Guide · For sellers
How Much Does It Cost to Sell a House in Ontario?
The cost of selling is the gap between your sale price and what actually lands in your bank account. This guide walks through every line, with a worked example on an Ajax home, so there are no surprises at the lawyer's office.
Key takeaways
- Budget roughly 4 to 6 percent of the sale price for total selling costs, before your mortgage is paid off.
- Real estate commission is the largest cost: about 4 to 5 percent, plus 13 percent HST, split between the two brokerages, and negotiable.
- Legal fees to close run about 1,000 to 2,000 dollars including disbursements.
- The sleeper cost is a mortgage prepayment penalty for breaking a fixed mortgage early. Porting to your next home can avoid it.
- Staging and pre-listing preparation typically run 1,000 to 6,000 dollars depending on the home.
- Capital gains tax is usually zero on a principal residence, but you still report the sale, and rentals or second homes are taxable.
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 law or by any board. It is negotiated between you and your brokerage, and it reflects the marketing, the photography and floor plans, the negotiation, and the payment to the cooperating brokerage. On a 950,000 dollar sale at 5 percent, that is 47,500 dollars plus 6,175 dollars HST, for 53,675 dollars.
Legal fees and disbursements
A real estate lawyer closes the sale: preparing and reviewing the documents, dealing with the buyer's lawyer, discharging your mortgage and disbursing the funds. Expect roughly 1,000 to 2,000 dollars including disbursements and office charges. 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 cost sellers underestimate 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 that can run into the thousands. Two things reduce or remove it: porting the mortgage to your next home, or timing the sale for the end of the term. Ask your lender for the exact penalty figure before you list.
Preparing the home to sell
These are costs you choose, and they usually pay for themselves in a faster sale and a higher 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.
- An optional pre-listing home inspection.
Photography, floor plans, a listing video and the marketing campaign are normally covered by the commission, not billed separately. Laura will walk the home and tell you which of these are worth doing and which are not.
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 adjustments 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 have to report the sale to the Canada Revenue Agency on Schedule 3 of your return, 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 your ownership. In those cases a portion of the gain is taxable, with 50 percent of it included in your 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 to you, talk to 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 and whether you pack yourself. Add storage and a short-term rental if your sale and your next purchase do not close on the same day, plus utility hookups and address changes.
A worked example: an Ajax detached home
Sale price 950,000 dollars. Mortgage balance 420,000 dollars, on a variable rate, so no prepayment penalty. Principal residence, so no capital gains tax.
| Real estate commission, 5 percent | 47,500 |
| HST on commission, 13 percent | 6,175 |
| Legal fees and disbursements | 1,500 |
| Mortgage discharge fee | 350 |
| Staging and preparation | 3,500 |
| Closing adjustments | 300 |
| Capital gains tax, principal residence | 0 |
| Moving | 2,500 |
| Total selling costs | 61,825 |
| Less mortgage payout | 420,000 |
| Estimated net proceeds | 468,175 |
Illustrative only. Your commission rate, mortgage penalty, preparation budget and tax situation will change these numbers.
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.
- Do your own decluttering, cleaning and minor repairs, and get two or three staging quotes.
- Line up the sale and the purchase to close on the same day to avoid double carrying costs and storage.
- If the property is not a principal residence, keep receipts for capital improvements, as they reduce the taxable gain.
How Laura helps
Before you list, Laura prepares a personalized net-proceeds sheet for your specific home, using a realistic sale price and your actual mortgage details, so you know the real number going in. She advises which preparation spending returns and which does not, and coordinates the lawyer and the mortgage discharge so nothing is missed on closing. For the full selling picture, see the Seller Blueprint and how selling works. For local market context, see Ajax, Whitby and Pickering.
No surprises at closing
Get a personalized net-proceeds sheet
Tell Laura a bit about your home and she will prepare a net-proceeds estimate: a realistic sale price, your selling costs line by line, your mortgage payout, and what you would actually walk away with. No obligation. Laura McBride, REALTOR®, Revel Realty Inc., Brokerage, serving Ajax, Pickering, Whitby and Durham Region.
This guide is general information for 2026 and uses typical ranges, not a quote. Commission is negotiable and set between you and your brokerage. It is not tax or legal advice, and is not intended to solicit sellers already under contract with a brokerage.
The cost of selling: common questions
What percentage does a realtor take when selling a house in Ontario?
Commission is typically 4 to 5 percent of the sale price, plus 13 percent HST, split between the listing brokerage and the brokerage that brings the buyer. It is not fixed by law: it is negotiated between you and your brokerage and varies with service and marketing. On a 950,000 dollar sale at 5 percent, that is 47,500 dollars plus 6,175 dollars HST.
Do I pay capital gains tax when I sell my house in Ontario?
Not if the home was your principal residence for every year you owned it. That gain is exempt, though you still report the sale to the CRA on Schedule 3. Rentals, second homes, and properties with a change of use are taxable, with 50 percent of the gain included in income at 2026 rates. Estate sales can be taxable on the increase in value since the date of death. Confirm with an accountant.
What are the hidden costs of selling a home?
The ones most often missed: HST on the commission, a mortgage prepayment penalty for breaking a fixed mortgage early, staging and pre-listing preparation, closing adjustments for prepaid property tax and utilities, and overlapping carrying costs or storage if the sale and the next purchase do not close on the same day.
How much will I actually walk away with?
As a rough guide: expected sale price, minus your mortgage balance, minus about 4 to 6 percent of the sale price for total selling costs. The exact number depends on your commission rate, any mortgage penalty, your preparation budget, and whether capital gains tax applies. A personalized net-proceeds sheet gives you the real figure before you list.