The cost to sell a house in Ontario is usually about 4% to 6% of the price. Most of it is real estate commission plus 13% HST, followed by legal fees and mortgage payout costs. On a $900,000 home, that’s roughly $38,000 to $53,000, before any repairs, staging or moving.
Below, you’ll find every fee line by line, with 2026 GTA numbers, example math and a few legal ways to keep more of your money.
Key takeaways
- Commission is the biggest cost, and it’s negotiable. Ontario totals often land between 3.5% and 5%, plus HST.
- You pay 13% HST on commission and legal fees, but not on the sale of your own home.
- Sellers don’t pay land transfer tax, since that’s the buyer’s cost.
- Breaking a mortgage early can add thousands in prepayment penalties.
- Selling your principal residence is usually tax-free, but you must still report it to the CRA.
What’s the total cost to sell a house in Ontario?
Here’s the full cost to sell a house in Ontario, line by line, with a worked example on a $900,000 sale. Some costs stay the same on every sale, while others depend on your mortgage and the choices you make.
| Cost | Typical range | Example on $900,000 |
|---|---|---|
| Real estate commission | Negotiable, often 3.5% to 5% | $45,000 at 5% |
| HST on commission | 13% of the commission | $5,850 |
| Legal fees | About $1,000 to $2,500 plus HST and disbursements | $2,260 ($2,000 plus HST) |
| Mortgage discharge fee | Set by your lender | Ask your lender |
| Prepayment penalty | Higher of 3 months’ interest or IRD | $5,625 (see example below) |
| Repairs, staging and cleaning | Up to you | Varies |
| Moving and storage | Up to you | Varies |
| Land transfer tax | $0, since the buyer pays it | $0 |
In this example, the core costs add up to $58,735 when you include the penalty. Without a penalty, they come to $53,110. So the cost to sell a house in Ontario depends heavily on your mortgage and your commission rate.
How commission drives the cost to sell a house
Commission is the largest part of the cost to sell a house in Ontario. It’s the fee you pay the brokerages that list and sell your home, and it often covers both your agent and the buyer’s agent. As RECO points out, no law sets the rate, so it’s negotiable.
The Financial Consumer Agency of Canada says agent fees range from 2% to 6%. In practice, many Ontario sellers pay a total of 3.5% to 5%, according to WOWA’s Ontario commission calculator. Then 13% HST goes on top.
For example, the GTA’s average sale price in August 2026 was $993,410, according to TRREB. A 5% commission on that is about $49,671. Add HST, and the seller pays roughly $56,128.
Every half point matters
Say you sell a $900,000 home in Mississauga. Here’s what small changes in the rate do to your bill.
- 3.5% commission: $31,500 plus $4,095 HST equals $35,595.
- 4% commission: $36,000 plus $4,680 HST equals $40,680.
- 5% commission: $45,000 plus $5,850 HST equals $50,850.
The gap between 3.5% and 5% is $15,255. That’s why it pays to ask, even in a slower market.
Tip: Negotiate before you sign
Ask what each rate includes, like photos, staging advice and marketing. Also, under TRESA rules in force since December 2023, brokerages must give you RECO’s information guide, which explains your options.
Legal fees and other closing costs
Legal fees are a smaller but fixed part of the cost to sell a house in Ontario. In practice, you need a real estate lawyer, because only lawyers can register most title transfers in Ontario’s electronic land registry. Seller legal fees typically run about $1,000 to $2,500 plus HST and disbursements.
Your lawyer reviews the agreement, prepares the statement of adjustments, pays off your mortgage and sends you the rest. The statement of adjustments splits property tax, and sometimes utilities, between you and the buyer up to closing day. So if you prepaid your taxes for the year, you may get some money back.
Who pays the land transfer tax?
The buyer does. Sellers in Ontario don’t pay land transfer tax, including Toronto’s extra municipal tax. The buyer also covers their own lawyer and title insurance.
Is there HST on the sale of a house?
Usually not. The sale of a used home you’ve lived in is generally exempt from HST. However, you still pay 13% HST on services like commission and legal fees.
Mortgage costs when you sell a house in Ontario
Your mortgage can add a surprise to the cost to sell a house in Ontario. If you still owe money, your lawyer pays it off from the sale proceeds on closing. Lenders often charge a small discharge fee to register the release, so ask yours for the exact amount.
