Ontario Real Estate Commission Calculator

What percentage do most realtors charge in Ontario?

The most commonly cited rate is 5% of the sale price, typically split 2.5% to the listing agent's brokerage and 2.5% to the buyer's agent's brokerage. Commission is negotiable in Ontario — there is no set rate. Discount brokerages and flat-fee services routinely charge less, with full-service rates ranging from 3.5% to 5% in most markets.

How do I calculate real estate commission in Ontario?

Multiply the sale price by the agreed commission rate, then add 13% HST. For a $700,000 sale at 5% commission: $700,000 × 5% = $35,000 base commission. HST = $35,000 × 13% = $4,550. Total commission paid by the seller = $39,550. Listing and buyer brokerages then split the base commission per the listing agreement (typically 50/50).

Who pays the realtor commission in Ontario, buyer or seller?

In a traditional Ontario residential transaction, the seller pays the entire commission out of the sale proceeds at closing. The seller's brokerage then pays the buyer's brokerage from the listing-side commission. Buyers do not directly pay their agent in most cases. Buyer Representation Agreements may specify exceptions where the buyer pays a top-up if the listing brokerage offers less than the agreed buyer-side commission.

Is HST charged on real estate commission in Ontario?

Yes. Ontario charges 13% HST on the full real estate commission. The HST is paid to the brokerages collecting the commission and remitted to the CRA. HST is calculated on the gross commission (before any commission rebates). Commission rebates from the brokerage to the buyer are typically post-HST.

What is the lowest commission a realtor will take in Ontario?

Discount and flat-fee brokerages exist with listing-side commissions as low as 1% (or flat fees of $4,000-$8,000). Most full-service Ontario brokerages won't go below 1.5% on the listing side, especially in slower markets. The buyer-side commission (offered by the listing brokerage to the cooperating brokerage) typically stays at 2-2.5% to attract buyer agents to show the property.

Are commission rates negotiable in Ontario?

Yes. Ontario law explicitly states real estate commissions are negotiable. RECO requires brokerages to disclose this to consumers. The commission rate, structure (percentage vs flat fee), and split between listing and buyer brokerage are all part of the listing agreement and can be discussed before signing. Many sellers negotiate from the standard 5% based on market conditions, the property type, and the brokerage's value proposition.