Closing Costs When Selling a House in Ontario

Buyers worry about land transfer tax. Sellers have a different set of closing costs — and they can be far larger, because the biggest one is real estate commission. Between commission, legal fees, and a possible mortgage penalty, an Ontario seller can hand over tens of thousands of dollars before they ever see their net proceeds. Here's the full list, what's negotiable, and how to keep more of your equity.

Key takeaways

• Commission is the largest selling cost — traditionally around 5% of the sale price, plus HST.
• Legal fees for a sale run roughly $1,100–$2,500, similar to a purchase.
• Breaking your mortgage early can trigger a penalty — sometimes thousands of dollars.
• HOMEH lists for a 1% listing fee instead of the traditional ~2.5% listing side.
• Your net proceeds = sale price minus mortgage balance, commission, legal fees and any penalty.

Selling costs vs buying costs

When you buy, the dominant cost is land transfer tax. When you sell, you don't pay land transfer tax at all — but you do pay commission, and that's usually the single biggest line item of the entire transaction. The cost structure flips completely. (For the buyer's side, see our closing-costs breakdown.)

Sellers don't pay land transfer tax

Land transfer tax is a buyer's cost. As a seller, your big number is the commission you agree to pay your listing brokerage.

Real estate commission: the big one

Traditional total commission in Ontario is around 5% of the sale price, plus HST. It's usually split between the listing side (about 2.5%) and the co-operating buyer's agent (about 2.5%). On a $1,000,000 sale, that's roughly $50,000 before tax — more than enough to make commission the cost worth scrutinizing.

Commission is the one selling cost you have real control over. Compare scenarios with the commission calculator before you sign a listing agreement.

The other selling costs

Beyond commission, budget for these:

You'll still need a real estate lawyer to close the sale and discharge your existing mortgage.

Watch out for the mortgage penalty

If you sell before your mortgage term ends and don't port it to a new home, your lender may charge a prepayment penalty. On a fixed-rate mortgage this is often the greater of three months' interest or an 'interest rate differential' (IRD) — which can run into the thousands. Always ask your lender for the exact figure before you list.

Ask before you list

Call your lender for your current discharge penalty in writing. If you're buying again, ask whether you can port the mortgage to avoid the penalty entirely.

What you actually walk away with

Your net proceeds are what's left after the costs come out: sale price, minus your remaining mortgage balance, minus commission, legal fees and any penalty. Estimate yours with the selling cost calculator so there are no surprises on closing day.

List for 1%, or free when you also buy with us within 6 months, or $395 + HST with a Mere Posting

Commission is where sellers lose the most — so HOMEH lists your home for a 1% listing fee instead of the traditional ~2.5% listing side, and gives eligible buyers the industry's highest Cashback Rebate. Sellers who also buy with HOMEH within 6 months list for free, or pay $395 + HST for a Mere Posting. That can mean tens of thousands more in your pocket. See your numbers with the cashback calculator.