The short answer: The main cost to sell a house in Ontario is commission, in two parts: the buyer agent’s commission and your listing agent’s fee. Both are negotiable; in our experience, each is commonly around 2.5%, plus 13% HST. Add legal fees, mortgage costs, and prep and moving. Sellers don’t pay land transfer tax.
Sellers in Pickering, Ajax and Whitby ask me two things: “What’s my home worth?” and “What will I walk away with?” Here’s what to budget.
How much does it cost to sell a house in Ontario?
| Cost | What to expect |
|---|---|
| Buyer agent’s commission (cooperating brokerage) | Negotiable; commonly around 2.5% of the sale price in our experience, plus 13% HST |
| Listing agent’s fee | Negotiable; ours depends on the listing package you choose (commonly around 2.5% in our experience), plus 13% HST. See how we do things differently and all our listing packages. Request your digital Beyond Listing Booklet now for FREE. |
| Legal fees | Roughly $1,000 to $2,000 plus HST for a simple sale |
| Mortgage prepayment penalty | 3 months’ interest, or the IRD if higher (fixed rates) |
| Mortgage discharge fee | $0 to about $400 |
| Prep and moving | Up to you (staging is in most of our packages) |
| Land transfer tax | Paid by the buyer |
Our team typically spends $5,000 to $10,000 marketing an average home listing to make sure you as the seller don’t leave any of your hard-earned money on the table.
Commission: two parts, both negotiable
The Real Estate Council of Ontario (RECO) says commission isn’t set by RECO, the government or any board. Your listing agreement shows two separate amounts, the buyer brokerage’s commission and your listing brokerage’s fee, each plus 13% HST. Check the holdover clause too.
Our listing packages are built to help you sell for the best price, with staging in most, professional photos and video, and marketing like digital billboards (how we market your home). See how we do things differently and all our listing packages. Request your digital Beyond Listing Booklet now for FREE. Our Everyday Heroes and Good Neighbours programs give eligible clients cash back (conditions apply).
Your mortgage: plan ahead, avoid surprises
Discharge fees run $0 to about $400, says the Financial Consumer Agency of Canada (FCAC). Breaking a closed mortgage early usually costs three months’ interest, or on a fixed rate, the interest rate differential (IRD) if higher. Before you list, get a written estimate and ask about porting.
Prep, moving and closing adjustments
Budget for small repairs, cleaning, movers, and storage. Your lawyer prorates property taxes on closing, so prepaid taxes come back to you.
Taxes: what you don’t pay
Land transfer tax is the buyer’s bill, and resale homes carry no HST. A home that was always your principal residence is generally tax-free to sell (report it on Schedule 3).
A quick example
Illustration only, not a quote or market data: On a $1,000,000 Pickering sale, an assumed 2.5% buyer agent commission ($25,000) plus an assumed 2.5% listing fee ($25,000; ours varies by package) is $50,000. With 13% HST ($6,500), commission totals $56,500. Add $1,800 legal, a $5,062.50 mortgage penalty, a $300 discharge fee and $5,500 for prep and movers. Total: $69,162.50, about 6.9% of the price. Commission is negotiable in Ontario.
Selling in Toronto vs Durham Region
The core costs are the same across Ontario. Toronto sellers have one extra job: the City’s annual Vacant Home Tax declaration. An undeclared home is deemed vacant and taxed at 3% of its assessed value. Durham Region has no vacant home tax.
Who we help: AA Properties focuses on Durham Region (Pickering, Ajax, Whitby, Oshawa and beyond) and also serves the GTA, including Toronto and York Region.
Sell with AA Properties
Want your own numbers? Book a free home evaluation or a seller’s consultation and we’ll estimate your costs and proceeds. Or contact us, call or text 416-845-8433, or email alex@aaproperties.ca.
Frequently asked questions
Do sellers pay land transfer tax in Ontario?
No. In Ontario, land transfer tax is paid by the buyer when the sale closes. That includes Toronto’s municipal land transfer tax. You’ll only pay it again if you buy your next home.
Is real estate commission negotiable in Ontario?
Yes. RECO says commission isn’t fixed or approved by RECO, the government or any real estate board. In our experience, the buyer agent’s commission and the listing fee are each commonly around 2.5% plus HST; our listing fee depends on the package you choose.
How much is the penalty for breaking my mortgage when I sell?
A closed variable-rate mortgage usually costs three months’ interest. A closed fixed-rate mortgage usually costs the higher of that or the interest rate differential, which can be larger. Ask your lender for a written estimate.
Do I pay capital gains tax when I sell my home in Ontario?
Usually not, if the home was always your principal residence. You still report the sale to CRA on Schedule 3. Rentals, second properties and homes owned under a year are taxed differently.
How much should I budget to sell my house in Ontario?
It depends on your listing package, your mortgage and your move. Get a penalty estimate, a lawyer’s quote and a home evaluation. In our illustrative $1,000,000 example, total costs came to about 6.9% of the price.
Alex Antsyferov is a Broker and the founder of AA Properties, Crown Kingdom Realty Inc. General information only, not legal, tax or mortgage advice.
The information in this blog is deemed accurate but not guaranteed. It’s for general purposes only and isn’t legal, financial or tax advice.
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