The bigger risk is a prepayment penalty. If you break a closed mortgage before the term ends, the penalty is usually the higher of three months’ interest or the interest rate differential (IRD). The IRD roughly covers the interest your lender loses when rates have dropped since you signed.
For example, say you owe $500,000 at 4.5%. Three months’ interest comes to about $5,625. On a fixed-rate mortgage, the IRD could be higher than that.
Good to know: Porting can avoid the penalty
If you’re buying another home, ask whether you can port your mortgage, which means moving it to the new property. As a result, you may avoid the prepayment penalty altogether.
Optional costs that add up
These aren’t required, but they can push up the cost to sell a house in Ontario quickly. Most sellers who list with an agent spend on at least a few of them.
- Pre-sale repairs, paint and landscaping
- Staging and a deep clean
- A pre-listing home inspection
- Moving, storage and temporary housing
- Carrying costs: mortgage, tax, insurance and utilities while the home is for sale
Carrying costs are easy to forget. In August 2026, GTA homes took 49 days on average to sell when you count relists, according to the TRREB Market Watch. Then closing often takes another 30 to 90 days, so you could carry the home for a few months or more.
See your real walk-away number
Our free calculator adds up commission, HST, legal fees and carrying costs, then compares listing with a cash sale. You’ll also get a PDF report by email.
Taxes when you sell a house in Ontario
If the home was your principal residence for every year you owned it, the gain is usually tax-free. But you still have to report the sale on Schedule 3 and Form T2091(IND). In fact, the CRA only allows the exemption if you report it.
Forgetting can cost you. The CRA can charge a late-designation penalty of $100 for each full month, up to $8,000.
Rentals and cottages are different. Half of the gain is usually taxable, since the inclusion rate stays at 50% after Ottawa cancelled a proposed increase in March 2025. Also, if you owned any home for less than 365 days, the flipping rule usually treats the gain as business income, unless a life event such as a death, separation or job loss applies.
How to lower the cost to sell a house in Ontario
You can’t avoid every fee, but you can trim several of them. Start with the biggest ones first.
Negotiate commission. Ask two or three brokerages for their rates and what each one includes.
Compare lawyer quotes. Ask for an all-in price that includes HST and disbursements.
Check your penalty early. Ask your lender for a payout statement, then consider porting or timing the sale near your renewal.
Skip big upgrades. Fix safety issues and obvious problems, but don’t renovate a kitchen for the next owner.
Compare a cash offer. A cash sale removes commission, repairs and showings, though the price is usually below full market value.
That last step is about your net, not the headline price. A cash offer only makes sense if what you take home is close enough, or if speed and certainty matter more to you. Our guide on selling for cash in Ontario walks through that trade-off, and our red-flag checklist for cash buyers helps you vet any offer.
This article is general information, not legal or tax advice. Talk to a real estate lawyer or accountant about your situation.
Frequently asked questions
The biggest part of the cost to sell a house in Ontario is real estate commission, often 3.5% to 5% in total, plus 13% HST on it. Next come legal fees of about $1,000 to $2,500 plus HST and disbursements, and a mortgage discharge fee. You may also face a prepayment penalty if you break your mortgage early. Repairs, staging and moving costs are optional extras.
Each side pays its own lawyer. As the seller, you pay for your lawyer to review the agreement, prepare the statement of adjustments, discharge your mortgage and pay you out. Fees typically run about $1,000 to $2,500 plus HST and disbursements. Your lawyer usually takes the fee from the sale proceeds on closing day, so you rarely pay it upfront.
In Ontario, the buyer usually pays more in closing costs, mainly because they pay land transfer tax, plus their own legal fees and title insurance. The seller pays commission, which is usually the single biggest cost in the deal. The seller also covers their own legal fees and any mortgage payout costs, such as a discharge fee or prepayment penalty.
If it was your principal residence for every year you owned it, you usually pay no capital gains tax. You must still report the sale on Schedule 3 and Form T2091(IND). For rentals or second homes, half of the gain is taxable at your marginal rate. Homes you owned for less than 365 days may fall under the flipping rule.
