How to Pay Your Closing Funds Balance in Ontario

As closing day approaches, most buyers ask the same thing: how do I actually get the remaining money to the right place, and by when? The answer involves your lawyer, your lender and the terms of your agreement of purchase and sale.

This article explains the general picture in Ontario, including what the balance is made of, why cash is restricted, and what to confirm with your lawyer ahead of time.

What makes up the closing balance

Your balance is not just the purchase price minus the deposit. It also includes closing costs, which the Financial Consumer Agency of Canada describes as one-time fees such as inspection fees, legal fees, property tax adjustments and title insurance. It suggests budgeting 1.5% to 4% of the purchase price for them.

• Land transfer tax, paid when the transfer is registered or before then.
• The electronic registration fee, which is $85.00 per instrument effective November 3, 2025, made up of a $71.55 statutory fee, an $11.90 ELRSA fee and $1.55 HST.
• Title insurance, which is not required by law in Ontario.
• Adjustments, such as property tax and utilities, which come from your agreement of purchase and sale and are set out by your lawyer.

Registration fees can change, so ask your lawyer for the current amount rather than relying on an older figure. How a deposit you already paid is treated on closing depends on the terms of your agreement of purchase and sale, so it is worth confirming with your lawyer. If a brokerage held it in trust, it first deducts the commission owing, and the balance owing to the seller may be released only when the transaction is completed, or with the mutual written consent of both parties.

When the money is due

Land transfer tax must be paid when the conveyance is tendered for registration, or before then. Because registration happens on closing day, your lawyer will normally need your funds in advance so they are in place when the transfer is submitted.

Registration is done electronically, and only authorized Teraview account holders and their registered users, such as lawyers and conveyancers, can create and submit the documents. That means the transfer is submitted through your lawyer's or conveyancer's account rather than by you.

The exact timing and any statement of adjustments are tied to your agreement and your lawyer's instructions, so confirm the date and time in writing.

Which payment methods work

A lawyer or paralegal in Ontario may not accept more than $7,500 in cash for any one client file, including on the purchase or sale of real property, under Law Society of Ontario By-Law 9, s. 4. In practice, closing funds are delivered by non-cash methods.

There are limited exceptions to the cap, such as cash received to pay a fine, a penalty or bail, or cash for fees and disbursements where any refund is also made in cash. Whether any exception could apply to your closing depends on your situation, so it is worth confirming with your lawyer.

Which specific non-cash methods your lawyer's office accepts, and any limits on amounts, vary, so ask for their instructions early. Large transfers sometimes need extra time with your bank, so do not leave this to the last day.

Refunds and credits that affect your balance

If you qualify for the first-time homebuyer land transfer tax refund of up to $4,000, it can be claimed at registration through the electronic land transfer tax affidavit. If it is not claimed then, you pay the tax and apply to the Ministry of Finance.

If you are buying a new home from a builder, other rebates and fees may apply. For instance, the Tarion enrolment fee is payable by the vendor, though vendors commonly pass it to buyers in the statement of adjustments. Whether that happens depends on your agreement.

What to do next

• Ask your lawyer for a written closing statement showing the exact balance.
• Confirm the deadline for delivering funds and the accepted payment methods.
• Arrange any mortgage advance and your own contribution well before closing day.
• Tell your bank about the large transfer so it is not delayed.
• Do not plan to pay in cash beyond the $7,500 cap.
• Keep records of every payment you make.

Frequently asked questions