What Does It Cost to Sell a House in Canada? (2026, With Net Proceeds Example)
Selling a $650,000 Ontario house costs $40,800: 5% commission ($32,500) plus HST, legal fees, staging and discharge. Net after a $380,000 mortgage: $229,000.
Roughly 5% to 7% of the sale price, most of it real estate commission. On a $650,000 Ontario sale: commission of about $32,500 (5% total, split between the two agents), HST on the commission of $4,225, legal fees of $1,500, a mortgage discharge fee of $350, and staging and prep of $2,200, about $40,775 before any penalty for breaking the mortgage early. With a $380,000 mortgage balance, the seller walks away with about $229,225.
Figures come from the CostToClose net proceeds calculator.
Net proceeds: $650,000 sale, Ontario
| Item | Amount | Rule or estimate |
|---|---|---|
| Sale price | $650,000 | — |
| Commission (2.5% listing + 2.5% buyer's agent) | −$32,500 | Estimate — negotiable |
| HST on commission (13%) | −$4,225 | Rule |
| Legal fees and disbursements | −$1,500 | Estimate |
| Staging and prep | −$2,200 | Estimate |
| Mortgage discharge fee | −$350 | Estimate |
| Mortgage balance paid out | −$380,000 | — |
| Net proceeds | $229,225 |
Run through the CostToClose calculator, 14 September 2026. Add repairs, pre-listing inspection and moving if you incur them beyond the staging estimate above; subtract any prepaid property tax the buyer reimburses you on the statement of adjustments. Reproduce this.
Commission
There is no legal or standard rate in Canada. Common structures: 4% to 5% total in Ontario and Quebec; 7% on the first $100,000 and 2.5% to 3% on the balance in BC and Alberta; flat-fee and discount brokerages at $5,000 to $15,000. The listing agreement sets both the listing side and what is offered to the buyer's agent. See Is real estate commission negotiable?.
Tax on commission is a rule, not a negotiation: HST in Ontario (13%) and the Atlantic provinces (15%), GST plus PST in Quebec (14.975%), GST only (5%) in BC, Alberta, Saskatchewan and Manitoba.
The mortgage penalty
If you sell before your term ends and do not port the mortgage to a new purchase, the lender charges a prepayment penalty: three months' interest on a variable mortgage, or the greater of three months' interest and the interest rate differential on a fixed one. On a $380,000 balance at 4.2% with two years left, three months' interest is about $4,000; an IRD at a big bank can be $10,000 to $15,000. This is often the second-largest selling cost and the least expected. See Mortgage break penalty explained.
Everything else
- Legal fees: $800 to $1,500 for a sale, usually less than a purchase.
- Discharge fee: $200 to $400 charged by the lender to release the mortgage.
- Staging and photography: the calculator assumes $2,200; ranges from $0 (sometimes bundled into a full-service commission) to $5,000.
- Pre-listing repairs: whatever the inspection would find.
- Capital gains tax: none on a principal residence, reported on your return; 50% inclusion on a rental or second property.
- Condo status certificate: $100, paid by the seller in most provinces.
What changes the number
- Commission rate. One percentage point on $650,000 is $6,500 plus tax.
- Porting the mortgage to the new home avoids the penalty.
- Selling in Alberta or BC cuts the tax on commission from 13% to 5%: $2,600 on this sale.
- Prepaid taxes and fees come back to you on the statement of adjustments.
Frequently asked questions
How much does it cost to sell a house in Ontario?
About 6% to 7% of the sale price: 4% to 5% commission plus 13% HST on it, legal fees around $1,500, staging, and a discharge fee. On $650,000 that is roughly $41,000.
Is HST charged on real estate commission?
Yes. Commission is a service, taxed at the provincial rate: 13% in Ontario, 15% in the Atlantic provinces, 5% GST in Alberta, BC, Saskatchewan and Manitoba, 14.975% combined in Quebec.
Who pays the buyer's agent commission in Canada?
The seller, through the listing brokerage, in the conventional structure. The amount offered to the buyer's agent is set in the listing agreement and is negotiable.
Do I pay capital gains tax when I sell my house?
Not on a principal residence for the years you designate it. You must report the sale on your tax return. Rentals and second properties are taxable on half the gain.
Can I avoid the mortgage penalty when selling?
Yes, if your lender allows porting and you buy a new home within their window (usually 30 to 120 days). Otherwise the penalty applies and comes out of the sale proceeds.
Sources
- Canada Revenue Agency, GST/HST rates by province — checked 14 Sept 2026
- Financial Consumer Agency of Canada, mortgage prepayment penalties — checked 14 Sept 2026
- Real Estate Council of Ontario, listing agreements and commission — checked 14 Sept 2026
- Canada Revenue Agency, Principal residence — checked 14 Sept 2026
This is general information for Canadian home buyers and sellers, checked against the sources listed above on the date shown. It does not constitute legal, tax, or mortgage advice. Because rules and rates change, confirm current figures with your lawyer or notary, your lender, or the government office that administers the tax before you rely on them.