When you sell a home in Ontario, the sale price isn't what lands in your bank account. Several costs come off the top, and a few of them surprise sellers every year. This checklist covers what to expect, so you can estimate your net proceeds before you list.
1. Real estate commission
Commission is the largest selling cost for most people. In Ontario, commission is negotiable and is set out in your listing agreement, including how much goes to the buyer's agent. HST at 13% is charged on top of the commission, which sellers sometimes forget to include.
When comparing agents, look at what the commission pays for: pricing analysis, preparation, photography, marketing reach, negotiation and how the agent handles offers. The lowest fee isn't always the lowest cost if the home sells for less.
2. Legal fees and disbursements
You need a real estate lawyer to close the sale. They review the agreement, prepare closing documents, discharge your mortgage and send the proceeds to you. Ask for a quote that includes fees, disbursements and HST so there are no surprises.
3. Mortgage discharge and prepayment penalties
If you still have a mortgage, your lender will charge a discharge fee. If you break the mortgage before the end of its term, you may also owe a prepayment penalty. For fixed-rate mortgages this is often the greater of three months' interest or an interest rate differential, which can be large. Ask your lender for a payout statement early. If you are buying another home, ask whether the mortgage can be ported to the new property.
4. Preparing the home
Most homes benefit from some preparation before they're photographed:
- Small repairs, paint and lighting updates
- Deep cleaning, decluttering and sometimes storage
- Staging, especially for vacant or larger homes
- Pre-listing inspection, which some sellers choose to remove surprises during negotiations
These costs usually pay for themselves when they're focused on what buyers notice first. I'll tell you which ones matter for your home and which you can skip.
5. Moving and timing costs
Budget for movers, packing and possibly storage. If you are buying and selling at the same time and the dates don't line up, you may need bridge financing or short-term accommodation. Planning the two closing dates together can save thousands.
6. Adjustments on closing
On closing day, your lawyer adjusts for property tax and, for condos, maintenance fees you have prepaid or still owe. These can work in your favour or against you, depending on what you've paid for the year.
7. Tax on the sale
If the home has been your principal residence for every year you owned it, the gain is generally tax-free, though the sale still needs to be reported on your tax return. If it was a rental, a cottage, or only partly your home, capital gains tax may apply. Speak with a tax professional before you list so there are no surprises. Sellers who are not residents of Canada have extra requirements, including a clearance certificate from the CRA.
How to estimate your net proceeds
Start with a realistic sale price based on recent comparable sales, not the highest number you've heard. Then subtract commission plus HST, legal fees, your mortgage payout and any penalty, preparation and moving costs, and any tax owing. What's left is your real budget for the next move.
When you request a free home evaluation, I include an estimate of your net proceeds alongside the suggested price range, so you can plan your next step with confidence.
Common questions
Is real estate commission negotiable in Ontario?
Yes. Commission is set out in your listing agreement and is negotiable. HST is charged on top.
Do I pay capital gains tax when I sell my home?
Generally not, if it was your principal residence for every year you owned it, but you still report the sale. Rentals and second properties can be taxable.
How can I reduce the cost of selling?
Focus preparation on what buyers notice, plan both closing dates together if you're also buying, and check your mortgage penalty early.
Alexey Kopeykin, Sales Representative, Zolo Realty Brokerage Inc. Published October 2026. General information, not legal or tax advice; confirm details for your situation.