# How Much Does It Cost to Sell a House in Ontario? A Guide for Brampton Sellers

- Author: Manjinder Singh, Broker, RE/MAX Gold Realty Inc., Brokerage
- Published: 2026-10-18
- Updated: 2026-10-18
- Category: Selling
- Topics: cost to sell a house in Ontario, sell my house in Brampton, real estate commission, HST on commission, mortgage prepayment penalty, land transfer tax, closing costs, net proceeds
- Canonical URL: https://about.manjindersingh.com/insights/cost-to-sell-a-house-in-ontario/

## In short

Selling a house in Ontario usually means a negotiated commission plus 13% HST on it, legal fees and disbursements, any mortgage prepayment penalty and discharge fee, and your own preparation and moving costs. Your buyer pays the land transfer tax. I plan every sale around the cheque you keep, not the headline price, and I get every cost in writing before you list.

Selling a house in Ontario costs you a commission you negotiate, 13% HST on that commission, legal fees and disbursements, any mortgage penalty and discharge fee, and your own preparation and moving costs. Your buyer pays Ontario's land transfer tax. No regulator sets these amounts for you, so get every one of them in writing before you list.

Your total depends on your agreement with the brokerage, your mortgage contract, your lawyer's quote and how much work the house needs. I'll walk you through each cost, who sets it and which ones the law requires. First, though, the number that matters more than any single fee.

## Plan around the cheque, not the headline price

The economist Richard Thaler described **mental accounting** in a 1985 paper: people sort money into separate mental accounts and judge each one on its own. Sellers do this with a house. The sale price sits in one account and gets all the attention. Commission, HST, the mortgage penalty and the movers sit in other accounts, and they surface on closing day.

I build every pricing conversation around one number: what reaches you after closing. Two homes can sell for the same price and leave their owners with very different amounts, depending on the mortgage, the agreement and the move. The headline price is what your neighbours hear about. The cheque is what pays for your next home.

[[figure:sale-price-to-net]]

Then plan for things to run late. Repairs run over. Movers book up. Closing dates drift out of line. It happens to careful people every season. RECO suggests a contingency plan in case your sale and purchase closing dates "don't match up" ([RECO](https://www.reco.on.ca/consumers/information-for-sellers/sellers-checklist/)). I'd also keep a cash cushion in your estimate, because a surprise you planned for stops being a surprise.

## What you control, and what you don't

You can't set the HST rate. You can't set interest rates. You can't rewrite your lender's penalty formula.

You can negotiate the commission. You can compare lawyers' quotes. You can ask your lender about porting, choose your timing and decide which repairs are worth doing. Spend your energy on that second list. That's where I spend mine.

## Real estate commission: negotiable, not fixed

Commission is the largest cost for most sellers who use a brokerage, and you set it by agreement. RECO tells consumers: "You and the brokerage decide the amount you will pay for services," and "the amount is not fixed or approved by RECO" ([RECO](https://www.reco.on.ca/consumers/things-you-need-to-know/signing-a-contract-with-a-real-estate-brokerage/)).

The Trust in Real Estate Services Act, 2002 sets the form commission can take, as RECO summarises ([RECO](https://www.reco.on.ca/news/concerns-about-steering-based-on-commission)):

- remuneration must be "an agreed amount or percentage", or a combination;
- a percentage "does not have to be fixed" and can be a series of percentages that decrease as the price rises;
- an agent cannot arrange to be paid based on the difference between the listing price and the sale price.

Your listing agreement also sets out what, if anything, you will offer to the buyer's brokerage. RECO warns buyers that "a seller might not offer any amount to cover the fees you owe to your brokerage", which tells you this is a choice made in the agreement. Ask each agent to explain the total commission, how it would be shared, and the services included.

### Why the fee feels bigger than it is

A commission arrives as a line on a statement with a dollar sign in front of it. It feels like money taken out of your hand. The price feels different, like a number you already own. That feeling points your attention at the wrong line.

Here's the arithmetic. Brampton's average sale price in September 2026 was $854,322 ([TRREB Market Watch, September 2026](https://trreb.ca/hlfiles/pdf/mw_september_2026_564895214753249.pdf)). On a hypothetical home at that price, selling just 2% below what it could have fetched costs about $17,000. A mispriced listing that sits, goes stale and settles lower can cost you more than any difference in commission you'll ever negotiate.

You might think the cheapest commission makes the cheapest sale. Not if the price slips. So negotiate the commission and compare what each fee buys. Then give the pricing decision at least as much of your attention. When I sit down with sellers, the fee is part of the conversation from the start. One seller wrote on RankMyAgent that I explained the pricing strategy, the best time to list, "as well as all the services included in the commission fee." That's the conversation you should have with every agent: what does the fee buy?

