Ian Charlebois
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SELL · Selling costs
The number that matters is what you walk away with. This guide follows every cost between the sale price and your net proceeds, with the rules that set each one, so there are no surprises at closing.
The costs
Selling costs fall into a few predictable groups. Some are set by contracts you sign, some by your mortgage, and some by how much work the home needs before listing. The costs below follow the order they usually show up.
Your commission is negotiated with your brokerage and written into the listing agreement. RECO says the amount is not fixed or approved by RECO, any government authority or any real estate association, and that it can be a fixed dollar amount, a percentage or both. Ontario’s HST rate is 13%, so ask whether a quoted commission includes HST or adds it on top.
The agreement also states any amount you agree to pay toward the buyer’s brokerage. Check its holdover clause too: RECO notes it can mean you owe commission on a sale that happens after the agreement expires. Ask for the total in dollars at your price.
The FCAC lists legal fees, including the statement of adjustments, as a standard cost of selling. Property tax and utilities are adjusted to the closing date on that statement.
Ask your lawyer for a written quote that separates the fee from disbursements.
You must pay out your mortgage when you sell. If you sell before the end of your term, the FCAC says the penalty is usually the greater of three months’ interest or the interest rate differential (IRD).
Ask your lender for a payout statement for your planned closing date.
Your lender must discharge the mortgage from title when you sell. The FCAC says that where lender fees are not regulated they are typically between no charge and $400, and that professional fees for registering the discharge typically run from $400 to $2,500. Your mortgage contract states the actual amount.
The FCAC lists repairs and renovations, inspection, appraisal, staging and cleaning among the other costs of selling. We tell you which are worth doing before you list and which are not, and which items are better disclosed than fixed.
Moving costs, and any period when you carry two homes, belong in the plan. The FCAC lists moving among the costs of selling. If you are buying as well, we line up the two closing dates and your financing before you list.
Tax
In Ontario the buyer pays land transfer tax when the sale closes and the transfer is registered, so it is not a cost on your side of the statement.
If the home was your principal residence for every year you owned it, the CRA says you generally do not pay tax on the gain. You still report the sale and designate the property on Schedule 3 and Form T2091(IND).
Two cases need care. If you owned the home for less than 365 consecutive days, the CRA’s flipping rule can treat the gain as business income, with exceptions for certain life events. And if part of the home was rented or used for business, the gain on that part can be taxable. Your accountant can confirm which applies.
Your mortgage
For many sellers the biggest surprise is the mortgage penalty, and it is also the one you can plan around. Three questions, in this order:
If it ends soon, selling just after it ends can mean no prepayment penalty at all. The FCAC lists waiting until the end of the term as one option.
If your lender allows porting, you may be able to carry your rate and terms to your next home. Ask for the conditions in writing before you sign anything.
Some mortgages let you prepay a set amount each year without penalty. The FCAC lists using prepayment privileges as a way to reduce the penalty.
Mortgage planning is arranged by my mortgage team: Ian Charlebois, Mortgage Agent Level 1, FSRA Lic. M12001854 · Verico The Mortgage Advisors Inc. o/a The Mortgage Advisors, FSRA Brokerage Lic. 11947.
Mortgages across Canada; real estate across Ontario.
Worksheet
Use your own numbers. We prepare the same estimate for you, in writing, before you list.
Rules checked on October 25, 2026. Sources: RECO, CRA: HST rates, FCAC: selling a home, FCAC: mortgage discharge, FCAC: prepayment penalties, CRA: principal residence, Ontario: land transfer tax. This guide is general information, not legal, tax or mortgage advice.
Questions
Sources are official: RECO, the CRA and the FCAC.
You pay your brokerage under the written listing agreement. The Real Estate Council of Ontario (RECO) says the amount is agreed between you and the brokerage: it isn’t fixed or approved by RECO, the government or any real estate association, and it can be a fixed dollar amount, a percentage or a combination. Your agreement also states any amount you agree to pay toward the buyer’s brokerage. Ask for the total in dollars, with HST, at your expected price.
Ontario’s HST rate is 13%, according to the CRA. Ask whether a quoted commission includes HST or adds it on top, and compare quotes as a total in dollars.
They vary by lawyer and by how complicated the sale is. The Financial Consumer Agency of Canada (FCAC) lists legal fees, including the statement of adjustments, among the standard costs of selling. Ask your lawyer for a written quote that separates the fee from disbursements.
Sometimes you can reduce it. The FCAC points to three options: port your mortgage to your next home if your lender allows it, wait until the end of your term, or use your prepayment privileges. Ask your lender for a payout statement for your planned closing date before you list.
If the home was your principal residence for every year you owned it, you generally do not pay tax on the gain, but you must still report the sale on Schedule 3 and Form T2091(IND). If you owned the home for less than 365 consecutive days, or part of it was rented or used for business, different rules can apply. Your accountant can confirm your situation.