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Summary: Plan for roughly 3–5% of your home's value in selling costs. The biggest is the real estate commission (typically 3.5–5% of the sale price, plus HST), followed by legal fees and disbursements, capital gains tax if the home is not your principal residence (50% of the gain is taxable, a federal rule), and smaller items like staging, moving, and a mortgage discharge fee ($250–$500) plus any prepayment penalty. Your lawyer handles the legal and closing costs.
Selling your home in Ontario is an exciting step, but it comes with a number of costs that are easy to underestimate. Knowing them up front helps you budget and avoid surprises. Here is what to plan for, roughly in order of size.
How much does it cost to sell a house in Ontario?
As a rule of thumb, budget about 3–5% of your home's value for the costs of selling, before you have the home formally appraised. The single biggest piece is the real estate commission; the rest is legal fees, taxes (if applicable), and moving-related costs. Here is a quick reference, with each explained below (figures are typical ranges, not quotes):
Cost | Typical amount |
Real estate commission | About 3.5–5% of the sale price, plus HST |
Legal fees and disbursements | Varies; quoted upfront at Ownright |
Capital gains tax (if not your principal residence) | 50% of the gain is taxable, at your marginal rate |
Staging | Varies with home size and whether you rent furniture |
Moving | From about $200 in supplies; more with movers |
Mortgage discharge fee | $250–$500, plus any prepayment penalty |
What is the real estate commission when selling?
Most sellers hire a real estate agent to market, stage, and sell the home, and the seller usually pays both agents' commissions (the buyer's agent is paid through your lawyer at closing). In Ontario the total commission is usually 3.5–5%, often around 2.5% to the buyer's agent and 1–2.5% to the seller's agent.
Real estate commission is also subject to HST, which is 13% in Ontario, charged on the commission amount. To estimate your overall costs, this cost-of-selling calculator lets you input your expected commission, legal fees, and sale price.
Do you pay tax when you sell your home?
There are two taxes to keep in mind. The first is the HST on the real estate commission noted above (13% in Ontario, on the commission, not the sale price).
The second is capital gains tax, which applies only if the home is not your principal residence. Under federal tax rules, 50% of the gain is taxable at your marginal rate; your principal residence is generally exempt. Because this depends on your situation, consult a tax professional to make sure you are minimizing what you owe. One thing in your favour: if you have already paid property tax for the year, the buyer typically reimburses you for the portion after closing through the statement of adjustments, which your lawyer applies automatically.
What other costs should you budget for?
Beyond commission and taxes, a few costs round out the picture:
Legal fees and disbursements. Your real estate lawyer verifies any mortgages or lines of credit, works with the buyer's lawyer, and closes the sale. Traditional fees can drift between quote and closing; Ownright gives the cost upfront. See our step-by-step sale closing guide for the full process.
Staging and repairs. Staging makes a home show better, with cost depending on size and rented furniture. A pre-sale check for repairs helps you avoid surprises after the inspection.
Moving. Budget at least $200 for packing supplies, more if you hire movers or a truck, which also varies by time of year.
Mortgage discharge. If you pay off your mortgage before the term ends, you may owe a prepayment penalty, plus a discharge fee of $250–$500. If you are porting the mortgage to a new property, you may avoid some of these, so check with your lender or lawyer.
Final utilities and property taxes. Close out utility accounts and settle property taxes in the closing adjustments; your lawyer assists with the tax side.
How can you reduce the costs of selling?
The main way to cut costs is to list for sale by owner (FSBO), which saves the seller's-agent commission but takes on real work and risk: pricing the home, dealing with buyers' agents, and marketing it well. It suits sellers with some transaction experience. For more, see our guide on selling your home privately.
Two middle-ground options: hire an appraiser (starting around $400) to set a price, or use a flat-fee or low-cost realtor, who charges a fixed amount regardless of sale price in exchange for you doing more of the work yourself. For a fuller cost breakdown across the whole transaction, see our guide on the costs involved in a real estate transaction.
Frequently asked questions
How much does it cost to sell a house in Ontario?
Budget roughly 3–5% of the home's value. The largest cost is the real estate commission (about 3.5–5% plus HST), followed by legal fees, capital gains tax if it is not your principal residence, and smaller costs like staging, moving, and a mortgage discharge fee.
What is the real estate commission in Ontario?
It is usually 3.5–5% of the sale price, often split as about 2.5% to the buyer's agent and 1–2.5% to the seller's agent. The seller typically pays both, and the commission is also subject to 13% HST.
Do you pay capital gains tax when selling your home?
Only if the home is not your principal residence. Your principal residence is generally exempt. For other properties, 50% of the gain is taxable at your marginal rate under federal rules, so it is worth consulting a tax professional.
Is there HST on real estate commission?
Yes. In Ontario, the real estate commission is subject to 13% HST, charged on the commission amount rather than on the sale price of the home.
Do you need a lawyer to sell a house in Ontario?
Yes. A real estate lawyer is required to close a sale. They verify any mortgages or lines of credit, coordinate with the buyer's lawyer, handle the transfer of funds, and settle the closing adjustments.
About the author
Samantha King is a content writer at Ownright. She writes about the Ontario home-buying and selling process to help people understand what to expect and budget for before they list or close.
At Ownright, we focus on Ontario real estate law and give you your legal and closing costs upfront, so the price you are quoted is the price you pay. You can start your closing online or get in touch with any questions.
Important note: This article is not legal or tax advice. No one should act, or refrain from acting, based solely on the information in this post or any linked materials without first seeking appropriate legal, tax, or professional advice.
