How Much Does It Cost to Sell a House in Ontario?

If you're thinking about selling your home, one of the first financial questions is usually:

“How much is this actually going to cost me?”

The answer is important because your sale price is not the same thing as the amount of money you'll walk away with.

Depending on your transaction, selling costs can include:

• Real estate brokerage fees
• HST on applicable services
• Legal fees
• Mortgage discharge costs
• Mortgage prepayment penalties
• Repairs
• Staging
• Cleaning
• Moving expenses
• Property adjustments
• Other transaction-specific costs

The Financial Consumer Agency of Canada identifies legal fees and mortgage discharge costs among the standard costs sellers may encounter, with other possible expenses including real estate fees, repairs or renovations, inspection/appraisal expenses, moving, staging, cleaning and mortgage prepayment penalties.

So the better question isn't simply:

“What does it cost to sell?”

It's:

“After all of my selling costs and mortgage obligations, what am I likely to net?”

Let's break that down.

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1. Real Estate Brokerage Fees

For many sellers, brokerage remuneration is one of the largest selling expenses.

There is an important point homeowners should understand:

There is no government-mandated or RECO-approved standard commission rate in Ontario.

RECO states that the amount paid to a real estate brokerage is determined between the consumer and the brokerage. It can be structured as a fixed dollar amount, a percentage of the sale price, or a combination of both.

That means you should not assume:

“All Realtors charge the same percentage.”

They don't.

Instead, ask:

• What is the brokerage fee?
• How is it calculated?
• What services are included?
• Is buyer-side remuneration contemplated?
• Under what circumstances can the amount change?
• What marketing is included?
• Are there additional costs?

Your representation agreement should clearly set out what you've agreed to pay and how that amount is calculated.

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Is There a Standard Realtor Commission in Ontario?

No.

This is worth repeating because there is a lot of outdated and misleading information online.

RECO specifically states that the amount is not fixed or approved by RECO, government, a real estate association or a real estate board.

So when you see an article saying:

“The standard Ontario commission is X%”

treat that claim carefully.

Fees and service arrangements can vary.

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What About the Buyer's Brokerage?

This area also requires more nuance than older online articles sometimes suggest.

Seller and buyer brokerage remuneration arrangements depend on the applicable representation agreements and transaction structure.

RECO's current consumer guide explains that a seller representation agreement should identify:

• What the seller pays their own brokerage
• What, if anything, the seller agrees to pay to compensate the buyer for the buyer brokerage's fees
• How those amounts may change in certain circumstances

So Fona: do not publish old language suggesting every seller automatically pays a fixed percentage to the buyer's agent.

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2. HST on Real Estate Services

Real estate brokerage services are generally taxable services for HST purposes.

That means when evaluating brokerage costs, sellers should understand whether the quoted amount is:

before HST

or

including HST.

This matters when you're calculating net proceeds.

For example, if a brokerage remuneration amount is quoted before tax, applicable HST would be added.

Your listing agreement should make the compensation structure clear.

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3. Legal Fees

Ontario sellers normally retain a real estate lawyer to complete the legal closing.

The lawyer's work may include matters such as:

• Reviewing the transaction
• Preparing closing documents
• Dealing with title
• Obtaining mortgage payout information
• Completing adjustments
• Discharging applicable registrations
• Receiving and distributing closing funds

Legal fees vary by lawyer and by complexity.

So rather than publishing a generic number that could quickly become inaccurate, obtain a written quote from your lawyer.

The Financial Consumer Agency of Canada lists legal fees as a standard home-selling cost.

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4. Mortgage Discharge Fee

If your home has a registered mortgage, it normally needs to be discharged from title when the property is sold.

FCAC explains that a mortgage discharge removes the lender's rights from the property and that a discharge is required when selling a mortgaged property.

Your lender may charge a discharge fee.