### Two commission terms that can cost money later

- **Holdover clause.** RECO warns that "a holdover clause could mean you owe money even after the expiry of the agreement." Agree to its length before you sign.
- **Cancellation terms.** The agreement should list every circumstance in which it can be terminated. RECO advises you to "make sure you are aware of any penalties or costs that might apply in each case."

## HST on commission: 13% in Ontario

The Canada Revenue Agency says a registered real estate agent "has to charge and remit GST/HST on their commission" ([CRA](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-special-cases.html)). The HST rate in Ontario is 13% ([CRA](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html)).

A hypothetical example: if your commission worked out to $20,000, HST would add $2,600, for $22,600 in total. Compare agents on the totals including HST.

## Legal fees and disbursements

RECO's seller's checklist tells sellers to budget for selling costs such as commissions, legal fees and moving expenses, noting that "there are closing costs associated with selling a home" ([RECO](https://www.reco.on.ca/consumers/information-for-sellers/sellers-checklist/)). RECO also suggests consulting a lawyer who is insured to practise real estate law if you're unsure about any part of your agreement.

Lawyers quote a fee plus disbursements, which are the out-of-pocket costs they pay on your behalf. Ask for a written quote that lists both, plus HST, before you accept an offer.

## Mortgage costs: prepayment penalty and discharge fee

If you have a mortgage, selling usually means paying it off before the end of its term. The Financial Consumer Agency of Canada (FCAC) says a lender may charge a prepayment penalty when you pay off the mortgage early, "including when you sell your home" ([FCAC](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html)).

- **How the penalty is calculated.** The FCAC says it is usually the higher of three months' interest or the interest rate differential (IRD), and that methods vary by lender. Ask your lender for the figure before you list, not after you've signed.
- **Porting.** If you're buying another home, ask whether you can port the mortgage, taking your rate and terms with you, which the FCAC says "saves you from breaking your mortgage contract."
- **Discharge fee.** Where provincial law does not regulate it, the FCAC says the lender sets its own fee, which "typically ranges from no charge, up to $400," and federally regulated lenders such as banks "must disclose the mortgage discharge fee in your mortgage contract" ([FCAC](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/mortgage-discharge.html)). The FCAC adds that professional fees for a lawyer, notary or commissioner of oaths "are typically between $400 and $2,500."

## Land transfer tax: your buyer pays it

Ontario's land transfer tax is paid by the purchaser. The Government of Ontario says: "When you buy land or an interest in land in Ontario, you pay Ontario's land transfer tax," and it is paid "to the province when the transaction closes" ([Ontario.ca](https://www.ontario.ca/document/land-transfer-tax)). It doesn't come out of your proceeds, but it does affect how much cash your buyer needs to close.

## Preparation, moving and carrying costs

These depend on your home and your plans. Common items include:

- repairs, painting and cleaning before photos;
- staging, if you choose it and it isn't included in your agreement;
- storage and moving;
- carrying costs if you buy before you sell, such as two sets of property taxes and utilities, or bridge financing;
- copies of City records for your home. Brampton's Building Division may hold surveys, drawings, permit cards and final inspection certificates, and responds to requests "within 5 business days" ([City of Brampton](https://www.brampton.ca/EN/residents/Building-Permits/homeowners/Pages/BuildingRecords.aspx)). Fees apply.

A word about renovations before you sell. Buyers pay for the house as it stands and as the comparable sales value it. Before you spend on a new kitchen or a finished basement, ask your agent which recent sales show buyers paying for that kind of work. And once money is spent, leave it out of your pricing decision. The receipt doesn't come with the house.

## Selling a home with tenants

If you are selling a tenanted property and the buyer intends to move in, Ontario rules require the landlord to give the tenant compensation equal to one month's rent, or offer the tenant another unit, unless the landlord gives at least 120 days' notice ([Ontario.ca](https://www.ontario.ca/page/renting-ontario-your-rights)). The notice must be on the Landlord and Tenant Board's form, and a tenant does not have to move out without an eviction order. Get legal advice before agreeing to deliver vacant possession.

## Taxes on the sale itself

The principal residence exemption generally means no tax on the gain for each year the home is designated as your principal residence, but you still have to report the sale. The CRA says individuals "will have to report the sale on Schedule 3" of their return, and for sales in 2017 and later must also complete Form T2091 ([CRA](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2016-growing-middle-class/reporting-sale-your-principal-residence-individuals.html)). If the home wasn't your principal residence for every year you owned it, speak to an accountant.

## Which costs are required?

- **Required by law:** HST on any commission you pay, and tax reporting of the sale.
- **Required by contract:** whatever commission and terms you agree to in a listing agreement, and whatever your mortgage contract says about prepayment and discharge.
- **Your choice:** whether to use a brokerage at all, what services you buy, staging, repairs and how you move.

## Know your number before you sign anything

Picture closing day. The lawyer calls, the keys change hands, and the amount that lands in your account is the amount you expected, almost to the dollar. No surprise penalty. No forgotten fee. Just relief, and a clear run at your next home.

