The cheque you deposit after selling is the sale price minus a specific, knowable list of costs. None of them should surprise you at closing, because every one can be quoted in advance. Here are the categories. We do not publish invented averages — each figure below comes from a document you can request before you list.
Real estate commission — negotiable, in writing
Commission is the largest selling cost for most Ontario sellers, and the first thing to know about it is that it is negotiable. There is no fixed rate, no standard rate, and no rate set by law, a real estate board, or RECO. Whatever you agree to appears in your listing agreement, which under TRESA must state compensation clearly.
The structure matters as much as the total. A listing agreement typically covers both the listing brokerage’s compensation and the amount offered to the brokerage representing your buyer. Ask for the full breakdown: the total, the split, and what happens if the buyer is unrepresented. Ask what services the number includes — photography, floor plans, marketing, staging consultation — and get the answers in the agreement, not in conversation.
HST on commission
Real estate commission attracts HST at 13% in Ontario. This catches sellers who budget the commission figure but not the tax on top of it. Whatever commission you negotiate, add 13% to model your true cost. Note the sale of a used residential home itself is generally HST-exempt — the tax applies to the service fees around the sale, not the house.
Legal fees and disbursements
A lawyer closes your sale: reviewing the agreement, answering title requisitions, preparing the deed, discharging the mortgage, and disbursing funds. As with a purchase, the bill is fees plus disbursements plus HST. Selling is usually less legal work than buying, and quotes are easy to get in advance — ask for one that itemizes everything.
Mortgage discharge and prepayment penalty
If your mortgage is not fully open or portable into your next purchase, breaking it has a price with two parts. The discharge fee is an administrative charge from your lender plus a registration cost — modest and predictable. The prepayment penalty is the one to respect: on a closed mortgage broken mid-term, lenders commonly charge the greater of three months’ interest or an interest rate differential, and the IRD calculation varies by lender and rate environment. The only reliable figure is the one on a written payout statement from your lender. Request it before you list, not after you have accepted an offer. If you are buying again, ask about porting — carrying your existing mortgage to the new property can reduce or eliminate the penalty.
Preparation and staging
The discretionary category: repairs, paint, cleaning, junk removal, staging. Costs range from near zero to substantial depending on the property’s condition and the strategy you and your agent choose. The discipline is to spend only on what shows up in photographs and first impressions — our staging guide covers what tends to matter and what does not.
Adjustments and small items
The statement of adjustments reconciles prepaid items between you and the buyer at closing — property taxes and, for condos, common expenses — and can run in either direction. Condo sellers often also cover the status certificate, which is capped at $100 under the Condominium Act. Add moving costs, and for most sellers the list is complete.
Build your own number
Every figure above is quotable in advance: commission from your listing agreement, HST by arithmetic, legal fees from a quote, the penalty from a payout statement, prep from your own plan. An afternoon of phone calls turns “what will selling cost?” from a guess into a line-item budget — and your net proceeds into a number you can plan a purchase around.
The other half of the net-proceeds equation is what the home sells for. Start at /home-value/. Estimates are ranges. A licensed District agent delivers the real number within 24 hours.