Definition
Funds disbursement (or "funding") is the final step of a mortgage transaction, where the lender transfers the loaned principal to the notary's account on the day (or eve) of deed signing. The notary uses these funds to pay the seller (purchase), discharge the outgoing lender (transfer/refinance), or execute planned distributions (cash-out refinance).
Usual preconditions: signing of all loan documents (commitment letter, disclosure forms), proof of home insurance, opening of payment account, prior mortgage registration at the Land Registry by the notary, and final lender confirmation. Any missing document can delay funding by 24-48 hours.
In Québec, funding is synchronized with notarial signing, generally at the notary's office. The buyer signs the deed, the notary confirms receipt of funds, keys are handed over and possession transferred (often at 1 PM or 5 PM by convention). Any funding delay can trigger a penalty or a renegotiation of dates.