What happens after Subjects are Removed?

When subjects in the purchase contract are satisfied and you agree to the purchase your new home, you are required to place a deposit on the property to remove subjects on the purchase agreement. The deposit forms part of the down payment amount. Once subjects are removed, the purchase agreement is now a binding contract.

It is extremely important you understand the mortgage commitment letter offered by your lender is based on your information at the time of mortgage submission. Any changes to your credit report or employment between mortgage submission and completing the purchase of your new property could jeopardize your financing commitment, and should be discussed with your mortgage broker. DO NOT FINANCE A NEW CAR during this period of time.

From Subject Removal to Completion Day you need to:

• Retain a lawyer or notary (if you haven’t already)
• Arrange home insurance
• Consolidate your down-payment
• Prepare for Completion day

Retain a Lawyer or Notary

Once subjects have been removed it is time to notify your mortgage broker on the lawyer or notary you are planning on using to complete the transaction. Your lawyer or notary will facilitate the mortgage signing, transfer property title, register the mortgage and register title insurance. Retain a lawyer or notary as soon as possible to ensure the process flows smoothly and to avoid any additional “rush order” charges.

Arrange Home Insurance

Lenders require home insurance to be setup on your new property before they will provide you with the funds to complete the mortgage transaction. To setup home insurance you will need to speak with an insurance agency/broker and let them know you’ve recently purchased a home and inform them of the completion date. They may ask you for a copy of the purchase contract. Once the insurance is setup, retain a copy of your home insurance as you will be required to bring it to the lawyer/notary office when you sign the transfer documents.

Consolidate Your Down-Payment

To keep the process moving smoothly, begin consolidating your down-payment into one account as early as possible. If you plan on using your RRSPs in the Home Buyers Plan you will be required to fill out the government form “T1036 – Home Buyers Plan Request to Withdraw Funds from RRSP.” Bring this form, and a copy of your purchase agreement to the institution that issued your RRSP’s so they can arrange the withdraw of these funds. It often takes multiple days to transfer funds out of your RRSP/TFSA to your designated account. Consolidating your down-payment into a single account allows for easy withdrawal on completion day.

Preparing for Your Completion Day

Your lawyer will be in contact with you during this process and inform you on what to bring for completing the transaction. You will be instructed to bring a copy of your home insurance, and a cashier’s cheque that will include the following amounts for:

• Down-payment (less the deposit amount)
• Legal fees
• Title insurance fee
• Property transfer tax amount
• Property tax / Utility bill adjustments

Completion Day

Finally, the day has come for you to complete your side of the transaction and take ownership of the property. On this day you will bring the requested cashier’s cheque to the lawyer or notary, and sign the required documents to finalize your side of the sale.

Under the guidance of your lawyer or notary you will be signing your mortgage documents, transferring the title of the property, registering the mortgage charge and registering the title insurance.

After all the required documents are signed and your fees are paid, your side of the transaction is complete!

Possession Day

This is the day you have worked so hard for. Today you pick up the keys to your new home!