Sellers in Ontario typically budget roughly 4% to 7% of the sale price in total selling costs. Most of that is real estate commission plus 13% HST on the commission. Add legal fees (often $1,000 to $2,500), any mortgage discharge fee or prepayment penalty, and optional prep costs. Ontario has no land transfer tax for sellers.
What are the main costs of selling a house in Ontario?
- Real estate commission: usually the largest cost. It is negotiable and set in your listing agreement, and in most listings it covers both the listing and buyer's brokerages.
- HST on the commission: 13% is added on top of the commission. A resale home sale itself is generally not subject to HST.
- Legal fees: your real estate lawyer handles the transfer, mortgage discharge and closing adjustments. A common planning range is $1,000 to $2,500.
- Mortgage discharge fee: a lender administration fee, often a few hundred dollars.
- Mortgage prepayment penalty: only if you pay off a closed mortgage before the term ends. It can be small or substantial, so ask your lender for a figure before you list.
- Preparing the home: optional costs such as cleaning, minor repairs, painting, staging and photography.
- Adjustments: property tax and utilities are prorated to the closing date, so you may be credited or charged a small amount.
How much is commission plus HST on a typical Waterloo Region sale?
Commission is negotiable, so the table below is an illustration at two example rates, not a quote. HST is 13% of the commission.
| Sale price | Commission at 4% | Commission at 5% |
|---|---|---|
| $700,000 | $28,000 + $3,640 HST = $31,640 | $35,000 + $4,550 HST = $39,550 |
| $800,000 | $32,000 + $4,160 HST = $36,160 | $40,000 + $5,200 HST = $45,200 |
Ask every agent you interview for the full commission in writing, the split offered to the buyer's brokerage, and what services and marketing are included.
What would I actually walk away with?
Here is a worked example on a $700,000 sale, assuming a 5% commission, $1,500 in legal fees, a $300 discharge fee and a hypothetical $400,000 mortgage payout:
| Item | Amount |
|---|---|
| Sale price | $700,000 |
| Commission plus HST | −$39,550 |
| Legal fees | −$1,500 |
| Mortgage discharge fee | −$300 |
| Mortgage payout (example) | −$400,000 |
| Estimated proceeds before prep, moving and any penalty | $258,650 |
Your numbers will differ. Prep costs, a prepayment penalty and moving costs come on top. Ask Mario for a net-proceeds estimate before you decide on a price or a date.
Do sellers pay land transfer tax or capital gains tax?
Sellers do not pay Ontario land transfer tax; that is paid by the buyer. Capital gains tax usually does not apply to the sale of your principal residence, because of the principal residence exemption. You still must report the sale on your tax return (Schedule 3 and Form T2091). A rental property, a second property or a home that was not your principal residence for every year you owned it can create a taxable gain. Confirm your situation with an accountant.
How can I keep selling costs down without hurting the sale price?
- Spend on what buyers see first: deep cleaning, decluttering, fresh paint, good photos. Skip big renovations right before listing unless they fix a clear defect.
- Get a mortgage payout statement early so there are no surprises on the closing date.
- Price accurately from day one. A home that sits and takes price cuts often costs more than any fee you saved.
- Compare agents on net result and services, not only on the commission rate.
Related guides
General information, not legal, tax or financial advice. Rates, limits and rules change; confirm with your lawyer, lender or accountant.
What it costs to sell a house in Kitchener-Waterloo: frequently asked questions
Many sellers budget roughly 4% to 7% of the sale price in total, most of it commission plus 13% HST on the commission, with legal fees, mortgage costs and any prep work on top.
Yes. Commission is set in the listing agreement between you and the brokerage. Ask for the total rate, the portion offered to the buyer's brokerage, and the services included.
You pay 13% HST on the real estate commission. The sale of a resale home is generally not subject to HST.
No. Land transfer tax is paid by the buyer.
Yes. Even when the gain is exempt as your principal residence, you report the sale on Schedule 3 and file Form T2091 with your tax return.
Questions about your situation?
Mario gives straight answers on buying, selling and investing across Kitchener, Waterloo and Cambridge.