If you’re planning to sell a home in Canada, chances are you’re hoping to make a profit on that sale. However, traditional real estate commissions often take a large chunk of your equity. For instance, on a $696,078 home sale (the national average as of June 2026), 5% Realtor commission fees would amount to $34,803.90, plus tax. This is why it’s crucial that you research how to save on real estate commissions if you plan to sell in Canada.
The good news is that real estate commissions are not legally fixed in Canada and are fully negotiable. While you may feel that you’re stuck with traditional Realtor commissions, there are alternative options that exist, such as low-commission real estate agents and flat-fee MLS® listing services, if you’re looking for how to save on Realtor fees.
Key Takeaways
- Traditional real estate commissions in Canada typically range between 3% to 7% of the sale price, but they vary by region
- To save money on fees, consider a discount brokerage or negotiating the commission rate with a full-service real estate agent
- Selling your home on your own, without a Realtor, could potentially save thousands of dollars in selling costs
Understanding Traditional Realtor Fees in Canada
Real estate commissions are the fee you pay to a real estate agent for using their services. In general, sellers pay the commission to both the buyer’s agent and the seller’s agent.
The typical Canadian real estate commission varies depending on where you live. Some provinces charge a standard percentage, regardless of the final sale price, while others use a graduated percentage. Here’s a breakdown of how traditional real estate agent commissions work by province. However, keep in mind that the typical commission rates may vary by region, especially in rural areas.
Commissions are usually split evenly between the listing agent and the buyer’s agent. However, some provinces offer a slightly higher percentage to the seller’s agent. All the amounts are due with applicable taxes (GST/HST) on the commission when the transaction closes.
- 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, on an average home price of $946,878, the buyer’s agent would receive $12,970 and the seller’s agent would get $15,202, for a total of $28,172 before tax.
It’s important to stress that commissions are clearly stated in the listing agreement, so once you agree to the terms, you can’t start looking for ways to save on real estate agent commissions.
Strategy 1: Partner with Low-Commission Real Estate Agents
One of the best ways to save on real estate commission during the home-selling process is to consider using a discount brokerage or a real estate agent that uses the 1% model. A 1% real estate agent is someone who will only charge you a 1% commission to sell your property instead of the typical 2.5%. However, the buyer’s agent will typically still receive their 2.5%, but you will still experience significant savings.
The general consensus in the industry is that you still get the same services, but the trade-off is volume since discount agents will take on more clients. What’s important to stress is that the business model is a bit different, as these brokerages rely on transaction volume and technical efficiencies to lower costs.
Since you’re only paying 1% to the selling agent, this means you could save 1.5% on Realtor fees. For the average Canadian home, this translates to savings of $10,441.17.
Pros of a Low Commission Agent
- You get full agent support with professional photography, MLS® exposure, and negotiation help
- You have massive financial savings since you’re cutting 1.5% from your closing costs, which can be a significant amount on homes over $1 million
Cons of a Low Commission Agent
- You still generally need to offer a competitive commission to the buyer’s agent
- You could get less personalized attention if the brokerage is handling a high volume of sales
Strategy 2: Use a Flat Fee MLS® Listing (Mere Postings)
If you’re looking for different ways to save on Realtor fees, you’ll want to explore the For Sale By Owner (FSBO) hybrid path. As the name implies, FSBO means the seller lists and sells the property on their own without a real estate agent.
A flat fee MLS® listing (technically called a “Mere Posting”) is a hybrid option that enables you to list your home on REALTOR.ca and other real estate websites like Zolo, the same as a traditional listing, by paying an upfront, one-time fee (typically ranging from $500 to $1,000).
This MLS® listing will give your home maximum exposure and potentially attract serious buyers, while maintaining control over pricing and negotiations, improving your odds of selling yourself. For example, if you want to save on Realtor fees, you can list with EazySell by Zolo, where you get 90 days of full exposure to the MLS® System for only $500.
Pros of a Flat Fee MLS® Listing
- Reduced selling costs since you’re not handing over the traditional 2.5%. For the average home price in Ontario, you would replace a $20,790 expense with a $500 one
- You retain complete control over showings, open houses, and negotiations
- You get full MLS® exposure without paying the hefty commission
Cons of a Flat Fee MLS® Listing
- You must do all the heavy lifting (pricing, paperwork, and vetting buyers)
- You should still offer a buyer’s agent commission to incentivize agents
- Not ideal for first-time sellers who aren’t comfortable with staging, photography, marketing, negotiations, and everything else involved in selling a home
Strategy 3: How to Negotiate Fees with a Full-Service Realtor
If you’re still looking for how to save on Realtor fees, but don’t want to miss out on the traditional experience as a seller, it’s important to note that everything is negotiable. You can negotiate with a full-service real estate agent to see if they’re willing to drop their rate, since different brokers offer varying levels of service in marketing, experience, and overall assistance. For example, some full-service agents offer price analysis, home staging, open-house techniques, extensive negotiation, and help with closing.
Dave Dubbin, a Broker and Senior Vice President at Sotheby’s International Realty Canada, recommends that you interview three real estate agents before listing your place. He noted that they will all offer different levels of service, and you can negotiate accordingly. The general expert consensus is that before you enter into negotiations, you should compare commission structures from multiple agents in your area.
However, you should take a realistic look at the services that they offer and if the value matches your expectations. Choosing on price alone can mean leaving money on the table if the agent can’t negotiate effectively. Dubbin warned, “Properties don’t sell for a fixed amount, it’s a range of value based on the skill and marketing of the listing agent.”
Here are some of the questions that you should ask Realtors before signing:
- What services are included?
- How will the home be priced and staged?
- What marketing do you offer?
- What happens if the listing doesn’t do well?
Bottom Line
If your primary goal is to save on real estate commission, you’ll want to explore all of your options to ensure that you choose the path that makes the most sense for your unique situation. If you’re experienced in real estate transactions, you can enjoy massive savings from a flat-fee MLS® listing. On the other hand, if you haven’t sold a home before, you could benefit from working with a full-service Realtor.
Check out EazySell by Zolo to list your home for just $500 plus tax, meaning you could save thousands in commission fees. If you don’t sell, you choose to list with a Zolo full-service agent within the 90-day period, your $500 fee is deducted from the agent’s commission when your home sells.
How to Save on Real Estate Fees FAQs
Do I still have to pay the buyer’s agent if I use a flat fee MLS® listing?
It is recommended that you offer a commission to the buyer’s agent, even with a flat fee MLS® listing, to attract buyer interest and cooperation from buyers and their agents. The standard commission is typically 2% to 2.5% for the buyer’s agent, but it varies by location and is separate from what you pay a seller’s agent or listing service.
Do low-commission real estate agents offer the same level of service?
It depends on the brokerage, but many modern discount brokerages offer full service, providing professional photography, handling open houses, and managing legal paperwork and negotiations. However, always check the contract terms as some ultra-low-rate agents may charge extra for premium marketing features, signage, or lockboxes.
Are real estate commissions subject to GST/HST in Canada?
Yes. The Canadian government treats real estate commissions as professional services and therefore, they are subject to sales tax. For example, a seller in Ontario will pay 13% HST on top of the calculated commission fee, whereas a seller in Alberta will pay 5% GST.
Can a buyer save on Realtor fees, too?
Buyers typically avoid out-of-pocket Realtor fees since the seller covers the agent’s commission. However, buyers can save on other closing costs by shopping around for a real estate lawyer or searching for buyer cashback rebates.
