Closing Costs When Selling a House in Ontario

Real estate commission and HST: the largest single line

Commission is the largest single closing cost for almost every seller. In the GTA, 4–5% of sale price plus 13% HST on the commission is typical. On a $1.2M sale at 5%, that’s $60,000 commission + $7,800 HST = $67,800 — about 5.65% all in. On a $750K sale at the same rate, $37,500 + $4,875 = $42,375. See our breakdown of realtor fees in Ontario for the full structure and what’s included.

If you’re comparing brokerages, model the all-in commission at your expected sale price for each proposal and compare net proceeds, not headline rate. A flat-fee brokerage at $5,000 + 2.5% co-op might come in lower than a 4.5% full-service proposal in absolute dollars but deliver materially less marketing reach. The right answer is property-specific.

Legal fees and disbursements

A seller’s real estate lawyer in Ontario typically charges $1,500–$2,500 for legal fees, plus disbursements (title search, courier, software, registration costs) of $300–$700. The lawyer handles preparation of the deed, statements of adjustments, mortgage discharge instructions, trust accounting, and the actual transfer of funds and registration of the new owner on title. They also resolve any title issues that surface during the buyer’s lawyer’s search — which happens more often than first-time sellers expect.

Choose a real estate lawyer the way you’d choose a real estate agent: ask for a fixed quote in writing, confirm what’s included, ask whether they’re available for closing-day issues by phone, and confirm their trust account is in good standing with the Law Society of Ontario.

Mortgage discharge, prepayment penalties, and adjustments

• Discharge fee: $200–$400 paid to your lender to register the mortgage discharge on title.
• Prepayment penalty: if you’re selling mid-term on a closed mortgage, the lender will charge an interest rate differential (IRD) or three months’ interest, whichever is greater. On a $700K mortgage with a rate that’s 1% above current rates and 2.5 years left, an IRD penalty can run $15,000–$25,000+. Get the payout statement early.
• Property tax adjustments: taxes are pro-rated to closing on the statement of adjustments. If you’ve prepaid, the buyer reimburses you for the days they’ll own; if you’re behind, the opposite.
• Utility adjustments: water, gas, hydro, sometimes condo fees — adjusted to closing.
• Lien releases: any HELOCs, builder liens, or judgment liens must be paid off and released. Your lawyer coordinates.

Pre-listing costs: staging, photography, repairs

Pre-listing costs vary widely depending on the home and the listing agent’s standard inclusions. A full-service Toronto listing typically includes professional photography ($500–$1,500), drone or video walk-through ($500–$2,000), and a staging consultation. Full home staging — furnishing an empty home or replacing existing furniture — typically runs $1,500–$5,000+ for a 2-bedroom condo and $4,000–$10,000+ for a detached home, often paid up front and recovered in the sale price.

Repairs and touch-ups are highly variable. A pre-listing inspection ($400–$700) can flag issues you’d rather know about before a buyer’s inspector finds them. Common pre-listing investments: paint ($1,500–$5,000), minor kitchen and bath updates, decluttering and rental storage, landscaping and curb appeal. The marginal return on each is property- and market-specific — our Toronto listing agent page covers what we recommend in advance.

What you don’t pay as a seller

Sellers do not pay Ontario Land Transfer Tax or the Toronto Municipal Land Transfer Tax — those are buyer-side. You generally don’t pay HST on the sale of a resale residential home (HST applies to new construction and substantially renovated homes only). You don’t pay capital gains tax on the sale of your principal residence under the Canadian principal-residence exemption — see our guide on capital gains tax on real estate for the eligibility rules.

You also don’t pay buyer-side legal fees, the buyer’s home inspection, the buyer’s mortgage costs, or the buyer’s moving expenses. The closing statement is split cleanly between the two parties and your lawyer will walk you through every line on the statement of adjustments before you sign at closing. See our buyer-side tax guide for the costs the buyer absorbs.

Worked examples: what you actually net at $750K, $1M and $1.5M

The examples below assume a 5% total commission (2.5% listing side + 2.5% buyer’s brokerage) with 13% HST, $2,000 in legal fees and disbursements, a $300 mortgage discharge fee, and no prepayment penalty. They exclude staging and repairs, which are discretionary and vary too much to average — add your own quotes on top.

