Ontario Real Estate Commission
The standard real estate commission in Ontario is 5% of the home’s sale price, split evenly between the listing agent and the buyer’s agent. Ontario’s commission rate is among the most straightforward in Canada — a flat percentage applied to the entire sale price, unlike the tiered structures used in provinces like British Columbia or Alberta.
Ontario is also Canada’s most active real estate market. According to the Canadian Real Estate Association (CREA), Ontario accounts for roughly 40% of all home sales in the country, making commission structures here a significant financial consideration for hundreds of thousands of sellers every year.
How Ontario Real Estate Commission Is Calculated
Ontario uses a flat commission structure: a single percentage applied to the full sale price.
Formula: Sale Price × Commission Rate = Total Commission
| Sale Price | Commission (5%) | HST (13%) | Total Cost | Per Agent (2.5%) |
|---|---|---|---|---|
| $400,000 | $20,000 | $2,600 | $22,600 | $10,000 |
| $500,000 | $25,000 | $3,250 | $28,250 | $12,500 |
| $600,000 | $30,000 | $3,900 | $33,900 | $15,000 |
| $700,000 | $35,000 | $4,550 | $39,550 | $17,500 |
| $800,000 | $40,000 | $5,200 | $45,200 | $20,000 |
| $1,000,000 | $50,000 | $6,500 | $56,500 | $25,000 |
| $1,200,000 | $60,000 | $7,800 | $67,800 | $30,000 |
| $1,500,000 | $75,000 | $9,750 | $84,750 | $37,500 |
The HST in Ontario is 13% (5% federal GST + 8% provincial portion). It is applied on top of the commission and paid by the seller.
Ontario Commission by City
While 5% is the standard province-wide, effective rates can vary by local market conditions and property values:
| City / Region | Typical Rate | Avg. Home Price (2025) | Typical Commission | Notes |
|---|---|---|---|---|
| Toronto | 5% | ~$1,060,000 | ~$53,000 | High value means agents may negotiate |
| Ottawa | 5% | ~$650,000 | ~$32,500 | Stable rates |
| Hamilton | 5% | ~$760,000 | ~$38,000 | Growing market |
| Mississauga | 5% | ~$930,000 | ~$46,500 | GTA suburb pricing |
| Brampton | 5% | ~$900,000 | ~$45,000 | GTA suburb pricing |
| London | 5% | ~$550,000 | ~$27,500 | Smaller market |
| Kitchener-Waterloo | 5% | ~$680,000 | ~$34,000 | Tech corridor growth |
| Barrie | 5% | ~$650,000 | ~$32,500 | North GTA commuter belt |
| Kingston | 5% | ~$530,000 | ~$26,500 | Smaller market |
| Windsor | 5% | ~$480,000 | ~$24,000 | Cross-border market |
| Thunder Bay | 5% | ~$300,000 | ~$15,000 | Northern Ontario pricing |
In the Greater Toronto Area, where home prices regularly exceed $1 million, sellers occasionally negotiate commission down to 4% or even 3.5%. Agents may agree because the dollar amount remains significant — 4% on a $1.2 million home is still $48,000.
How Ontario’s Commission Compares to Other Provinces
Ontario’s flat 5% structure differs from the tiered systems used in Western Canada:
| Province | Commission Structure | Commission on $700,000 Home |
|---|---|---|
| Ontario | 5% flat rate | $35,000 |
| British Columbia | 7% on first $100K, 2.5% on balance | $22,000 |
| Alberta | 7% on first $100K, 3% on balance | $25,000 |
| Saskatchewan | 6%/$100K, 4%/$100K, 2% balance | $20,000 |
| Manitoba | 5% flat rate | $35,000 |
| Quebec | 5% flat rate | $35,000 |
Ontario sellers pay among the highest total commissions in Canada because the flat 5% applies to the entire sale price. On a $700,000 sale, an Ontario seller pays $35,000 versus $22,000 in BC or $25,000 in Alberta, where tiered structures reduce the effective rate on higher-value properties.
How to Reduce Commission Costs in Ontario
1. Negotiate the rate directly
Ontario agents are not bound to any fixed commission rate. If your property is in a desirable location — especially in the GTA — or priced above $800,000, you have leverage to negotiate. Many agents will accept 4%–4.5% on higher-value properties.
2. Use a discount brokerage
Several Ontario-based discount brokerages offer reduced commission rates:
- 1% listing fee models: The listing agent charges 1%–1.5% instead of the standard 2.5%, while the buyer’s agent still receives the standard cooperating commission.
- Flat-fee MLS listings: Services like PropertyGuys or FlatFee.ca allow you to list on MLS for a flat fee (often $500–$2,000) and handle your own showings and negotiations.
Be aware that reducing the cooperating commission offered to buyer’s agents (below 2.5%) may reduce the number of agents showing your property.
3. Sell privately (For Sale By Owner)
Selling without any agent in Ontario eliminates the 5% commission entirely. However, if the buyer has an agent, you may still need to offer 2.5% cooperating commission. FSBO works best for sellers who are comfortable with pricing, marketing, negotiations, and legal paperwork.
4. Consider a mere posting or limited-service listing
A mere posting places your property on MLS (through a licensed brokerage) for a flat fee, giving you exposure to the full MLS-connected buyer pool without paying a full listing agent’s commission. You handle showings and negotiations yourself.
Ontario Real Estate Regulation
Ontario’s real estate industry is regulated by the Real Estate Council of Ontario (RECO) under the Trust in Real Estate Services Act, 2002 (TRESA). Key points for sellers:
- Commission rates are not regulated — they are negotiated between the seller and agent.
- All commission agreements must be in writing as part of the listing agreement.
- TRESA (effective December 2023) increased transparency by allowing open offers — sellers can now choose to disclose competing offer details to all bidders.
- Agents must disclose all material facts and any conflicts of interest.
- Dual agency (representing both buyer and seller) requires written, informed consent from both parties.
Costs Beyond Commission When Selling in Ontario
Commission is the largest cost, but not the only one. Here is the full picture for Ontario sellers:
| Cost | Typical Amount | Notes |
|---|---|---|
| Real estate commission | 5% of sale price | Plus 13% HST |
| Legal fees | $1,000–$2,500 | Real estate lawyer required |
| Mortgage discharge fee | $200–$400 | If applicable |
| Title insurance | $300–$500 | If applicable |
| Home staging | $2,000–$5,000 | Optional, common in GTA |
| Minor repairs / prep | $1,000–$5,000 | Paint, cleaning, small fixes |
| Moving costs | $1,000–$3,000+ | Distance-dependent |
| Capital gains tax | Varies | Only if not your principal residence |
Use our closing costs calculator to estimate the full cost of your transaction.
Worked Example: Selling a $750,000 Home in Ontario
Here is a complete breakdown for a typical Ontario home sale:
| Item | Amount |
|---|---|
| Sale price | $750,000 |
| Remaining mortgage | -$350,000 |
| Agent commission (5%) | -$37,500 |
| HST on commission (13%) | -$4,875 |
| Legal fees | -$1,800 |
| Mortgage discharge | -$300 |
| Net proceeds to seller | $355,525 |
Related Pages
- Real Estate Commission Calculator (All Provinces) — Compare rates across Canada
- Ontario Closing Costs — Estimate full transaction costs
- Ontario Housing Market — Current market conditions
- Ontario Mortgage Rates — Today’s best rates
- Ontario Property Tax — Tax rates by city
- Ontario Land Transfer Tax — Calculate your LTT
- Ontario Income Tax — Provincial tax brackets
- How Much Do Real Estate Agents Make — Agent earnings