While you’re likely already aware that the cost of selling a house can be pretty expensive, the cost could be more than you expect when you factor in that the general consensus is that your selling costs in Canada can range from 6% to 10% of your home’s sale price. As of July 2026, the average home sold price across Canada was $696,078, so someone selling at this price point could expect to pay between $41,764.68 to $69,607.80 in fees.
It’s important to remember that net proceeds are more important than the gross sale price. There’s a huge difference between what you sell your home for and what you actually receive in your bank account when the dust settles, as the hidden costs of selling a home could make a huge dent. When you’re prepared for these house-selling fees, you can better calculate your potential net proceeds in advance.
Key Takeaways
- Real estate commissions is typically the largest expense when you sell your home
- Mortgage prepayment penalties can add up to thousands of dollars, depending on your terms
- You can save on house selling fees by selling your own home or negotiating with your real estate agent
Real Estate Agent Commissions: The Largest Selling Fee
The highest cost of selling a home is usually the real estate commissions. Real estate commission fees are usually between 3% and 5% of the selling price, plus sales tax, split between the seller’s agent and the buyer’s agent. However, the typical commission structure varies by province.
How Realtor Commissions Work Across Provinces
Some provinces change a graduated percentage, while others charge a fixed percentage, regardless of the sale price. For instance, in Ontario, the Realtor fees are usually 5% of the sale price. This means if you sell a home in Ontario at the average price of $831,595, you would pay $20,790 to both agents, bringing your total realtor costs to $41,580 before tax. In BC, you typically pay 7% on the first $100,000 of the sale price and 2.5% on the remainder, meaning that on an average home price of $946,878, the Realtor fees would be a total of $28,172 before tax.
Keep in mind that the typical commission rates may vary by region, especially in rural areas.
Are Real Estate Fees Negotiable or Taxable?
Real estate commissions are not fixed and are legally negotiable across Canada. Therefore, you can shop around for a lower rate or negotiate with an agent you want to work with.
It’s also important to stress that sales taxes apply to real estate commission fees. You will have to pay HST or GST on top of the commission, depending on where you live. In Ontario, you’ll pay 13% HST, while in BC or Alberta, you will pay 5% GST. These taxes will be added to your total commission bill at closing.
Legal Fees & Closing Costs for Canadian Sellers
A real estate lawyer or notary is mandatory in Canada to transfer property title, handle payout funds, and settle local tax adjustments. Your lawyer will prepare a detailed statement of adjustments that explains how much you owe at closing after calculating the land transfer tax, property tax adjustments, and other closing expenses.
Your real estate lawyer will also prepare and review purchase agreements to ensure that your interests as a seller are protected. They will proactively look into any potential legal issues, such as a lien or an encroachment. They may charge extra fees if there’s a complex scenario or if they have to resolve liens.
Here are some of the main duties of a real estate lawyer:
- Contract review
- Clearing encumbrances/title issues
- Completing the title search
- Paying off your outstanding mortgage balance and disbursing mortgage funds
- Preparing the Statement of Adjustments
- Taking care of government registration fees
The average cost of base legal fees ranges from $500 to $2,500, depending on purchase price, location, and the complexity of the transaction. You may also have to pay for standard disbursements (title search, land registry filings, and courier fees), which are the expenses that the lawyer pays on your behalf.
The Hidden Costs of Selling a Home Most Owners Forget
If you’re looking to list your house in the near future, it’s crucial that you learn about the hidden costs of selling a home, because there are numerous non-obvious and unexpected expenses that could pop up.
Mortgage Prepayment Penalties & Discharge Fees
If you sell before the term of your mortgage is up, you’re going to have to add mortgage prepayment penalties to the cost of selling a house. The standard penalty for breaking a variable-rate mortgage is three months of interest payments. Breaking a fixed-rate mortgage early can cost thousands because you pay the higher of 3 months’ interest or the Interest Rate Differential (IRD). The IRD will look at your current rate and today’s rates to see if rates have changed since you obtained your mortgage. This could be a surprisingly hefty fee.
To emphasize the significance of the possible penalty, an IRD penalty at a major Canadian bank for a $500,000 mortgage at mid-term can be anywhere from $10,000 to $25,000, depending on how much interest rates have changed.
If you’re paying off your mortgage early, you could also be hit with a lender discharge/administrative fee, which could cost between $200 and $400. Therefore, it’s important that you check with your lender to review your mortgage term and penalties before selling.
Condo Status Certificates (If Applicable)
If you’re selling a condo, you may need to pay for condo documents to provide to buyers. The standard fee for a status certificate is $100 to $200, which covers the condo management company’s or board’s expenses to gather the required financial information about the unit’s status.
