Buying or selling a home in Toronto involves many costs beyond the sale price. Here’s a clear, detailed guide to help you understand real estate fees—so you can budget smartly and negotiate confidently.
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1. Real Estate Commission – Who Pays & How Much
In Ontario, it’s standard for the seller to pay the full real estate commission, which is then split between the listing agent and the buyer’s agent.
Typical commission rates range from 3.5% to 5% of the sale price, with common splits like 2.5%/2.5% or 2%/3%.
Important details:
- The commission is fully negotiable—including lower rates or flat fees based on services provided.
- HST (13%) applies on top of the commission and is paid by the seller.
2. Seller Closing Costs Beyond Commission
Sellers typically pay more than just the commission. Here’s what to expect:
- Legal fees & disbursements: Approximately $800–1,500+
- Commission + HST: 3.5–5% of sale price + HST
- Mortgage discharge penalties: If selling with a mortgage still in place
- Pre-listing costs: Staging, repairs, certifications (varies)
On average, sellers can expect total closing costs of 4–7% of the sale price.
3. Buyer Closing Costs – What You Pay on Top of the Purchase
Toronto buyers face several mandatory fees, usually between 1.5% and 4% of the purchase price.
Key Components:
- Land Transfer Tax (LTT): Provincial and City tax, progressive rates up to 2.5% each
- Legal fees + disbursements: $1,000–2,500
- Title insurance: $250–500
- Home inspection: $400–700 (optional, highly advised)
- Appraisal & survey: $300–700 (lender requirement)
- Registration fees: ~$160 in total
- CMHC insurance: If down-payment is under 20%
- Adjustments: For prepaid taxes, utilities, or condo fees
4. Special Situations & Negotiation Opportunities
- First-time homebuyers may receive rebates up to $4,000 (Provincial) and $4,475 (Municipal Toronto) on LTT.
- New builds often include additional fees like Tarion enrollment, HST, and development levies
- Seller concessions: Sellers may pay some buyer-related fees to strengthen an offer
- Flat-fee or discount brokerage: Lower commissions but sometimes fewer services. Commission remains negotiable.
5. How to Reduce or Offset These Costs
- Negotiate commission with your agent
- Compare real estate lawyers for best legal fee rates
- Time your closing date—end of month closings reduce interest charges
- Use your LTT rebates when eligible
- Seek seller contributions for closing costs when possible
Why This Knowledge Matters
Understanding these fees ensures you won’t be caught off-guard—and that you can negotiate effectively. For buyers, it means better budgeting; for sellers, clearer net proceeds and stronger marketing strategies.
Are You Ready to Save Thousands and Reduce Surprises?
Get a personalized fee breakdown for your Toronto real estate transaction—whether you’re buying or selling. With my experience as a Sotheby’s-affiliated agent, I’ll help you navigate every cost, avoid hidden fees, and maximize value.
📩 Email me at Olena@AgentOlena.com or call/text 647‑294‑3039 to receive your complimentary fee guide and savings strategy.
