Guide · For sellers
How Much Does It Cost to Sell a House in Ontario?
The cost of selling is the difference between your sale price and the money that reaches your bank account. This guide follows every line of that difference, with a worked example on an Ajax home, so closing day holds no surprises.
Key takeaways
- Selling costs usually land between 4 and 6 percent of what the home sells for, before your mortgage payout.
- Commission is your biggest expense, at roughly 4 to 5 percent of the price with 13 percent HST added, divided between two brokerages and open to negotiation.
- A closing lawyer typically costs between $1,000 and $2,000, disbursements included.
- The expense sellers most often underestimate is a prepayment penalty for ending a fixed mortgage early. Carrying the mortgage over to your next home can avoid it.
- Preparing and staging the home often runs from $1,000 to $6,000, depending on its condition.
- A principal residence normally owes no capital gains tax, though the sale is still reported. Rentals and second homes are different.
Real estate commission
No other line comes close to commission. Ontario sellers typically pay a total of 4 to 5 percent of the price, and 13 percent HST is added to that figure. Both brokerages in the deal share it, so the sale proceeds also fund the buyer's agent.
No law or board sets the rate. You and your brokerage negotiate it, and it covers marketing, photography and floor plans, negotiation, and payment to the cooperating brokerage. Take a 950,000 dollar sale at 5 percent: commission is 47,500 dollars plus 6,175 dollars HST, a total of 53,675 dollars.
Legal fees and disbursements
Your lawyer closes the sale. They review and prepare the documents, work with the buyer's lawyer, pay out your mortgage and release the funds. Budget between $1,000 and $2,000, disbursements and office charges included. An estate, a transfer between co-owners or a corporate seller can add to that.
Mortgage discharge and prepayment penalty
Registering the release of your mortgage costs a discharge fee, commonly $200 to $400.
The larger risk is the prepayment penalty for ending a closed fixed-rate mortgage early. The penalty is whichever is higher: three months of interest, or the lender's interest rate differential (IRD) formula. On a large balance, that can reach thousands of dollars. Two things reduce or remove it: carrying the mortgage over to your next home (porting), or scheduling the sale for when the term ends. Ask your lender for the exact figure before you list.
Preparing the home to sell
Preparation is the part you control, and it tends to pay for itself in speed and price. Budget $1,000 to $6,000, depending on the home. The usual items:
- Deep cleaning, windows included.
- Decluttering, with a storage bin or short-term storage.
- Small repairs, plus touch-up paint or a neutral repaint.
- Staging, ranging from a styling consultation to rented furniture for a lived-in home. Expect $1,500 to $5,000 and up.
- Curb appeal and landscaping work.
- A pre-listing home inspection, if you want one.
Your commission normally covers the photography, floor plans, video and marketing, with no separate bill. Laura walks the home and tells you which items are worth the money and which are not. Her focus is design and first impressions, so the budget goes where buyers notice.
Adjustments on closing
On closing day, property tax, utilities and condo fees are split between you and the buyer as of the closing date. Prepaid beyond that day? You get a credit. Behind? You pay the difference. The amounts are usually small and can go either way.
Capital gains: usually no tax, with exceptions
A home you lived in as your principal residence for all the years you owned it is exempt from tax on the gain. The sale still goes on your return, on Schedule 3 with the Canada Revenue Agency, though nothing is owed.
A rental or second home, or a property whose use changed while you owned it, is different. Half of the gain is taxable at 2026 rates. An estate sale can also be taxed on growth between the date of death and the sale. If any of this could apply to you, check with an accountant before you list.
Moving costs
A local move often costs $1,000 to $3,000, more for a larger home or full packing. If your sale and purchase close on different days, budget for storage and a short-term rental, plus utility hookups and address changes.
A worked example: an Ajax detached home
The sale price is 950,000 dollars. The mortgage balance is 420,000 dollars at a variable rate, so there is no prepayment penalty. The home is a principal residence, so no capital gains tax applies.
| Real estate commission, 5 percent | 47,500 |
| HST on commission, 13 percent | 6,175 |
| Legal fees and disbursements | 1,500 |
| Mortgage discharge fee | 350 |
| Staging and preparation | 3,500 |
| Closing adjustments | 300 |
| Capital gains tax, principal residence | 0 |
| Moving | 2,500 |
| Total selling costs | 61,825 |
| Less mortgage payout | 420,000 |
| Estimated net proceeds | 468,175 |
For illustration only. Your commission rate, any mortgage penalty, preparation budget and tax situation will change these numbers.
Ways to keep the total down
- Raise commission and service level with your brokerage early, before you sign a listing agreement.
- Ask whether your lender will let you port the mortgage. That can replace a penalty entirely.
- Do the decluttering, cleaning and small fixes yourself, and collect two or three staging quotes.
- Aim to close your sale and purchase on the same day. It avoids double carrying costs and storage.
- For a property that is not your principal residence, save every receipt for capital improvements. They lower the taxable gain.
Where Laura fits in
Before you list, Laura prepares a net-proceeds sheet for your home. It starts from a believable sale price and your real mortgage terms, so you begin with the true number. She advises which preparation earns its cost, and coordinates the lawyer and the mortgage payout so nothing is missed at closing. For the full picture of selling, see the Seller Blueprint and how selling works. For neighbourhood detail, see our pages on Ajax, Whitby and Pickering.
No surprises at closing
Get a personalized net-proceeds sheet
Share a few details about your home and Laura will prepare your estimate: a realistic sale price, each selling cost line by line, your mortgage payout, and the amount you would walk away with. No obligation. Laura McBride, REALTOR®, Revel Realty Inc., Brokerage, serving Ajax, Pickering, Whitby and Durham Region.
This guide gives general 2026 information and typical ranges, not a quote. Commission is agreed between you and your brokerage and can be negotiated. It is not tax or legal advice, and it does not aim to solicit sellers already under contract with a brokerage.
The cost of selling: common questions
How much commission do I pay when I sell a house in Ontario?
Most sellers pay a combined 4 to 5 percent of the price, with 13 percent HST on top, divided between the two brokerages involved. No law fixes the figure. You and your brokerage agree it, based on the service and marketing included. For example, 5 percent of 950,000 dollars is 47,500 dollars, plus 6,175 dollars in HST.
Will I owe capital gains tax when I sell my house in Ontario?
Not for a principal residence that you lived in for every year of ownership, although the sale is still reported to the CRA on Schedule 3. Rentals, second homes and properties that changed use are taxed on half the gain at 2026 rates. An estate sale can be taxed on growth since the date of death. An accountant can confirm your case.
What are the hidden costs of selling a home?
The ones people miss most often: HST on the commission, a prepayment penalty for ending a fixed mortgage early, staging and preparation, closing adjustments for prepaid property tax and utilities, and overlapping carrying costs or storage when the sale and the purchase close on different days.
What will I actually take home after selling?
Start with your expected sale price, subtract your mortgage balance, then take off roughly 4 to 6 percent for selling costs. Commission rate, any mortgage penalty, your preparation budget and your tax situation all shift the result. A personalized net-proceeds sheet gives you the real number before you list.