• $750,000 sale: commission $37,500 + HST $4,875 = $42,375; legal $2,000; discharge $300. Total closing costs ≈ $44,675 (about 6.0%). Gross proceeds before mortgage payout ≈ $705,325.
• $1,000,000 sale: commission $50,000 + HST $6,500 = $56,500; legal $2,000; discharge $300. Total ≈ $58,800 (about 5.9%). Gross proceeds before payout ≈ $941,200.
• $1,500,000 sale: commission $75,000 + HST $9,750 = $84,750; legal $2,000; discharge $300. Total ≈ $87,050 (about 5.8%). Gross proceeds before payout ≈ $1,412,950.

Net proceeds are gross proceeds minus your mortgage balance, any HELOC or lien payouts, and the pro-rated property tax and utility adjustments. Because commission is a percentage and the other costs are flat, the all-in percentage falls slightly as the price rises. A prepayment penalty is the one item that can swing these numbers by five figures — request the payout statement from your lender before you list, not after you accept an offer.

Selling a condo: the extra line items

• Status certificate: buyers will make their offer conditional on reviewing it, and the seller typically orders it from the condo corporation. The fee is capped at $100 under Ontario’s Condominium Act, but allow up to 10 business days for the corporation to produce it — order it when you list, not when you get an offer.
• Outstanding special assessments: if the corporation has levied a special assessment, the buyer will expect it paid in full or credited on the statement of adjustments. Disclose it up front; it will surface in the status certificate anyway.
• Maintenance fee adjustment: common-expense fees are pro-rated to the closing date like property taxes. If you’ve paid the month in full and close mid-month, the buyer reimburses the balance.
• Parking and locker units: if they are separately deeded, your lawyer registers separate transfers — a small additional registration disbursement per unit.

When each cost is actually paid

1. Before listing: pre-listing inspection, repairs, paint, staging deposit, and the status certificate order on a condo. These come out of pocket.
2. While listed: carrying costs — mortgage, taxes, utilities, condo fees — continue until closing. On a $1M home with a $600K mortgage these can run $4,000–$6,000 a month, which is why days on market is a cost, not just a statistic.
3. On acceptance of the offer: nothing is paid, but your lawyer should now request the mortgage payout statement and confirm every charge on title.
4. On closing day: commission and HST, legal fees and disbursements, the mortgage payout and discharge fee, lien releases, and all adjustments are deducted by your lawyer from the buyer’s funds. You receive the net by wire or certified cheque the same day or the next business day.

Do selling costs differ across the GTA and Hamilton?

The line items are the same everywhere in Ontario. Land transfer tax — including the extra Toronto Municipal Land Transfer Tax — is paid by the buyer, so a seller in Toronto pays no more in tax than a seller in Vaughan, Richmond Hill, Brampton or Hamilton. What does vary is the commission convention (buyer-brokerage cooperation rates differ slightly by board and price band), typical legal fees, and how much pre-listing prep the local buyer pool expects.

If you’re planning a sale, our local pages break down what buyers currently pay and how quickly homes are selling: selling in Toronto, Etobicoke, Vaughan, Richmond Hill, Brampton and Hamilton. For recent comparable sales, see houses sold in Toronto or our sold listings.

Frequently Asked Questions

Do I pay land transfer tax when selling a house in Ontario?

No. Ontario Land Transfer Tax and the Toronto Municipal Land Transfer Tax are paid by the buyer at closing. The seller’s tax exposure is limited to HST on commission and, for a non-principal residence, capital gains tax.

How do I estimate my closing costs before listing?

Multiply your expected sale price by the all-in commission rate (e.g. 5% × 1.13 for HST = 5.65%), then add roughly $2,000–$3,000 for legal fees, disbursements and the mortgage discharge, plus any prepayment penalty from your lender’s payout statement. Subtract that and your mortgage balance from the sale price to get estimated net proceeds. We run this on every free valuation — request one here.

Do I owe HST on the sale of my home?

Generally no on the sale of a used residential property. HST applies to substantially renovated or newly built homes. If you’ve done a major renovation that approached new-build scope, confirm with your lawyer or accountant before listing.

What if my mortgage payout penalty is large?

Ask your lender for the exact payout figure as soon as you’re seriously considering selling. In some cases the new buyer can assume your mortgage; in others, blending and porting to the next property avoids the penalty. Negotiate through a mortgage broker if your lender is unhelpful.

Can I include closing costs in my net proceeds estimate?

Yes — that’s exactly how a good agent prepares it. Estimated sale price minus all closing costs gives you net proceeds. We do this on every free home valuation — reach out if you want one.

Are moving costs deductible?

Sometimes — if you’re moving for work and meet CRA’s eligibility rules (40km closer to your new workplace). Most moves don’t qualify, but it’s worth a check with your accountant.