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

Real estate commission

This is the biggest single cost. In Ontario, total commission is usually 4 to 5 percent of the sale price, plus 13 percent HST on that amount. It is split between the listing brokerage and the brokerage that brings the buyer, which is why the buyer's agent is paid from the seller's side of the deal.

Commission is not set by any board or by law. It is negotiated between you and your brokerage, and it covers the marketing, the photography and floor plans, the negotiation, and the payment to the cooperating brokerage. On an 875,000 dollar sale at 5 percent, that is 43,750 dollars plus 5,688 dollars HST.

Legal fees and disbursements

A real estate lawyer closes the sale: preparing and reviewing documents, dealing with the buyer's lawyer, discharging your mortgage and disbursing the funds. Expect roughly 1,000 to 2,000 dollars including disbursements. It costs more if there is a complication such as an estate, a transfer between joint owners, or a corporate seller.

Mortgage discharge and prepayment penalty

When your mortgage is paid off on closing, your lender charges a discharge fee, usually 200 to 400 dollars, to register the release.

The bigger and less predictable cost is the prepayment penalty for breaking a closed fixed mortgage before the end of its term. Lenders charge the greater of three months' interest or an interest rate differential calculation, and on a large balance with a year or more left in the term that can be several thousand to well over ten thousand dollars. Two things help: porting the mortgage to your next home, or timing the sale for the end of the term. Call your lender for the exact penalty figure before you list, because it can change the whole picture.

Preparing the home to sell

These are costs you choose, and they usually pay for themselves in a faster sale and a stronger price. A typical range is 1,000 to 6,000 dollars, depending on the home:

• Deep cleaning and window cleaning.
• Decluttering and short-term storage or a bin.
• Minor repairs and touch-up paint, or a full repaint in a neutral colour.
• Staging, from a consultation and light styling to full furniture rental for an occupied home, often 1,500 to 5,000 dollars or more.
• Landscaping and curb-appeal work, which matters in South Ajax and along the lake.
• An optional pre-listing home inspection.

Photography, floor plans, a listing video and the marketing campaign are covered by the commission, not billed separately. Doug and Rich walk the home and tell you which of these are worth doing.

Adjustments on closing

Property tax, utilities, and for a condo the common expenses, are prorated to the closing date. If you have prepaid past the closing date you receive a credit; if you are behind you pay the difference. These are usually small and can fall either way.

Capital gains tax: usually zero, sometimes not

If the home was your principal residence for every year you owned it, the gain is exempt from tax. You still report the sale to the Canada Revenue Agency on Schedule 3, but no tax is owed.

Tax does apply if the property was a rental or a second home, or if there was a change of use during ownership. In those cases a portion of the gain is taxable, with 50 percent of it included in income at 2026 rates. An estate sale can trigger tax on the increase in value between the date of death and the sale. If any of this could apply, speak with an accountant before you list.

Moving costs

A local move usually runs 1,000 to 3,000 dollars or more depending on the size of the home. Add storage and a short-term rental if the sale and the next purchase do not close on the same day, plus utility hookups and address changes.

A worked example: a Whitby detached home with a mortgage penalty

Sale price 875,000 dollars. Mortgage balance 510,000 dollars on a closed fixed rate with about 18 months left in the term, so an interest rate differential penalty of roughly 9,500 dollars applies. Principal residence, so no capital gains tax.

Illustrative only. Without the mortgage penalty, the net would be closer to 308,000 dollars, which is why the penalty question matters so much.

How to keep the total down

• Discuss the commission and the service level openly with your brokerage before you sign.
• Port your mortgage to the next home instead of paying a prepayment penalty, if your lender allows it, or line the sale up with the end of your term.
• Do your own decluttering, cleaning and minor repairs, and get two or three staging quotes.
• Aim to close the sale and the purchase on the same day to avoid double carrying costs.
• If the property is not a principal residence, keep receipts for capital improvements, as they reduce the taxable gain.

How The Gordon Brothers Team helps

Before you list, Doug and Rich prepare a net-proceeds sheet for your specific home, using a realistic sale price and your actual mortgage details, including a call to your lender about the penalty. They advise which preparation spending returns and which does not, and coordinate the lawyer and the mortgage discharge so nothing is missed on closing. For the full selling picture, see the Complete Home Seller Handbook and how selling works. For local market context, see Ajax, Whitby and Pickering.