Real Estate Commission in Ontario: How Much Do You Pay?

Real estate commission is the single largest cost of selling a home in Ontario — and one of the most misunderstood. There's no government-set rate, no legal minimum, and a lot of room to pay less than you think. This guide explains exactly how commission works, what it costs in real dollars, and how HOMEH's 1% listing fee changes the math.

Key takeaways

• Real estate commission in Ontario is not fixed by law — it's negotiable.
• Traditionally it's about 5% of the sale price, split roughly 2.5% listing / 2.5% co-operating.
• HST applies on top of commission in Ontario.
• On a typical GTA home, the difference between 5% and 1% is tens of thousands of dollars.
• HOMEH lists for a 1% listing fee, or free when you also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting.

How commission works in Ontario

When you sell a home, commission is the fee paid to the brokerages involved in the transaction. It is almost always paid by the seller out of the sale proceeds at closing, and it covers both the listing brokerage (your agent) and the co-operating brokerage (the buyer's agent).

There is no legally mandated rate in Ontario. Traditionally, total commission has settled around 5% of the sale price, typically split 2.5% to the listing side and 2.5% to the buyer's side — but every percentage point is negotiable, and lower-fee models are increasingly common.

Don't forget the HST

Commission is a service, so HST applies on top of it in Ontario. When you compare quotes, make sure you're comparing the rate plus tax — the headline percentage isn't the whole bill.

What commission actually costs

Because commission is a percentage of price, the dollar amount grows fast with home values. Here's what a traditional 5% commission (before HST) looks like across common Ontario price points.

Those are large numbers — and they're paid from your equity. Commission is usually the biggest line item in the real cost of selling a home in Ontario.

Traditional 5% vs HOMEH 1%

The listing side is the part you control. A traditional listing agent charges roughly 2.5%; HOMEH charges a 1% listing fee. On a typical GTA home, that gap alone is worth tens of thousands of dollars.

Is commission negotiable?

Yes — completely. Commission rates in Ontario are set by agreement between you and your brokerage, not by any board or law. You can negotiate the rate, choose a lower-fee brokerage, or pick a model like HOMEH's that charges a flat 1% on the listing side. The key is to compare the total cost, including HST and any add-on fees, not just the percentage.

If you're weighing going it alone to save the fee, read should you sell your home yourself (FSBO)? first — there are trade-offs in exposure and pricing that often cost more than they save.

Pay 1%, or list free when you also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting

HOMEH is a licensed Ontario brokerage built around a simple idea: full-service selling shouldn't cost 5% of your home. You get professional pricing, marketing and MLS exposure for a 1% listing fee — and the complete process is laid out in how to sell your house in Ontario and how to sell your house fast in Toronto.

See your savings on commission

HOMEH lists for 1%, or free when you also buy with HOMEH within 6 months, or $395 + HST with a Mere Posting. Compare it against a traditional 5% agent in seconds with the commission calculator.