Banking Info Collected by the Lawyer on Closing

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What Banking Information Does Your Lawyer Collect on Closing?

When you’re closing on your home purchase or refinance, your real estate lawyer needs specific banking information to ensure funds transfer correctly, clear your mortgage, and pay out any proceeds—all without delays on closing day.

Here’s a clear breakdown of what your lawyer may ask for and why it matters.

What Banking Info Lawyers Collect at Closing

Your lawyer may request the following banking details as part of the closing process:

1. Bank Account Information Your lawyer may ask for your bank account details (such as account, branch, and institution numbers). This is typically used to:

  • Deposit any surplus funds once the transaction completes (e.g., refund of leftover down payment or sale proceeds).
  • Provide information to your lender so they can set up mortgage payment withdrawals after closing.

2. Void Cheque or Direct Deposit Form

A void cheque or a direct deposit form from your bank shows your bank account details in a standard format. If you don’t use cheques, manybanks let you download this info from online banking.

3. Source of Funds Details (When Required)

In some cases, especially for compliance with anti-money-laundering rules, your lawyer might also ask where the funds are coming from—e.g., your savings, loan, or sale of another property. Lawyers must record and verify the source of funds when handling large transactions.

Why This Information Matters

Providing your banking details helps the lawyer and your lender complete a smooth closing:

  • Deposits get processed correctly — excess funds go to the right account.
  • Mortgage payments are set up properly — especially if payments will be withdrawn automatically.
  • Legal compliance — ensures your lawyer meets regulatory requirements for financial transactions.

Missing or incorrect banking info can delay fund transfers or closing, so it’s best to provide it as soon as your lawyer requests it.

How to Get Your Banking Info Ready

Here are some easy ways to gather what your lawyer needs:

  • Get a void cheque from your bank or online banking export.
  • Download a direct deposit form (many banks provide this digitally).
  • Confirm account details with your bank if anything is unclear.
  • Ask your lawyer exactly what form they prefer.

Bottom Line

Your lawyer collects banking information to make sure your closing day funds and mortgage setup go off without a hitch. Being prepared with everything—from a void cheque to accurate account details—helps the transaction wrap up smoothly and lets you focus on moving into your new home.

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