The exact amount depends on:

• Your lender
• Mortgage terms
• Applicable provincial rules
• Other administrative costs

FCAC notes that where discharge fees are not otherwise capped, lender charges can range from no fee to several hundred dollars.

The important thing is to ask your lender for the actual payout and discharge information, rather than estimating.

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5. Mortgage Prepayment Penalty

This can be one of the biggest surprise costs for sellers.

If you sell your home before the end of your mortgage term, your lender may charge a prepayment penalty.

FCAC specifically notes that paying off your entire mortgage before the end of its term — including because you sold the property — can trigger a prepayment charge.

The amount depends heavily on your mortgage contract.

It may be influenced by:

• Fixed vs variable rate
• Remaining term
• Outstanding mortgage balance
• Interest rate
• Lender calculation method
• Available prepayment privileges

And these penalties can sometimes be thousands of dollars.

Before listing, ask your lender:

“What would my mortgage payout penalty be if I sold and closed on approximately [date]?”

Get the answer directly from the lender.

Don't guess.

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Can I Avoid a Mortgage Penalty?

Possibly, depending on your mortgage terms.

Some mortgages may allow:

• Porting
• Prepayment privileges
• Blend-and-extend options
• Other lender-specific arrangements

FCAC notes that some lenders may offer a blend-and-extend option that can allow borrowers to extend a mortgage term without paying a prepayment penalty, although administrative fees may apply.

Whether any of those options make sense for you is a financing question to discuss directly with your lender or mortgage professional.

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6. Mortgage Balance

This isn't technically a “selling expense,” but it has the biggest impact on how much money you actually receive.

Suppose your property sells for:

$1,000,000

and you owe:

$500,000

on your mortgage.

That $500,000 must generally be addressed through closing.

So your gross equity isn't the same thing as your final cash proceeds.

This is why I like preparing the sale around a net proceeds estimate, rather than focusing only on the headline sale price.

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7. Repairs Before Selling

Repairs are optional in some cases and necessary in others.

Potential pre-listing repairs might include:

• Plumbing fixes
• Electrical repairs
• Drywall
• Paint
• Caulking
• Trim
• Doors
• Hardware
• Lighting
• Exterior repairs
• Landscaping

The mistake is assuming you need to fix everything.

You don't.

Before spending substantial money, determine:

Will this repair improve buyer confidence or saleability enough to justify the cost?

Sometimes yes.

Sometimes no.

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8. Renovations Before Selling

Renovations are an entirely different category from minor repairs.

Potential projects might include:

• Kitchen
• Bathroom
• Flooring
• Basement
• Exterior
• Landscaping

But don't assume:

$50,000 renovation = $50,000 increase in sale price.

Return depends on:

• Neighbourhood
• Buyer expectations
• Existing condition
• Design choices
• Timing
• Market conditions
• Quality of workmanship

If you're renovating specifically because you plan to sell, speak with your Realtor before you begin.

You may save yourself a lot of money.

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9. Staging

Staging can range from:

• Editing existing furniture
• Rearranging rooms
• Partial staging
• Accessory staging
• Full vacant-property staging

Costs vary significantly depending on:

• Property size
• Number of rooms
• Furniture required
• Rental duration
• Staging company

Some brokerage marketing packages may include certain staging services while others may not.

Ask exactly what's included.

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10. Professional Cleaning

Professional cleaning is often a relatively modest expense compared with the overall transaction, but presentation matters.

Potential services can include:

• Deep cleaning
• Appliances
• Windows
• Carpet cleaning
• Grout
• Exterior windows
• Move-out cleaning

The objective is not simply:

“It's clean.”

You want buyers to perceive the home as cared for.

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11. Photography & Marketing

Depending on your agreement with your brokerage, services such as:

• Professional photography
• Floor plans
• Video
• Drone
• Social media
• Digital advertising
• Feature sheets
• Property website
• Staging consultation

may be included within the brokerage's service package or treated differently.

Ask before signing.

A seller should understand exactly what is included in the listing service rather than discovering later that certain marketing components cost extra.

