Is Real Estate Cashback Legal in Ontario?

It sounds almost too good: a brokerage hands a large share of the commission back to you. So it's reasonable to ask — is real estate cashback legal in Ontario? The short answer is yes. Brokerages are permitted to offer commission rebates and incentives to their own clients under the rules administered by the Real Estate Council of Ontario (RECO) under the Trust in Real Estate Services Act (TRESA). HOMEH's cashback is simply a transparent version of this.

Key takeaways

• Yes — commission rebates and incentives to a brokerage's own clients are permitted in Ontario.
• These rebates are governed by RECO under the Trust in Real Estate Services Act (TRESA).
• A rebate is the brokerage returning part of the commission it earns — not a separate payment from a third party.
• Rebates must be properly disclosed and handled through the brokerage, not paid 'under the table'.
• HOMEH is a licensed Ontario brokerage, so its Cashback Rebate fits squarely within these rules.

The short answer: yes, it's allowed

In Ontario, a real estate brokerage is allowed to give a portion of the commission it earns back to its own client. This is commonly called a commission rebate, incentive, or cashback. It is a long-standing, permitted practice — not a loophole. What matters is that it's done by a licensed brokerage, properly disclosed, and handled through the brokerage's books.

A rebate, not a kickback

Cashback is the brokerage returning part of the commission it has earned to its own client. That's very different from an undisclosed payment to a third party, which is not permitted.

Who regulates it: RECO and TRESA

Real estate in Ontario is regulated by the Real Estate Council of Ontario (RECO) under the Trust in Real Estate Services Act (TRESA) — the legislation that replaced the older REBBA framework. These rules govern how brokerages and agents must operate, including how compensation and any rebates are disclosed and processed.

Within that framework, a brokerage offering an incentive or rebate to its own client is permitted, provided the brokerage is licensed, the arrangement is disclosed, and the funds flow correctly through the brokerage. In other words, the regulator's focus is on transparency and proper handling — not on banning rebates.

How a compliant rebate actually works

Here's the simple version of what happens behind the scenes when you receive cashback through a licensed brokerage:

• The brokerage earns its commission on the transaction, as in any normal deal.
• Under your agreement, the brokerage returns an agreed portion of that commission to you — the rebate.
• The arrangement is disclosed and documented, not informal.
• The funds are handled through the brokerage, consistent with TRESA and RECO requirements.

What to look for

A legitimate rebate always comes from a licensed brokerage, is written into your agreement, and is clearly disclosed. If an offer can't show you those things, be cautious.

Why HOMEH's cashback fits the rules

HOMEH is a licensed Ontario real estate brokerage. Its cashback is a disclosed commission rebate to its own clients — exactly the kind of incentive Ontario's rules permit. Eligible buyers can receive 1.5% of the purchase price, paid at closing and subject to eligibility and your buyer agreement, so the amount scales with the transaction. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. It's documented through the brokerage, not an informal side payment.

For the mechanics of the rebate itself, see how HOMEH cashback works, how it compares in HOMEH vs a traditional realtor, and the seller side in how HOMEH's 1% listing fee works.

A note on taxes and personal advice

How a rebate is treated for your personal taxes can depend on your circumstances, and this article isn't tax advice. For your specific situation, confirm details with your accountant or a qualified professional. What's settled is the core point: the rebate itself is a permitted, regulated practice in Ontario.

Legal, licensed, and yours to claim

Eligible HOMEH buyers can receive the industry's highest Cashback Rebate through a licensed Ontario brokerage. Sellers list for 1%, or free when they also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. See your estimate at the cashback page.