No government sets real estate commissions, and they are negotiable. Industry sources describe a 5% total, shared by the listing and buyer’s agents, as traditional in Ontario, while one industry survey (Payotte) puts the national average total at 4.09%. Here is how 1% and discount listing agents compare to full-service agents, and when each is used.
Discount listing agents charge lower commissions than traditional realtors. For the full purchase sequence, see our home buying process guide.
Commission models in Canada
| Model | Listing Commission | Buyer Agent Commission | Total on $700,000 Home |
|---|---|---|---|
| Traditional full-service | 2.5% ($17,500) | 2.5% ($17,500) | $35,000 + HST |
| 1% listing agent | 1.0% ($7,000) | 2.5% ($17,500) | $24,500 + HST |
| 1.5% listing agent | 1.5% ($10,500) | 2.5% ($17,500) | $28,000 + HST |
| Flat-fee listing | $3,000–$5,000 (flat) | 2.5% ($17,500) | ~$21,000 + HST |
| Flat-fee MLS (mere posting) | $500–$2,000 (flat) | 2.5% ($17,500) | ~$19,000 + HST |
Savings at different price points
| Home Price | Full-Service (2.5%) | 1% Agent | Savings |
|---|---|---|---|
| $400,000 | $10,000 | $4,000 | $6,000 |
| $600,000 | $15,000 | $6,000 | $9,000 |
| $800,000 | $20,000 | $8,000 | $12,000 |
| $1,000,000 | $25,000 | $10,000 | $15,000 |
| $1,500,000 | $37,500 | $15,000 | $22,500 |
| $2,000,000 | $50,000 | $20,000 | $30,000 |
Full-service vs discount: what you get
| Service | Full-Service (2%–2.5%) | 1% Agent | Flat-Fee MLS |
|---|---|---|---|
| MLS listing | ✅ | ✅ | ✅ |
| Professional photography | ✅ | Sometimes | ❌ (you provide) |
| Virtual tour / video | ✅ | Rarely | ❌ |
| Staging consultation | ✅ | Sometimes | ❌ |
| Home staging | Sometimes (agent-funded) | Rarely | ❌ |
| Open houses | ✅ | Sometimes | ❌ |
| Targeted marketing (social media, print) | ✅ | Limited | ❌ |
| Comparable market analysis | ✅ | ✅ | Limited |
| Pricing strategy | ✅ | ✅ | ❌ |
| Offer presentation & negotiation | ✅ | ✅ (may be less hands-on) | ❌ (you handle) |
| Showing management | ✅ | Varies — may use showing service | ❌ (you handle) |
| Closing coordination | ✅ | ✅ | Limited |
| Personalized attention | High (fewer clients) | Lower (higher volume) | None |
When a 1% agent works well
| Scenario | Why 1% May Be Sufficient |
|---|---|
| Hot seller’s market | Homes sell quickly with minimal marketing — less work for the agent |
| Desirable neighbourhood | Buyer demand is high regardless of marketing effort |
| Standard property | 3-bedroom detached, nothing unusual — straightforward sale |
| You’re comfortable with less hand-holding | You can handle some tasks yourself |
| Higher-priced property | The dollar savings are larger ($15,000 or more on a $1 million home) |
| You’ve sold homes before | You understand the process and what to expect |
When full-service is worth the premium
| Scenario | Why Pay More |
|---|---|
| Slow market / buyer’s market | Your property needs maximum marketing effort to attract buyers |
| Unique or difficult property | Rural, luxury, unusual layout, heritage — requires specialized marketing |
| Complex sale | Tenanted, estate, divorce, multiple offers — experienced negotiation matters |
| First-time seller | Guidance through pricing, staging, offers and closing |
| The property needs positioning | Strategic pricing, staging, and timing can add more value than the commission difference |
| Competitive neighbourhood | Multiple listings in your area — differentiation and marketing effort matter |
How 1% agents make money
| Business Model | How It Works |
|---|---|
| Volume | More transactions per agent than a typical agent handles |
| Technology | Automated marketing, virtual showings, digital offer management |
| Team model | Lead agent + showing assistants + transaction coordinators |
| Lower overhead | Smaller or virtual offices, less marketing spend per listing |
| Buyer-side revenue | Many 1% listing agents also work with buyers at full commission |
| Upsell services | Offer premium packages (photography, staging, open houses) for additional fees |
Questions to ask a 1% agent before signing
- What is your track record? — How many homes did you sell last year? In this neighbourhood?
- What services are included at 1%? — Get a detailed written list
- Who handles showings? — Is it you personally or an assistant?
- What marketing do you provide? — Photos, video, social media, print?
- How do you handle multiple offers? — Walk through the process
- What is your average sold-to-list price ratio? — Are your listings selling at or above asking?
- How many active listings do you have right now? — Too many = less attention per client
- Are there additional fees for premium services? — Photography, staging, open houses
- Can I see recent client reviews? — for example, Google reviews
- What buyer agent commission do you recommend? The rate is negotiated and written into the listing agreement
Kinds of discount listing services
| Type | Typical commission | Notes |
|---|---|---|
| Discount brokerage | 1%–1.5% listing | Often technology-driven, in larger cities |
| Flat-fee brokerage | A flat fee plus the buyer agent’s commission | Less hands-on service |
| Local 1% agents | 1%–1.5% | Individual agents in many cities |
Which brokerages operate, and on what terms, changes often and varies by province.
The negotiation approach
You do not have to use a discount brokerage — you can negotiate with a traditional full-service agent:
| Negotiation Strategy | Likelihood of Success |
|---|---|
| Ask for a lower listing commission (e.g., 2% instead of 2.5%) | Moderate — many agents will negotiate on higher-priced homes |
| Volume discount (selling and buying with the same agent) | High — agents often reduce commission for dual transactions |
| Offer a bonus for fast sale or above-asking price | Some agents will accept lower base commission with performance incentives |
| Agree to a longer listing term in exchange for lower commission | Moderate — more time = more certainty for the agent |
| Higher-priced properties ($1M+) | High — agents are more willing to negotiate on larger transactions |
Key takeaways
- The 1% listing commission refers to the listing side only; buyer-agent compensation is separate and also negotiated
- Savings range from $6,000 to $30,000 or more depending on home price
- Quality varies across all commission levels
- Hot markets and standard properties suit discount models best
- Complex, difficult, or luxury properties may benefit from full-service agent expertise
- You can negotiate commission with any agent — it is not a fixed rate
Sources
The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.
- BC Financial Services Authority: Consumer Guide to Remuneration | BCFSA
- nesto: Understanding Real Estate Commissions in Canada - nesto.ca
- Nova Scotia Real Estate Commission: Remuneration - Nova Scotia Real Estate Commission
- Payotte: Real estate commission in Canada (2026): the real numbers by province | Payotte
- Saskatchewan Real Estate Commission: Consumer Information Guide