That's what planning around the cheque buys you. I've been licensed since 2003, and I'd rather tell you the hard numbers at the start than let closing day tell you at the end. One client wrote on RankMyAgent: "Manjinder was honest and provided us with realistic feedback and expectations." On RankMyAgent, I hold a 4.99 out of 5 rating across 282 verified reviews, as of October 2026.

## Common questions

### How much does it cost to sell a house in Brampton?

There is no standard amount. The main costs are the commission you negotiate with your brokerage, 13% HST on that commission, legal fees and disbursements, any mortgage prepayment penalty and discharge fee, and moving and preparation costs. Ask each agent and your lawyer for written figures, add them up, and plan around your net proceeds.

### Is real estate commission negotiable in Ontario?

Yes. RECO says the seller and the brokerage decide the amount, and it is "not fixed or approved by RECO." The law requires it to be an agreed amount or percentage, and it cannot be based on the difference between the listing and sale prices.

### Do sellers pay land transfer tax in Ontario?

No. Ontario's land transfer tax is paid by the buyer when the purchase closes. It affects how much cash your buyer needs, but it doesn't come out of your proceeds.

### Do I pay HST on real estate commission in Ontario?

Yes. The CRA says a registered real estate agent must charge and remit GST/HST on their commission, and the HST rate in Ontario is 13%.

### Will I pay a penalty for breaking my mortgage when I sell?

Possibly. The FCAC says lenders may charge a prepayment penalty when you pay off a mortgage early, including when you sell, usually the higher of three months' interest or the interest rate differential. Ask your lender for the exact amount, and ask whether you can port the mortgage to your next home.

## Key takeaways

- Plan around your net proceeds; the sale price is only the starting point.
- Commission is negotiated with the brokerage and is not fixed or approved by RECO. HST at 13% applies to it.
- Get written figures for legal fees, disbursements and any mortgage penalty and discharge fee, and keep a cushion for surprises.
- Ontario land transfer tax is paid by the buyer, not the seller.
- Money already spent on the house shouldn't set your price; recent comparable sales should.

Your neighbours will hear the headline price. You'll live on the cheque. For a written estimate of the costs on your own sale, [contact me](https://about.manjindersingh.com/contact/).

## Sources

1. [Signing a contract with a real estate brokerage](https://www.reco.on.ca/consumers/things-you-need-to-know/signing-a-contract-with-a-real-estate-brokerage/), Real Estate Council of Ontario (RECO). Accessed 2026-10-18.
2. [Concerns about steering based on commission](https://www.reco.on.ca/news/concerns-about-steering-based-on-commission), Real Estate Council of Ontario (RECO). Accessed 2026-10-18.
3. [Seller's checklist](https://www.reco.on.ca/consumers/information-for-sellers/sellers-checklist/), Real Estate Council of Ontario (RECO). Accessed 2026-10-18.
4. [GST/HST in special cases (real estate agents)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-special-cases.html), Canada Revenue Agency. Accessed 2026-10-18.
5. [GST/HST calculator (and rates)](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate/calculator.html), Canada Revenue Agency. Accessed 2026-10-18.
6. [Land transfer tax](https://www.ontario.ca/document/land-transfer-tax), Government of Ontario. Accessed 2026-10-18.
7. [Mortgage fees: Prepayment penalties](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/reduce-prepayment-penalties.html), Financial Consumer Agency of Canada (FCAC). Accessed 2026-10-18.
8. [Discharging a mortgage](https://www.canada.ca/en/financial-consumer-agency/services/mortgages/mortgage-discharge.html), Financial Consumer Agency of Canada (FCAC). Accessed 2026-10-18.
9. [Reporting the sale of your principal residence for individuals (other than trusts)](https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2016-growing-middle-class/reporting-sale-your-principal-residence-individuals.html), Canada Revenue Agency. Accessed 2026-10-18.
10. [Renting in Ontario: your rights](https://www.ontario.ca/page/renting-ontario-your-rights), Government of Ontario. Accessed 2026-10-18.
11. [Building records](https://www.brampton.ca/EN/residents/Building-Permits/homeowners/Pages/BuildingRecords.aspx), City of Brampton. Accessed 2026-10-18.
12. [Mental Accounting and Consumer Choice (Thaler, 1985), Marketing Science 4(3), 199-214](https://doi.org/10.1287/mksc.4.3.199), INFORMS. Accessed 2026-10-18.
13. [Market Watch, September 2026](https://trreb.ca/hlfiles/pdf/mw_september_2026_564895214753249.pdf), Toronto Regional Real Estate Board (TRREB). Accessed 2026-10-18.
14. [Manjinder Singh: reviews, rating and awards](https://rankmyagent.com/manjindersingh), RankMyAgent. Accessed 2026-10-18.

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