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12. Moving Costs

The sale doesn't end when the house sells.

You still have to move.

Depending on your situation, moving costs may include:

• Movers
• Truck rental
• Packing supplies
• Storage
• Temporary accommodation
• Cleaning
• Utility setup
• Travel
• Pet arrangements

For a local move, these may be modest.

For a major relocation, they can become significant.

FCAC includes moving costs among the potential expenses homeowners should plan for when selling.

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13. Storage

If you're:

• Staging
• Downsizing
• Moving between closings
• Renovating
• Relocating

you may need temporary storage.

This is one of those small line items that can add up when used for several months.

Include it in the budget.

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14. Property Tax Adjustments

On closing, certain property-related amounts may be adjusted between buyer and seller depending on what has already been paid and the closing date.

For example, if you've prepaid property taxes for a period beyond your ownership, the lawyer may address the applicable adjustment in the closing statement.

Your lawyer prepares and explains the transaction-specific adjustments.

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15. Condominium Adjustments

If you're selling a condominium, there can also be closing adjustments involving prepaid common expenses and other applicable amounts.

Again, your lawyer will calculate these based on the actual transaction.

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16. Status Certificate Costs

For Ontario condominium transactions, the status certificate can become part of the selling process depending on the transaction strategy.

Who orders it and who pays may depend on the circumstances.

If you're planning a condo sale, discuss this with your Realtor and lawyer before listing.

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17. Capital Gains Tax

For many homeowners selling their principal residence, Canada's principal residence rules may be relevant.

But tax circumstances differ dramatically.

Examples include:

• Investment property
• Rental property
• Partial rental use
• Business use
• Multiple properties
• Change in use
• Non-resident status
• Inherited property

A Realtor should not determine your tax liability.

If your sale may have tax implications, speak with a qualified accountant or tax professional before selling.

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18. What About HST on the Sale Price?

For a typical resale residential transaction, you should not assume that HST is simply added to the sale price in the same way it is added to a brokerage service fee.

HST treatment can become more complicated for:

• New construction
• Substantially renovated properties
• Commercial properties
• Certain rental/business situations
• Vacant land
• Other special circumstances

If there is any uncertainty about HST treatment on the property itself, get legal and tax advice specific to the transaction.

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Example: Ontario Seller Net-Proceeds Calculation

Here's a hypothetical example only.

Suppose a homeowner sells for:

SALE PRICE

$1,000,000

Then suppose the seller has:

MORTGAGE PAYOUT

$500,000

BROKERAGE / MARKETING COSTS

Transaction-specific

HST ON APPLICABLE SERVICES

Transaction-specific

LEGAL & DISCHARGE COSTS

Transaction-specific

MORTGAGE PENALTY

Transaction-specific

OTHER COSTS

Repairs / moving / staging etc.

Then:

Sale Price

− Mortgage

− Selling Costs

− Other Applicable Amounts

ESTIMATED NET PROCEEDS

Notice that I haven't filled in fake “standard” percentages.

That's intentional.

The purpose of the exercise is to calculate the actual costs attached to your transaction.

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Why Net Proceeds Matter More Than Sale Price

Imagine two selling strategies.

OPTION A

Sale Price: $1,025,000

But you spend:

• Significant renovations
• Additional carrying costs
• Months of extra mortgage payments
• Storage
• Staging

OPTION B

Sale Price: $1,000,000

But the home sells with:

• Minimal improvements
• Lower carrying costs
• Faster timeline

Which strategy made you more money?

You can't answer that from the sale price alone.

You need to compare:

NET RESULT.

That's why I don't believe sellers should focus exclusively on:

“How high can we sell?”

The more useful question is:

“Which strategy produces the strongest overall outcome for me?”

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How Much Will I Walk Away With After Selling My House?

