How Much Are Realtor Fees in Ontario?
Understanding realtor fees is one of the most important steps before buying or selling a home in Ontario. This guide breaks down how commissions work, what you can expect to pay, what's included, and how to evaluate whether you're getting good value for your investment.
Typical Commission Rates in Ontario
Real estate commissions in Ontario are not fixed by law — they are negotiable between you and your agent. However, there are common ranges that most transactions fall within:
The most common total commission range, split between listing and buyer agent brokerages
Each brokerage (listing and buyer side) typically receives half of the total commission
Ontario's HST is charged on top of the commission amount, adding to the total cost
Important Legal Note
The Competition Bureau of Canada strictly prohibits real estate agents or boards from fixing, setting, or recommending commission rates. Any agent who claims there is a "standard" or "set" commission rate is incorrect. Rates are always negotiable between you and your agent, and should be discussed openly before signing any agreement.
Real-World Commission Examples
Here is what realtor fees look like at different price points common in Ontario's real estate market:
These are illustrative examples only. Actual commission rates are negotiated between you and your agent. Higher-value properties may negotiate lower percentage rates.
Who Pays Realtor Fees?
Understanding how commission flows between parties helps you plan your budget, whether you are buying or selling:
Sellers
The seller traditionally pays the total commission from the sale proceeds at closing. The commission amount and split are outlined in the listing agreement signed with your agent before the property is listed.
- Commission is deducted from sale proceeds at closing
- Terms are set in the listing agreement
- Seller's lawyer handles the disbursement
Buyers
Buyers traditionally do not pay realtor fees directly. The buyer's agent is compensated through the cooperating commission offered by the listing brokerage. However, buyer representation agreements may outline fee structures — always review before signing.
- Typically no direct fee paid by the buyer
- Buyer's agent is paid from total commission
- Review buyer representation agreements carefully
What's Included in Realtor Fees?
A full-service listing agent provides far more than just putting your property on MLS. Here is what a comprehensive service package typically includes:
Marketing and Exposure
- Professional photography and videography
- Virtual tours and 3D walkthroughs
- MLS listing and syndication to major portals
- Social media marketing and targeted ads
- Printed feature sheets and brochures
- Open houses and private showings
Strategy and Support
- Comparative market analysis and pricing strategy
- Staging consultation and preparation advice
- Offer negotiation and counteroffers
- Condition management (inspection, financing, etc.)
- Coordination with lawyers and mortgage brokers
- Closing day guidance and support
Negotiating Realtor Fees: What to Know
While commission is always negotiable, the lowest fee does not always mean the best outcome. Here is how to think about commission negotiation:
Smart Approaches
- Ask what services are included at the quoted rate
- Compare the full value, not just the percentage
- Review the agent's track record and recent sales
- Consider the total net proceeds, not just commission saved
- Discuss marketing plan and exposure strategy
Common Mistakes
- Choosing an agent solely based on the lowest commission
- Reducing the cooperating (buyer agent) commission too much
- Not asking what services are reduced at a lower rate
- Forgetting to account for HST in budget planning
- Not reading the listing agreement terms thoroughly
Joe's Perspective
"In 25+ years of selling real estate in Mississauga and the GTA, I've seen sellers save $5,000 on commission but lose $30,000 on the sale price because of poor marketing, weak negotiation, or limited exposure. The question isn't how much you pay in commission — it's how much you net at the end. A great agent pays for themselves many times over."
— Joe Battaglia, RE/MAX Realty Specialists Inc.
Other Selling Costs to Budget For
Commission is just one part of the cost of selling. Here are the other expenses Ontario sellers should prepare for:
Use our Seller Costs Calculator to estimate your total closing expenses based on your specific situation.
Frequently Asked Questions
How much do realtors charge in Ontario?
As of 2026, realtor commissions in Ontario are fully negotiable and not set by law. The most common total commission is between 4% and 5% of the sale price, typically split between the listing agent's brokerage and the buyer's agent's brokerage. For example, on a $900,000 home at a 5% total commission, the total fee would be $45,000 plus HST, split between both sides. However, rates can vary based on the property, market conditions, and the services provided.
Who pays the realtor fees — the buyer or the seller?
In Ontario, the seller traditionally pays the total real estate commission out of the sale proceeds at closing. This commission is then split between the listing brokerage and the cooperating (buyer's) brokerage according to the listing agreement. Buyers typically do not pay their agent directly, though buyer representation agreements may outline fee structures. It's important to discuss fee arrangements with your agent upfront before signing any agreements.
Is HST charged on top of the realtor commission?
Yes. In Ontario, real estate commissions are subject to 13% HST (Harmonized Sales Tax). This is charged on top of the commission amount. For example, if the total commission is $40,000, HST adds another $5,200, bringing the total to $45,200. This is an important cost to factor into your selling budget. HST on commission is a legitimate business expense and may have tax implications depending on your situation — consult your accountant.
Can I negotiate realtor fees in Ontario?
Yes, real estate commissions in Ontario are 100% negotiable. There is no fixed or standard rate set by law or any real estate board. The Competition Bureau of Canada has made it clear that agents cannot agree among themselves on commission rates. When negotiating, consider the full scope of services offered, the agent's track record, their marketing plan, and the current market conditions. The lowest fee does not always deliver the best net result — an experienced agent who negotiates a higher sale price can more than offset their commission.
What services are included in realtor fees?
A full-service listing agent's commission typically covers: professional photography and virtual tours, MLS listing and syndication to major real estate portals, marketing materials (brochures, social media, online ads), open houses and private showings, market analysis and pricing strategy, negotiation of offers and conditions, coordination with lawyers and mortgage professionals, and guidance through the entire closing process. The specific services vary by agent and brokerage, so always ask for a detailed breakdown before signing a listing agreement.
Are there alternatives to paying full commission?
Some alternatives exist, including flat-fee MLS listing services ($500-$2,000 to list on MLS without full agent support), discount brokerages that charge lower commissions with reduced services, and selling privately (FSBO) with no agent. However, these options often mean handling negotiations, legal paperwork, marketing, and showings yourself. Statistics consistently show that properties listed with full-service agents sell faster and for higher prices on average — often more than offsetting the commission. The decision depends on your comfort level, available time, and the complexity of your transaction.
Get a Transparent Fee Discussion
Joe Battaglia believes in complete transparency about fees and services. With over 25 years of experience and 1,000+ successful transactions, the Battaglia Team provides exceptional value at every price point. Call for a no-obligation conversation about your specific needs.