Payment Timeline From Offer to Closing: When Each Dollar Is Due (2026)
Money leaves your account in five waves, from the 24-hour deposit to the final wire a day or two before closing. Every payment between offer and closing.
Money leaves your account in five waves. The deposit within about 24 hours of acceptance. Inspection and appraisal fees during the condition period. A lawyer's retainer when you engage them. The large one, balance of down payment plus every closing cost, wired to your lawyer's trust account one to two business days before closing. Then nothing until the first mortgage payment, roughly one month after closing, with property tax and utilities beginning on their own cycles. For a $700,000 Ottawa purchase closing in 60 days, that is $35,000 on day 1, about $1,000 in week 1, and about $46,000 on day 58.
Figures come from the CostToClose guided buying flow.
The timeline for a $700,000 purchase, 10% down, first-time buyer, Ontario
| Day | Event | Payment |
|---|---|---|
| 0 | Offer accepted, conditional on financing and inspection (5 business days) | — |
| 1 | Deposit due to listing brokerage | $35,000 (5%) by bank draft |
| 2–5 | Home inspection; lender orders appraisal; you send documents | Inspection $550; appraisal $0–$400 (often lender-paid on insured deals) |
| 5 | Conditions waived — the deal is firm | — |
| 7 | Engage lawyer | Retainer $0–$500 (some firms bill everything at closing) |
| 30 | Arrange home insurance effective on closing day; lender needs the binder | First month's premium ≈ $130 |
| 50 | Lawyer sends statement of adjustments and trust ledger | — |
| 57–58 | Wire closing funds to lawyer's trust account | Balance of down payment $35,000 + land transfer tax after refund $6,475 + PST on CMHC $1,562 + legal and title $2,225 + adjustments $780 = ≈ $46,042 |
| 60 | Closing: keys released after registration, usually early afternoon | — |
| 60 | Movers, locks, utility setups | Your own budget |
| ≈ 90 | First mortgage payment (interest adjustment to the 1st, then monthly) | $3,591 |
| Varies | Property tax on the municipality's instalment schedule; condo fees on the 1st | Per bill |
Computed with the CostToClose calculator, 14 September 2026.
Points that trip people
- The interest adjustment date. Most lenders start the payment cycle on the 1st of the month. Closing on the 15th means an "interest adjustment" of two weeks' interest deducted from the mortgage advance, and the first full payment on the 1st of the month after next.
- Wire, not draft, for closing funds. Lawyers increasingly require wires for anything over $25,000; banks can take a day to process. Send two days ahead.
- Do not move money around between approval and closing. Large transfers between accounts generate lender questions; new debt can void the approval.
- Property tax. You reimburse the seller's prepaid share at closing (in the adjustments), then pay the municipality directly on its schedule, or through the lender, if they collect it with the mortgage.
What changes the timeline
- Condo: status certificate condition replaces inspection; condo fee adjustment appears at closing.
- New construction: deposits in stages over months; occupancy fees before final closing; adjustments larger.
- Quebec: welcome tax billed two to three months after closing, a sixth wave.
- Shorter closings (30 days) compress everything; the mortgage must be fully approved within the condition period.
Frequently asked questions
When is the down payment due when buying a house?
The deposit portion within about 24 hours of acceptance; the balance one to two business days before closing, wired to your lawyer.
When do I pay closing costs?
With the balance of the down payment, one to two business days before closing, into the lawyer's trust account.
When is the first mortgage payment after closing?
Usually on the first payment date after the interest adjustment date — about four to six weeks after closing.
Do I pay property tax at closing?
You reimburse the seller for any tax they prepaid past the closing date; then you pay the municipality on its regular instalments.
Can the deposit be paid at closing instead?
Only if the offer says so. Standard forms require it within 24 hours of acceptance.
Sources
- Ontario Real Estate Association Form 100 — deposit and closing provisions — checked 14 Sept 2026
- Law Society of Ontario, real estate closing procedures — checked 14 Sept 2026
- Financial Consumer Agency of Canada, first mortgage payment and interest adjustment — checked 14 Sept 2026
This guide is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It is not legal, tax, or mortgage advice. Rules and rates change; confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before relying on them.