Updated September 2026
When you sell, the sale price isn't what lands in your bank account. Between commission, legal fees and paying out your mortgage, selling costs add up, and the biggest surprises are usually on the mortgage side. Here is what to expect in Ontario, and how to estimate what you'll walk away with.
Real estate commission
Commission is usually the largest cost of selling. It is negotiable, it is set out in your listing agreement, and in most sales it includes what is offered to the buyer's brokerage. HST at 13% is charged on top, so every $10,000 of commission carries another $1,300 of HST.
Ask any agent what their commission includes. At The Polsinello Team, we pay all of the marketing costs: professional photography, a video walk-through, aerial video, laser-measured floor plans, a staging consultation, advertising, print and signage. You pay only for trades, repairs or full staging, and we quote those for your approval before any work starts.
Legal fees
Your real estate lawyer prepares the transfer, pays out your mortgage from the sale proceeds and handles the adjustments with the buyer's lawyer. Ask for a written quote that includes the fee, disbursements and HST.
Paying off your mortgage
This is where sellers are most often surprised. If you break a closed mortgage before the end of its term, your lender charges a prepayment penalty. According to the Financial Consumer Agency of Canada, it is typically the higher of three months' interest and the interest rate differential (IRD). On many variable-rate mortgages, the penalty is three months' interest.
To put that in numbers, three months' interest on a $400,000 balance at 5% is $5,000. An IRD penalty on a fixed-rate mortgage can be much higher. Lenders may also charge administration or discharge fees.
Ways to reduce the cost:
Port your mortgage to your next home, if your lender allows it.
Time your sale close to your renewal date, when there is no penalty.
Use your prepayment privileges before you sell.
Ask your lender for a payout statement early, before you set your list price, so there are no surprises.
Getting the home ready
Repairs, painting, cleaning, landscaping and storage are the usual pre-sale costs, along with full staging if you choose it. Spend where buyers will notice, and fix anything a home inspector would flag. Our home maintenance checklist is a good place to start.
Moving and closing day
Budget for movers, and if you are buying before you sell, for bridge financing between the two closings. Utilities are closed out with final meter readings.
Selling a condo?
The buyer usually orders the status certificate, which can cost no more than $100 including taxes, but some sellers order one before listing so it is ready. Condo fees are adjusted on closing.
Tax
When you sell your principal residence, the principal residence exemption generally means no capital gains tax for the years it was your principal residence, but you still have to report the sale on your tax return. Rental and investment properties are different, and capital gains tax may apply. If you are not a resident of Canada, special withholding rules apply. Talk to your accountant and lawyer early.
Estimating what you'll walk away with
Start with your expected sale price, then subtract:
commission and HST
legal fees and disbursements
your mortgage balance, plus any penalty and discharge fees
repairs, staging and moving costs
What's left is your net proceeds. The biggest number in that calculation is the price, so start with an accurate one: read how a comparative market analysis works, or get a quick estimate at MyValue.ca.
Talk to us
We have been selling homes across York Region, Simcoe County and Durham since 1989. Call us at (905) 830-9111 for a walkthrough of your numbers, or read about how we sell homes.
