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

When you're planning a move, you need to know what you'll actually walk away with, not just your sale price. Here's a clear breakdown of the costs of selling a home in Ontario, so there are no surprises on closing day.

1. Real estate commission

This is the biggest cost for most sellers. Commission in Ontario is negotiable and set out in your listing agreement. It usually covers both your listing brokerage and the buyer's brokerage, and HST (13%) is charged on top.

More important than the percentage is what you get for it. A good listing package should include accurate pricing, staging, professional photos and video, strong online marketing, and someone who will negotiate hard for you. A lower fee that leads to a lower sale price, or a home that sits, isn't a savings. Ask every agent you interview exactly what's included.

2. Legal fees

You'll need a real estate lawyer to close the sale. For a typical resale, expect roughly $1,000 to $1,800 plus HST and disbursements. Your lawyer handles the deed transfer, pays out your mortgage and sends you your proceeds.

3. Mortgage payout and penalties

If you're breaking your mortgage before the end of its term, you may owe a prepayment penalty. On a variable mortgage it's usually three months' interest; on a fixed mortgage it can be the greater of three months' interest or the "interest rate differential," which can be thousands of dollars. Call your lender early and ask for a payout statement. If you're buying another home, ask whether you can port your mortgage to avoid the penalty. There's often a small discharge fee as well.

4. Getting the home ready

• Repairs and touch-ups: fixing the little things buyers notice, like dripping taps, scuffed paint and burnt-out bulbs.
• Cleaning: a professional deep clean before photos is worth every dollar.
• Staging: staged homes photograph better and typically sell faster. Depending on the package, staging may already be included in your agent's services.
• Pre-listing inspection (optional): around $400 to $600, and it can help buyers feel confident enough to go firm.

5. Moving and overlap costs

Movers, storage, utility transfers and possibly bridge financing if you're buying before your sale closes. Plan these into your timeline.

6. Adjustments on closing

If you've prepaid property taxes or have a rental water heater or furnace, your lawyer will adjust for these on closing. Prepaid taxes usually mean money back to you; rental equipment contracts may need to be bought out or assumed by the buyer.

What sellers don't pay

Good news: sellers don't pay land transfer tax in Ontario. That's on the buyer. And if the home is your principal residence, you generally don't pay capital gains tax on the profit (check with your accountant if you've rented out part of the home or own more than one property).

A quick example

On a $700,000 sale, after commission plus HST, legal fees, a modest prep budget and moving, many sellers net somewhere around 92% to 95% of the sale price before paying off their mortgage. Your number depends on your agreement and situation.

Want to know your exact numbers?

I'll put together a seller net sheet showing what you'd walk away with at different sale prices. Call or text 519-807-8485 or email ryan@soldbyschinker.com.

General information only, not legal, tax or financial advice. Confirm costs with your lawyer, lender and accountant.