The Cost of Selling a House in Canada

Selling is not just about the price you accept; it is about the net you keep. Below is a clear, GTA-focused breakdown of typical seller costs in Canada, where they come from, and smart ways to manage them.

The Big Three Seller Costs

1) Real estate commission (fully negotiable)

There is no fixed or government-set commission in Ontario. You and your listing brokerage agree on if, how, and how much commission is paid, and commissions are negotiable. RECO (Ontario’s regulator) explicitly states the amount is not fixed or approved by RECO, government, or boards.

Typical GTA patterns: Combined commission often falls in the 3.5%–5% range of the sale price, though structures vary by property, market, and services.

Sales tax: In Ontario, HST (13%) applies to services like real estate commissions and legal fees. Resale residential property itself is generally exempt from GST/HST, but the services you pay for are taxed.

2) Legal fees and disbursements

For a typical sale, Ontario lawyer fees commonly run about $1,000–$1,600+ (plus HST), with additional small disbursements (title searches, registrations, etc.). Some firms publish comparable ranges.

Expect registry-system disbursements (for example, per-instrument registration fees) on top of the legal fee.

3) Mortgage payout costs

If you still have a mortgage, there are two buckets:

• Prepayment penalty: On a fixed-rate mortgage, lenders typically charge the greater of three months’ interest or the Interest Rate Differential (IRD). Variable-rate mortgages usually charge three months’ interest. Confirm with your lender early.
  
  

• Discharge (administration) fee: Lenders often charge a discharge fee, commonly $0–$400, plus a land-registry discharge filed by your lawyer.

Condo-Specific Seller Cost

Status certificate (condominiums)

If you are selling a condo, buyers almost always request a status certificate. Ontario corporations may charge up to $100 (taxes included), and must provide it within 10 days. (Many sellers cover this to keep the deal smooth.)

Preparation and Marketing Costs (Situational, but Common)

• Staging: Professional staging in the GTA ranges widely by scope and home size. A recent national brand guide puts typical furniture rental around $500–$600 per room per month, while full-home staging packages can run into the low-to-mid-thousands. Ask what is included, how long the rental lasts, and whether accessories, movers, and storage are covered.
  
  

• Pre-list home inspection: Often $300–$700+ in Ontario, depending on size and complexity.
  
  

• Repairs, paint, cleaning, landscaping, photography, and videography: Budget based on your home’s condition and marketing plan. (These are services, so HST generally applies.)

Taxes and Adjustments to Know

HST on the sale vs. HST on services

• Resale homes: Usually exempt from GST/HST on the sale itself (seller is not a “builder”).
  
  

• Services: HST applies to commissions, legal fees, inspections, and staging. Ontario’s HST is 13%.
  
  

Capital gains, principal residence, and CRA reporting

• If the property was your principal residence for every year you owned it, the gain is generally exempt—but you must still report the sale on your tax return (Schedule 3 and Form T2091). This rule has applied since the 2016 tax year.
  
  

• If the home was not your principal residence (e.g., a rental, cottage, or mixed use), speak to your tax advisor about capital gains, recapture, and GST/HST nuances.
  
  

• Non-residents of Canada face special withholding rules and clearance-certificate requirements—get advice early if this applies to you.
  
  

Statement of Adjustments (how the money settles)

Your lawyer prepares a Statement of Adjustments to prorate items like property taxes, condo fees, and utilities, ensuring each party pays their share only for the period they own the property.

Good news for sellers: Land Transfer Tax (including Toronto’s MLTT) is paid by the buyer, not the seller. OntarioToronto

Example: A Typical GTA Freehold Sale (Illustrative Only)

Let us assume:

• Sale price $1,200,000
  
  

• Commission 5.0% (negotiated) = $60,000, plus HST $7,800
  
  

• Legal fee $1,300, plus HST $169
  
  

• Staging $5,000, plus HST $650
  
  

• Pre-list inspection $600, plus HST $78
  
  

• Lender discharge fee $300
  
  

• Mortgage prepayment penalty (illustrative fixed-rate case): $5,000 (three months’ interest on a $400,000 balance at 5%; your lender will calculate the actual amount).

Estimated seller costs (before moving/cleaning): $80,897. 

Add moving at, say, $2,000 + HST $260, and you are near $83,157. (If you are selling a condo, add a $100 status certificate.) These numbers are examples; your figures will vary based on your agreement, property, and lender.

How to Keep More of Your Net (Without Hurting Your Sale)

Right-size your prep

• Focus on high-ROI touch-ups (paint, lights, curb appeal) and targeted staging in key rooms rather than the whole house, especially if you will not be vacant for long.
  
  

Time your sale with your mortgage

• Check your penalty window and renewal dates; sometimes a small date shift saves thousands. Ask your lender for a written penalty quote and whether portable or blend-and-extend options exist.
  
  

Be clear on commission structure and services

• Because commission is negotiable, align the fee with the scope of marketing (staging plan, content, syndication, agent network, and negotiation strategy).
  
  

Shop (wisely) for legal services

• Compare quotes that specify the fee, HST, and disbursements (e.g., registrations, title search), so you are comparing apples to apples.

Final Thoughts

Every sale is unique. The exact mix of commission, staging, mortgage penalties, legal fees, and adjustments determines your true net. Understanding where each dollar goes lets you choose the right strategy, timing, and services—so you keep more at closing.

Ready to talk numbers for your address? The Johnson Team has got you covered. Whether you are selling, buying, or both, let us map your costs, your net, and your path to a smooth closing. Contact The Johnson Team today to start working with an agent right away.