A First-Time Buyer’s Money Checklist From Offer to Closing

Key Takeaways

• Set aside money for the down payment, closing costs, short-term home expenses, and emergency savings separately.
• Identify every account that will fund the purchase before requesting a withdrawal or transfer.
• Keep your purchase agreement, identification, lender instructions, and account forms in one secure place.
• Confirm whether money will be withdrawn, transferred, or paid directly to your lawyer or closing professional.
• Check the tax treatment of every registered-account transaction before submitting paperwork.
• Allow time for investments to settle, documents to be reviewed, and funds to arrive.

Buying a first home involves more than arranging a down payment. Once an offer is accepted, buyers need a clear plan for deposits, legal costs, account withdrawals, documents, moving expenses, and a cash reserve for the first days of ownership.

If you intend to use a First Home Savings Account, review FHSA withdrawal forms and requirements well before your closing date. Questrade, a Canadian online brokerage and investment services provider that offers registered accounts, explains how FHSA redemption paperwork can relate to qualifying and non-qualifying withdrawals, supporting documents, purchase timelines, and tax treatment. Use that process guidance alongside the instructions issued by your own FHSA provider.

Build a Money Plan Before Closing

Start with the accepted offer, deposit amount, and expected closing date. Then list all known costs, including the remaining down payment, legal fees, home insurance, moving costs, utility setup, and any immediate repairs or purchases. Your lender or lawyer may also identify adjustments or amounts that must be paid before the transaction can close.

Do not treat every dollar in your accounts as available for the purchase. A cash buffer can help if a bill arrives earlier than expected, a move costs more than planned, or the new home needs an urgent repair. The goal is to arrive on closing day funded, organized, and still able to manage normal living expenses afterward.

Separate Home Funds From Everyday Cash

Create three simple buckets: funds required for closing, funds for the first few weeks in the home, and emergency savings that should remain untouched unless a true emergency occurs. A spreadsheet or notes document can track the account, current balance, intended use, release date, and paperwork needed for each amount.

If part of your down payment is invested, check how long it will take to sell and settle before you can withdraw it. This is especially important when money is held in stocks, ETFs, mutual funds, or other investments whose values can move before you sell. Avoid leaving those decisions until the final days before closing.

Review Registered Account Rules

Identify the source of every dollar: an FHSA, RRSP, TFSA, savings account, or non-registered investment account. Each has distinct contribution, withdrawal, transfer, and tax rules, so an action suitable for one may be costly or inappropriate for another.

An FHSA helps eligible first-time buyers save for a qualifying first home. Before using it for closing, confirm your transaction meets the requirements, including eligibility, a written purchase or building agreement, and plans to occupy the home as your principal residence. Consult CRA guidance to distinguish qualifying and taxable withdrawals from direct transfers.

Prepare Paperwork Early

Gather documents before you ask an institution to release funds. The exact requirements vary, but a practical file often includes:

• A signed purchase agreement or build agreement.
• Government-issued identification.
• Your account details and proof of account ownership, if requested.
• The expected closing or possession date.
• Instructions from your lender, lawyer, or closing professional.
• The financial institution’s own withdrawal, redemption, or transfer form.

Do not assume a form used by another bank or brokerage will be accepted. Ask your provider which document applies and whether it requires original signatures, secure upload, or additional proof of the purchase.

Request Funds the Right Way

A payment to your lawyer, a withdrawal to your bank account, and a direct transfer between registered accounts are different transactions. Confirm which route is required, who will receive the money, and whether the institution needs instructions from your lawyer before processing it.

Submit complete documents together whenever possible. Then request written confirmation of the amount, destination, and expected processing date. Keep copies of submitted forms, emails, transaction confirmations, and statements. Those records can be useful if a deadline changes or a tax slip arrives later.

Check the Tax Treatment

Never assume that a withdrawal connected to a home purchase is automatically tax-free. For an FHSA, qualifying and non-qualifying withdrawals receive different tax treatment. A non-qualifying withdrawal may be taxable and subject to withholding, while withholding tax does not necessarily represent the final tax owed for the year.

Also distinguish a withdrawal from a direct transfer. Moving money directly between eligible registered accounts can have different consequences than withdrawing it personally and contributing it elsewhere. Save all tax slips and transaction records with your annual tax documents.

Coordinate When Buying With a Spouse or Partner

Two buyers may contribute funds toward the same home, but each person should review their own account eligibility and paperwork. Keep separate records showing whose account supplied each amount, which form was used, and when the funds were released.

Extra care is sensible when one buyer has previously owned a home, has lived in a home owned by a spouse or common-law partner, or has a complicated ownership history. In those situations, a qualified tax professional or adviser can help assess personal circumstances before funds move.

Use a Closing-Day Timeline

1. When the offer is accepted: Confirm the closing date and estimate the total cash requirement.
2. Several weeks before closing: Identify accounts, sell investments if necessary, and gather documents.
3. Before requesting money: Confirm the correct forms, processing method, and delivery destination.
4. After approval: Verify the amount, arrival date, and any remaining action required from you.
5. At closing: Keep the final statement and proof that funds were delivered.
6. After closing: Store tax slips, account confirmations, and closing documents together.

Avoid Common Money Mistakes

• Waiting until the day before closing to start a withdrawal request.
• Forgetting that investments may need time to settle after a sale.
• Using emergency savings for planned closing expenses.
• Assuming an account provider, lender, or lawyer has reviewed every tax consequence.
• Failing to keep a signed purchase agreement and copies of submitted forms.
• Mixing a partner’s account records with your own.
• Changing the purchase plan without checking whether it affects a pending account withdrawal.

Final Checklist Before Closing

Strong closing preparation comes down to timing, accurate paperwork, and clear communication. Confirm where every dollar is coming from, leave room for costs beyond the down payment, and verify account rules before money is released. When your situation involves prior homeownership, joint ownership, excess contributions, or uncertain tax treatment, get individualized advice before finalizing the transaction.