As a first-time homebuyer, how much money do you really need for closing costs?

globalnews.ca:

This article is part of Global News’ Home School series, which gives Canadians the basics they need to know about the housing market that they never learned in school.Saving up for a downpayment and locking down the terms of a mortgage worth hundreds of thousands of dollars generally makes buying a home the biggest financial transactions of many Canadians’ lives.But less publicized are the associated closing costs that crop up before you get the keys.While these fees and taxes can be an afterthought, they can comprise thousands of dollars of extra costs. The good news for first-time buyers is that there are a few ways to get some of that money back.Global News spoke to legal experts in Canadian real estate to get a sense of what funds first-time buyers should be setting aside for closing costs as they near a purchase, and what details often get overlooked in the process of sealing the deal.“For a lot of the folks that we deal with, this is probably the largest transaction that they’re dealing with in their life,” says Dharam Dhillon, a B.C.

real estate lawyer and partner at Wilson Rasmussen LLP and at Keystone Law Group.Dhillon told Global News that it can be overwhelming for first-time buyers facing a mound of paperwork and fees that they’re wholly unfamiliar with. Starting the process of getting documents and funds in order as early as possible with a lawyer — at least two weeks before closing, he said, can help to ease the stress.“The sooner we can get involved in that process, the easier it is to ensure that there aren’t any surprises before closing.”Among the most significant costs you’ll be asked to pay upon closing are land-transfer taxes, which come up anytime a property is changing hands.The amount you’ll pay