Other Potential Closing Costs
If you are also buying a home at the same time, you will also need to pay buyer-related closing costs like land transfer taxes, home appraisal fees, home inspection fees, property tax and utility adjustments, and others. While these costs are not directly related to selling, they are additional costs that could affect the net profits from your sale.
Capital Gains Tax Considerations
While primary homes in Canada are exempt from capital gains tax, you have to anticipate capital gains taxes when selling an investment property, vacation home, or a partial rental. The inclusion rate for capital gains is 50%, meaning that you only need to pay capital gains on half of your profit. These taxes are not paid at closing. Instead, you will report the capital gains on your income tax return and be taxed at your marginal tax rate.
Pre-Sale Home Preparation & Staging Expenses
There are hidden costs of preparing a home for sale, and potentially to drive up the sale price. While home preparation and staging can increase the net sale price, they require an upfront investment that may surprise most people. These are out-of-pocket expenses that you want to be aware of so that you’re not stressed financially when you get the bill.
Repairs, Deep Cleaning, and Touch-Ups
Canadian sellers will spend an average of $6,000 on home improvements before listing their properties. Cleaning services can cost anywhere from $150 to $300, depending on the size. The average cost to paint your home’s interior could be between $2,000 and $5,000. Minor repairs could set you back $500 to $3,000. Moreover, you may also want to spend $300 to $600 on a home inspection to get ahead of any required maintenance before the buyer makes any requests.
Professional Staging & Photography
Professional staging and photography can boost your home’s appeal and drive up the final sale price, but these services also require upfront cash.
- Professional photography can range from $200 to $500, or more, depending on the size, location and number of images. Some real estate agents include photography in their commission price
- Professional staging can cost between $2,000 and $5,000
- Virtual staging can cost between $300 and $800 for high-quality images
- Partial staging could range from $500 to $2,000, depending on how many rooms you want to include
Moving & Storage Costs
Moving costs vary depending on whether you plan to do it yourself or hire professional movers. According to HomeStars, you can expect to spend anywhere from $600 to $1,700 for a local move in Canada, with prices fluctuating based on home size, service level, and distance of the move. However, if you’re moving across the country, it could cost $6,000 or more.
If you end up with too many items and have to rent a storage unit, it can cost you between $100 and $300 per month. You might also encounter random hidden costs while selling your house, like booking a hotel room for the night or compensating friends who help you move.
Ways to Reduce the Cost of Selling a Home
The good news is that you can reduce the cost of selling a home because prices aren’t set in stone. You have the following options:
- Negotiate real estate commissions – You can negotiate with your real estate agent to bring the commission down
- Sell your own home – You can consider the FSBO route to avoid real estate commissions if you have the time and experience to handle everything on your own
- Do repairs and cleaning yourself – You can complete small, high-ROI repairs yourself to help increase your home’s appeal without breaking the bank
- Stage digitally – You can stage digitally to lower staging fees
Summary: Canadian Home Selling Cost Cheat Sheet
Bottom Line
Before you list your home, it’s important to review the full cost of selling, as it will directly impact how much profit lands in your pocket. You may find that when you factor in the hidden costs of selling a home, such as mortgage prepayment penalties, it may not be the right time to move.
Start by getting a home valuation and contacting your mortgage lender for a payout statement. Then, connect with one of Zolo’s expert real estate agents, or consider selling your own home.
House Selling Fees FAQs
Do sellers pay land transfer tax in Canada?
No, buyers pay land transfer tax, not sellers. However, sellers are responsible for real estate commissions, legal fees, and other closing costs.
How much cash do I need upfront to sell my house?
Your final sale proceeds cover closing costs directly, so you need very little cash on hand when selling your home. However, you will need cash to pay upfront for home preparation, such as minor repairs, professional cleaning, staging, and moving costs.
How can I avoid paying a mortgage prepayment penalty when selling?
To avoid paying a mortgage prepayment penalty when selling your home, you could time the sale to align with your mortgage renewal date, port your current mortgage to your new home, or sell a home with an open mortgage.
Do I have to pay sales tax (GST/HST) when selling my house?
You do not pay GST/HST on the total sale price of a used residential home. However, sales taxes do apply to services associated with the sale, such as real estate commissions, legal fees, staging, and moving services.
Is selling a house without an agent (FSBO) cheaper in Canada?
Selling your home yourself saves on the listing agent commission, which could be 2% to 2.5% of the sale price. However, you still typically need to offer a buyer’s agent commission to attract buyers.
