Selling a home always comes with additional expenses such as closing costs and lawyer fees, but many people are surprised to learn that Realtor fees are often the largest expense. Now, keep in mind that your Realtor takes on several roles during the process and provides multiple services, including marketing, negotiation, paperwork, and representation, all of which play an important role in the sale of your home.
In Canada, real estate agents typically walk away with somewhere between 3% to 5% of the property’s final sale price, which can add up pretty quickly. Of course, this depends on the region and the service structure, which vary across the country. However, if you are selling a house soon, here’s what you should know about Realtor fees in Canada.
Key Takeaways
- Realtor fees are typically a percentage of the home’s sale price, or they could be a fixed dollar amount or a combination of both
- Real estate fees vary across the country, as Canada’s Competition Act prohibits standard commission rates
- Sellers typically pay both the seller and buyer agents’ commission
How do Real Estate Agent Commissions Work in Canada?
Real estate commission fees vary across the country, but there are a few commonalities.
- The Split – There are typically two agents involved in a real estate transaction. The listing agent, who represents the seller and the buyer’s agent, who represents the buyer. The commission is typically split between the two.
- Applicable Taxes – Canadian taxes are in addition to the commission rate. If the real estate commission is 5% of the home’s selling price, tax will be charged on top of that price. The tax charged (GST, HST, or QST) depends on the province where the sale takes place.
- Standard Flat Percentage vs. Tiered Models – Commission structures vary and can be flat percentage, tiered, or flat price. With a flat percentage, the rate is fixed, regardless of the sale price. With a tiered model, there is a higher percentage commission on the initial property value, then a lower percentage on the remaining balance. Tiered models are more common in Western Canada.
Realtor fees are negotiable in Canada, meaning you can ask your real estate professional to change their commission rate. Options include paying a fixed dollar amount instead of a percentage, or a combination of both. You can also negotiate the services provided. For instance, you could provide your own photography or staging.
If you want to know exactly how much you could pay when you sell your property, use a real estate fee calculator, which takes into account the commission and taxes for your location.
Realtor Fees Breakdown by Province
Typical Realtor fees vary by province across Canada. It’s worth noting that real estate commissions may be different in rural areas compared to cities, and costs can vary by property type.
Realtor Fees in BC
BC real estate commission often follows a tiered structure, but Realtors set their own commission rates in British Columbia. Typically, the first $100,000 of the home sale will incur a commission rate of 7%. The remaining balance of the sale price will fall between 2.5% and 3%. In addition, there are also taxes, which in British Columbia is 5% GST.
For example, a home that sells for $1,000,000 in Vancouver, British Columbia, the Realtor fees could be:
- 7% on $100,000= $7,000
- 2.5% on the remaining 900,000 = $22,500
- Total commission = $29,500 (+1,475 GST)
Alberta Realtor Fees
Like British Columbia, Alberta typically follows a tiered model: 7% on the first $100,000, then 3% on the remaining balance. While this is the most common commission model province-wide, flat percentage models are becoming more popular in some regions (mainly Calgary and Edmonton). In these situations, the flat rate is 4% to 5%. Again, GST (5% in Alberta) will be charged on top of either of these structures.
For example, a home that sells for $500,000 in Alberta, the Realtor fees could be:
- 7% on $100,000 = $7,000
- 3% on the remaining $400,000 = $12,000
- Total Commission = $19,000 (+ $950 GST)
Ontario Realtor Commission
Ontario usually follows a flat percentage model, typically between 3.5% and 5% of the home’s total sale price. On top of that is the Ontario sales tax, which is HST at 13%.
For example, a home that sells for $800,000 in Ontario with a 5% commission rate, the total commission fees will be:
- 5% of $800,000 = $40,000
- Total commission = $40,000 (+ $5,200 HST)
Who Pays Real Estate Agent Fees in Canada?
In Canada, the standard model is that the home seller pays the total commission fees to both the buyer’s and seller’s real estate agents from the proceeds of the sale. Typically, the commission is split between the two agents and is paid by the seller’s lawyer after closing.
As a home buyer, a real estate agent’s service is typically viewed as being free, but the truth is it’s not, as the buyer agent commission is usually built into the purchase price of the home. There are rare circumstances where a buyer may be on the hook for agent fees, especially when buying an off-market property or a private sale where the seller isn’t offering any agent commission. These fees are outlined in your buyer representation agreement, so it’s essential to read your agreement carefully before you sign.
Alternatives to Traditional Commission Models
At a glance, 3% to 5% of the sale price may not seem like a large amount, but that percentage can add up to quite a lot of money, especially with the cost of homes averaging $674,819 in July 2026. While Realtors do a lot of work and deserve to be paid, there are a few ways to save on real estate commissions compared to the traditional model.
- 1% or Low-Commission Brokerages – There are discount real estate agents who will work for a 1% commission. While, at a glance, this may seem like a great deal, keep in mind that what they offer for their services may not be the same as what a traditional Realtor may offer. Also, note that the 1% is just their portion; the buyer’s agent will still expect a cut, so the real commission you should expect in this arrangement is closer to 3% to 3.5% of the final sale price, and other costs may still apply.
- Flat-Fee Listing Services – This option lets you list your home on MLS® for a flat fee instead of paying a percentage commission at the end when your home sells. Fees vary depending on the package you choose, but can be as low as $500. Once you have an interested buyer, it is also up to you, as the seller, to handle all aspects of the sale.
- For Sale By Owner (FSBO) – In this scenario, the seller of the house takes on the role of the Realtor. However, there will still be some costs you need to budget for, including advertising, marketing, MLS® access (if desired), and, of course, legal fees. Additionally, sellers usually need to offer a percentage to attract buyer agents (typically 2% to 2.5%).
Bottom Line
Realtor fees can be a significant expense when you are selling your home. Therefore, it’s essential to compare the fee structure and services offered before hiring a real estate professional or deciding to sell your home yourself. However, you should consider what is included in real estate commissions, as many Realtors cover marketing costs such as professional photography, staging, advertising, and other services in addition to their expert guidance during the process.
Canadian Realtor Fees FAQs
Are real estate commission rates negotiable in Canada?
Real estate commissions are not fixed by law in Canada, so there is no standard commission rate. Therefore, sellers can negotiate lower rates with listing agents, especially for high-value properties or dual transactions (selling and buying with the same agent).
Do you pay tax (GST/HST) on real estate commissions?
Yes, real estate commission is a professional service subject to federal and provincial sales taxes. For example, an Ontario home seller paying $25,000 in commission must pay an additional 13% HST ($3,250), bringing total fees to $28,250.
How much commission does a buyer’s agent make?
In a standard 5% commission structure, the buyer’s agent typically receives half (2.5%). In tiered provinces like BC or Alberta, the buyer’s agent receives roughly 3.15% on the first $100k and 1.15% to 1.5% on the remainder. If one agent represents both sides, called dual agency, they may retain both portions of the commission, depending on the deal terms.
What happens to the commission if I buy and sell with the same agent?
Some agents may offer a reduced commission rate (a “double-ended” or portfolio discount) if you hire them to sell your current property and assist with purchasing your next home.
