Real Estate Commission Rebates in Ontario: How Cash Back Works

A commission rebate means your brokerage shares part of its commission with you when you buy a home. In Ontario this is legal, regulated, and can put tens of thousands of dollars back in your pocket. Here is how it works, step by step.

Key takeaways

• A rebate is a share of the buyer-side commission that your brokerage returns to you, usually after closing.
• Cashback Rebates are legal in Ontario and regulated by RECO under the Trust in Real Estate Services Act (TRESA).
• Eligible HOMEH buyers can receive 1.5% of the purchase price back, paid at closing.
• The rebate must be put in writing with your brokerage before it applies, and you should tell your mortgage lender about it.
• Sellers can save too: some brokerages, including HOMEH, list homes for a 1% listing commission.

What is a commission rebate?

When a home sells in Ontario, the seller usually pays a commission that is split between two sides: the brokerage that listed the home and the brokerage that represented the buyer. As a buyer, you normally never see that money — it moves between the brokerages.

A commission rebate (often called cash back) changes that. Your brokerage agrees, in writing, to give you a share of the commission it receives. You still get full service from a licensed professional — you simply keep part of the money that was already built into the sale.

In one sentence

A rebate is not a discount on the house — it is your brokerage sharing its own commission with you.

Is cash back legal in Ontario?

Yes. Commission rebates are permitted in Ontario. Real estate brokerages are regulated by the Real Estate Council of Ontario (RECO) under the Trust in Real Estate Services Act, 2002 (TRESA), and RECO allows a brokerage to rebate part of its commission to a client who is a party to the transaction.

• The rebate must flow through the brokerage — not privately from an individual salesperson.
• The amount and timing must be put in writing in your agreement before it applies.
• The rebate can only go to a party to the trade — the actual buyer or seller.

In short: a properly documented rebate from a licensed brokerage is a normal, regulated part of Ontario real estate.

How much can you receive?

Rebate amounts vary by brokerage. Some return a portion of the buyer-side commission; others use a fixed percentage of the purchase price. Eligible HOMEH buyers can receive 1.5% of the purchase price as cash back, paid at closing.

A quick example

On an $800,000 home, 1.5% works out to up to $12,000 back after closing. On a $1,500,000 home, that figure can reach up to $22,500. The exact amount depends on the purchase price and the conditions in your agreement.

See your own number

The HOMEH cash-back calculator shows what your rebate could look like at any price — free, no sign-up needed.

How and when is the rebate paid?

Rebates are normally paid after closing. First the seller's brokerage pays the buyer-side commission to your brokerage; then your brokerage pays your rebate under the terms you agreed to in writing. This can take a few weeks after the closing date.

Tell your mortgage lender

You should disclose a Cashback Rebate to your mortgage lender. Lenders treat rebates in different ways, and being upfront protects your financing. Your lawyer and lender can confirm how it applies to you.

Buying with a rebate does not change how you shop, offer, or negotiate — you are represented by a licensed professional the whole way. See how buying with HOMEH works for the full journey.

Savings for sellers too

Rebates are a buyer-side idea, but sellers have their own version: a lower listing commission. Many Ontario sellers pay around 2.5% to the listing side. HOMEH lists homes for a 1% listing commission, with full service — photography, MLS® exposure, and a licensed agent managing the sale.

On an $800,000 sale, the difference between a 2.5% and a 1% listing side can mean roughly $12,000 kept in your pocket, before tax. The commission calculator shows your numbers, and selling with HOMEH explains the process.

A quick note

This article is general information only and is not legal, tax, or financial advice. Rules and figures can change — check with a licensed professional before you act.