To estimate this properly, I want to know:

• Likely property value
• Mortgage balance
• Mortgage payout/penalty
• Brokerage agreement
• Legal estimate
• Preparation costs
• Moving expenses
• Any applicable tax considerations

Then we can build a preliminary seller net sheet.

Your lawyer, lender and tax professional should verify the items within their respective scope before you rely on the final numbers.

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Before You List: Get These 4 Numbers

Before selling, I recommend knowing:

1. Estimated Market Value

What could the property realistically sell for?

2. Mortgage Payout

What will actually be owed on closing?

3. Selling Costs

Brokerage, legal and other anticipated expenses.

4. Approximate Net Proceeds

What's likely left after the transaction?

Once you know those numbers, planning your next move becomes much easier.

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What Is Your Ontario Home Worth?

Selling costs only make sense in the context of your property's value.

If your home is worth:

$800,000

the numbers look one way.

If it's worth:

$1.4 million

they look very different.

If your property is in Georgetown, we've created a dedicated guide explaining how we determine that value.

READ NEXT:

How Much Is My House Worth in Georgetown, Ontario?

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Selling in Georgetown?

We also created a complete Georgetown seller guide covering:

• Pricing
• Preparation
• Renovations
• Staging
• Marketing
• Offers
• Conditions
• Closing

COMPLETE GUIDE:

Selling a House in Georgetown, Ontario

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Frequently Asked Questions About Ontario Home-Selling Costs

How much does it cost to sell a house in Ontario?

There is no single universal amount. Costs may include brokerage remuneration, HST on applicable services, legal fees, mortgage discharge costs, possible mortgage penalties, repairs, staging, cleaning and moving expenses.

What is the standard Realtor commission in Ontario?

There is no government- or RECO-approved standard rate. The consumer and brokerage determine the amount and structure of remuneration in their agreement.

Are Realtor fees negotiable in Ontario?

The amount and terms of brokerage remuneration are established between the consumer and brokerage rather than set by government or RECO.

Do sellers pay HST on Realtor services?

Applicable HST generally applies to taxable real estate brokerage services. Confirm how HST is shown in your brokerage agreement and seller-cost estimate.

Do I pay a mortgage penalty when I sell?

Possibly. If selling requires you to pay out your mortgage before the end of its term, your lender may charge a prepayment penalty. The amount depends on the mortgage contract.

What is a mortgage discharge fee?

A mortgage discharge removes the lender's registered rights from the property after the mortgage obligation is satisfied. Lenders may charge a discharge fee depending on the mortgage and applicable rules.

How much are legal fees when selling a home?

Legal fees vary by lawyer and transaction complexity. Get a written quote directly from the lawyer handling your closing rather than relying on a generic online estimate.

Do I need to renovate before selling?

Not necessarily. Have the home evaluated before spending significantly on renovations intended specifically for resale.

Do I have to stage my home?

No universal rule requires staging. Whether it makes sense depends on the property, existing furniture, target buyer and marketing strategy.

How do I calculate how much money I'll receive after selling?

Begin with the expected sale price and subtract the mortgage payout, applicable selling expenses and other transaction-specific amounts. Your lawyer's final statement will ultimately determine the actual closing figures.

Want to Know What You Would Actually Net?

If you're considering selling, don't stop at:

“My neighbour sold for $1 million.”

Let's figure out what the numbers may look like for you.

We can start with:

Estimated Home Value

↓

Mortgage Position

↓

Estimated Selling Costs

↓

YOUR APPROXIMATE NET PROCEEDS

Then you can make a much better decision about whether to:

• Sell now
• Buy another home
• Downsize
• Relocate
• Invest
• Wait

My team and I work throughout Georgetown, Halton Hills and surrounding Ontario communities, and we can help you understand the real-estate side of the numbers while your lawyer, lender and tax professionals advise on their respective areas.

Ana Bastas
Founder & Team Lead
Ana Bastas Real Estate Team
Real Broker Ontario Ltd., Brokerage
ABR® | SRS® | SRES® | RENE®

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