The real cost to sell a house in Ontario

Most sellers focus on their sale price — but your net proceeds are what actually matter. Selling a home in Ontario comes with several predictable costs, and knowing them upfront lets you price strategically, avoid surprises at closing, and plan your next move with confidence. As a rough guide, total selling costs in the GTA usually land around 4%–6% of the sale price. Here's where that money goes.

1. Real estate commission (the biggest line)

Commission is the largest cost of selling and, importantly, it's fully negotiable — Ontario has no fixed rate. In the GTA it commonly totals around 4%–5% plus HST, typically split between the listing brokerage and the buyer's brokerage. That fee covers pricing strategy, professional photography and marketing, showings, negotiation, and coordinating the deal through to closing. On a $1,000,000 sale, a 5% commission is $50,000 plus HST — which is exactly why the right pricing and marketing strategy, not just the lowest rate, is what protects your bottom line.

2. Legal fees and disbursements

A real estate lawyer handles the closing on the sale side: reviewing the agreement, discharging your mortgage, and transferring title. Budget roughly $1,000–$2,000including disbursements and HST. It's money well spent — your lawyer protects you through the most legally sensitive part of the transaction.

3. Staging, prep and photography

Presentation drives price. Depending on the home, prep can range from a weekend of decluttering, paint and deep cleaning to a professional stage with rented furniture. Done well, it's one of the highest-return dollars you'll spend — staged, well-photographed homes consistently sell faster and attract stronger offers. Professional photography (and often video and floor plans) is standard for a competitive GTA listing. I include a staging consultation and professional media as part of my listing service.

4. Mortgage discharge and penalties

If you have a mortgage, you'll pay a discharge fee to remove it from title. If you break a fixed-rate mortgage before its term ends, your lender may also charge a prepayment penalty— sometimes three months' interest, sometimes an interest-rate-differential calculation that can run into thousands. Call your lender for an exact figure before you list, and factor it into your net proceeds.

5. Capital gains — usually not on your home

Here's the good news for most sellers: if the property was your principal residence for every year you owned it, the sale is generally exempt from capital gains tax under the principal residence exemption. Capital gains typically come into play on second homes, cottages, and investment or rental properties, where tax applies to a portion of the gain. The rules and reporting can be nuanced, so confirm with an accountant — especially if the home was ever rented or used partly for business.

Estimating your net proceeds

Put it together with simple math:

• • Start with your expected sale price;
• • subtract your remaining mortgage balance (plus discharge/penalty);
• • subtract commission plus HST;
• • subtract legal fees and prep/staging costs;
• • what's left is your estimated net proceeds.

The single biggest variable is the sale price itself — and that's where a realistic, comparable-based valuation matters most. A number that's too high sits on the market and ultimately sells for less; a strategic price attracts competing offers.

This is general information for Ontario sellers, not legal, tax or accounting advice. Costs vary by property, brokerage agreement and lender. Confirm commission in your listing agreement, penalties with your lender, and tax treatment with an accountant.