How much does it cost to sell a home in Ontario?
Want the real price to sell your Ontario home? Here’s the full, no-nonsense breakdown you need.
Quick answer: typical total costs
Selling a home in Ontario typically costs between 4% and 7% of the sale price when you factor in real estate commissions, HST on commission, legal fees, staging, small repairs and moving. Depending on your situation (mortgage penalty, major repairs, or premium marketing) costs can push higher. This is the practical range — use it to plan smartly.
Major cost categories explained
- Real estate commission: 3% to 6% of sale price (total). Most brokerages charge a split between listing and buyer agents. Expect to pay 13% HST on the commission in Ontario.
- Legal fees and disbursements: $700 to $1,500. Covers closing paperwork, title transfer and bank instructions.
- Mortgage discharge or penalties: $0 to thousands. If you break a fixed mortgage early, penalty can be several months’ interest or an interest rate differential (IRD). Check your mortgage contract.
- Repairs and pre-list work: $500 to $10,000+. Small fixes and curb appeal deliver high ROI; structural work costs more.
- Staging and photography: $500 to $5,000. Professional photos and staging often increase sale price and reduce days on market.
- Condo documents or certificates: $100 to $400, where applicable.
- Moving and interim housing: $500 to $3,000 or more depending on distance.
Note: Land transfer tax is paid by the buyer in Ontario, not the seller.
How to calculate your net proceeds (simple formula)
Sell price — (commission + HST on commission + legal fees + repairs + mortgage payout + moving) = Net proceeds.
Example: $800,000 sale
- Commission 5% = $40,000 + HST 13% on commission = $5,200
- Legal fees = $1,000
- Repairs & staging = $3,000
- Mortgage payout = $300,000
Net proceeds ≈ $800,000 – $49,200 – $1,000 – $3,000 – $300,000 = $446,800
Smart strategies to reduce costs and boost net proceeds
- Price right. Overpricing increases days on market and hidden costs. Accurate comps win offers.
- Negotiate commission structure. Flat-fee or tiered options exist; compare agents.
- Do high-ROI fixes: paint, staging, declutter, small landscaping.
- Get multiple offers — competitive tension raises price more than small commission cuts.
- Review mortgage terms early to avoid surprise penalties.
- Consider a pre-list inspection to speed closing and reduce renegotiation risk.
Taxes and capital gains
If the property qualifies as your principal residence, capital gains tax generally does not apply. If it doesn’t, you may owe tax on gains—consult an accountant for precise calculations.
Final note
Selling costs vary, but planning and the right agent change the math. If you want a clear estimate for your specific property, get a net proceeds breakdown and a step-by-step plan.
Contact Tony Sousa — local Ontario realtor who runs numbers for sellers and creates plans that protect your profit.
Email: tony@sousasells.ca
Phone: 416-477-2620
Website: https://www.sousasells.ca
