and sale. On this date you typically receive the keys and take possession.

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Quick answer

Also known as: completion date, possession date

Key points

The closing date is when title transfers and the mortgage funds advance.
It is fixed in the agreement of purchase and sale.
The buyer pays the remaining balance plus closing costs on this date.
Property taxes and condo fees are prorated on the Statement of Adjustments.
Possession and keys are usually handed over on the closing date.

Closing Date explained

The closing date, sometimes called the completion or possession date, is when the transaction is finalized. Lawyers exchange documents and funds, the lender advances the mortgage, the buyer pays the remaining balance of the purchase price plus closing costs, and title is registered in the buyer's name. Property taxes, condo fees, and utilities are prorated between the parties on the Statement of Adjustments.

In the days leading up to closing, the buyer's lawyer conducts title searches, arranges title insurance if applicable, and prepares the funds. The mortgage lender advances the loan amount to the lawyer, who combines it with the buyer's down payment balance to pay the seller. Once everything clears, ownership transfers and the buyer takes possession.

What a Closing Date is for

The closing date exists to give all parties a fixed deadline to complete their obligations: financing, legal work, fund transfers, and document registration. It coordinates the lender, lawyers, and both buyer and seller so that money and ownership change hands in an orderly, legally recognized way.

How it can help you

A realistic closing date gives you time to finalize your mortgage, complete legal work, and arrange funds without scrambling. Locking in financing well ahead of closing avoids last-minute stress. Lenderoo shops 40+ lenders for free, helping you secure approval and a rate hold so your money is ready when the closing date arrives.

When it comes up

The closing date comes up when you negotiate your offer; you and the seller agree on a date, often 30 to 90 days out. In the meantime you finalize your mortgage, your lawyer handles the title and paperwork, and on the agreed day funds advance, title transfers, and you receive the keys.

Example: What happens on closing day

Suppose your agreement sets a closing date 60 days after your offer is accepted, on a $600,000 home with a $480,000 mortgage and $120,000 down (less your earlier deposit).

On the closing date, your lender advances the $480,000 to your lawyer, who adds your remaining down payment and closing-cost funds. The lawyer pays the seller, registers the title in your name, and the keys are released. Property taxes and any condo fees are prorated on the Statement of Adjustments so each side pays only their share.

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Questions & answers

Closing Date: frequently asked questions

Common questions Canadians ask about closing date.

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Related mortgage terms

Closing Costs

Fees and expenses paid when finalizing a real estate transaction

Read definition

Statement of Adjustments

A closing document that reconciles prepaid costs and credits between buyer and seller.

Read definition

Title

The legal record of who owns a property and any claims or charges registered against it.

Read definition

Deposit

Money submitted with an offer to show good faith, held in trust and credited toward the down payment.

Read definition

Agreement of Purchase and Sale (APS)

The legal contract that sets out the agreed terms of a home purchase between buyer and seller.

Read definition

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Find my best mortgage Explore the glossary

Mortgage Glossary

What is Closing Date?

Find my best mortgage Back to glossary

Quick answer

Also known as: completion date, possession date

Key points

The closing date is when title transfers and the mortgage funds advance.
It is fixed in the agreement of purchase and sale.
The buyer pays the remaining balance plus closing costs on this date.
Property taxes and condo fees are prorated on the Statement of Adjustments.
Possession and keys are usually handed over on the closing date.

Closing Date explained

What a Closing Date is for

How it can help you

When it comes up

Example: What happens on closing day

Suppose your agreement sets a closing date 60 days after your offer is accepted, on a $600,000 home with a $480,000 mortgage and $120,000 down (less your earlier deposit).

Have a question about closing date?

Lenderoo shops 40+ lenders for free and matches you with a mortgage professional who explains every term — and finds your best rate.

Get pre-approved free Talk to an expert

Questions & answers

Closing Date: frequently asked questions

Common questions Canadians ask about closing date.

Keep learning

Back to full glossary

Understand your mortgage with confidence

Lenderoo shops 40+ lenders for free and pairs you with a mortgage professional who keeps the jargon simple — and gets you a great rate.

Find my best mortgage Explore the glossary