The Real Cost of Selling a Home in Ontario

The price your home sells for is not the money you walk away with. Between commission, legal fees, your mortgage discharge, and prep costs, the cost of selling a home in Ontario can take a serious bite out of your equity — with real estate commission as the single largest line. Here's exactly what you'll pay, with real numbers, and where you can cut the bill.

Key takeaways

• Traditional commission of ~5% is by far the biggest selling cost — on an $800,000 home that's about $40,000 plus HST.
• HOMEH lists for a 1% listing fee, dramatically reducing the largest cost of selling.
• Legal fees, mortgage discharge, and staging/moving are smaller but still add up.
• Your net proceeds are the sale price minus all selling costs and your remaining mortgage.
• HOMEH lists for 1%, or free when you also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting, which keeps your selling costs low.

What it really costs to sell

Selling costs fall into four buckets: commission, legal fees, mortgage discharge, and preparation (staging, repairs, moving). Of these, commission dwarfs everything else under the traditional model — which is exactly why it deserves the most scrutiny. Get the wider context in our guide to selling your house in Ontario.

Below we use an $800,000 sale as a running example so you can see how the pieces compare in real dollars.

Commission: the biggest cost

Traditional real estate commission in Ontario is typically around 5% of the sale price, usually split roughly 2.5% to the listing brokerage and 2.5% to the buyer's brokerage, plus HST. On an $800,000 home that's about $40,000 before tax — paid out of your proceeds on closing.

This is where your choice of brokerage makes the biggest difference. HOMEH lists for a 1% listing fee instead of the traditional ~2.5% listing side, which can save tens of thousands on a single sale.

For a deeper look at how commission is structured and negotiated, see our breakdown of whether to sell your home yourself (FSBO) — the FSBO question is really a commission question.

The other selling costs

Beyond commission, every Ontario seller should budget for legal work and discharging their mortgage. Staging, repairs, and moving are optional but common.

Watch the mortgage prepayment penalty

If you break a closed mortgage before its term ends, your lender may charge a prepayment penalty that can run into thousands of dollars. Ask your lender for the exact figure before you list — it can meaningfully change your net proceeds.

Where the money goes

Here's how a typical selling-cost budget breaks down on an $800,000 home under the traditional model. Commission dominates — which is why reducing it has the biggest impact on what you keep.

Swap the traditional commission for HOMEH's 1% listing fee and the largest slice shrinks dramatically — leaving far more equity in your pocket.

Calculating your net proceeds

Your net proceeds are simple to think about: take the sale price, subtract all selling costs, then subtract whatever you still owe on your mortgage. What's left is your equity — the money that funds your next move.

Plug in your own numbers — including your mortgage balance — with the selling cost calculator to see your true bottom line. Pricing well matters here too; see how to price your home to sell.

Cut the biggest cost with HOMEH

HOMEH lists for a 1% listing fee instead of the traditional ~2.5% listing side, or free when you also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting, which keeps your selling costs low. Calculate your net proceeds with the selling cost calculator.