November 2, 2026 | Selling
How Much Is Real Estate Commission in Ontario? (2026)
Updated October 2026 · By Xerxes Bharucha, Broker · Team Rajpal
Quick answer: In Ontario, real estate commission is usually around 4% to 5% of the sale price in total, plus 13% HST. It’s typically split between the listing brokerage and the buyer’s brokerage, and in most sales the seller pays both out of the sale proceeds on closing day. There is no fixed or “standard” rate: commission is set in your listing agreement and can be negotiated. But the rate is the wrong number to focus on. What matters is how much you net.
How much is real estate commission in Ontario?
There’s no set rate. Industry sources often quote about 5% in total, and some averages for Ontario sellers come in closer to 4.3%. Ontario’s regulator, RECO, doesn’t allow agents to suggest a rate is fixed or approved by any government or real estate board. Commission can be a percentage, a tiered percentage, a flat fee or a mix.
HST of 13% is charged on top of the commission. On a $900,000 sale at 5%, that’s $45,000 in commission plus $5,850 in HST.
Who pays the buyer’s agent’s commission in Ontario?
Officially, buyers sign a buyer representation agreement that sets out what they owe their own brokerage. But in practice, the seller usually covers it through the listing and the offer.
In almost all cases, sellers pay the commission for both the listing brokerage and the buyer’s agent’s brokerage. Buyers already have a lot of closing costs, and it has always worked this way. Yes, there are cases where buyers pay their own agent or represent themselves, but most buyers see it as a professional service included in the price of the home. And if the seller doesn’t get a price they’re willing to sell at, the home doesn’t sell, and they typically don’t pay either commission.
Xerxes Bharucha, Broker
When is commission paid?
On closing day, out of the sale proceeds. Your lawyer pays it from the money the buyer sends, so you don’t write a cheque. If the home doesn’t sell, there’s normally no commission to pay.
Is real estate commission negotiable in Ontario?
Yes. It’s agreed between you and the brokerage in your listing agreement. The better question is what you get for it.
The biggest thing sellers get wrong is treating commission like take-home pay. It’s revenue, and it has to cover brokerage splits, insurance, photography, video, signage, advertising and support staff before anything reaches the agent. When you ask an agent to cut their commission, you’re often cutting the budget that markets your home. The real question isn’t “who charges the least?” It’s “who will net me the most?” A home that’s well marketed, priced right and negotiated hard will almost always net more than a discounted listing. And an agent who drops their own fee before they’ve negotiated anything for you is showing you how they’ll negotiate for you.
Xerxes Bharucha, Broker
The one question to ask any agent before you sign
Ask: “What’s your sale-to-list ratio compared with other agents selling in my neighbourhood?” That’s the true litmus test. Say two agents list your home at the same price. One typically sells at 96% of list price, the other at 99%. Even if the 99% agent charges 1% more in commission, they’re putting about 2% more in your pocket. On an average home, that’s roughly $20,000.
Xerxes Bharucha, Broker
Worked example (for illustration only):
| Agent A | Agent B | |
|---|---|---|
| List price | $1,000,000 | $1,000,000 |
| Sale-to-list ratio | 96% | 99% |
| Sale price | $960,000 | $990,000 |
| Total commission | 4% ($38,400) | 5% ($49,500) |
| HST on commission | $4,992 | $6,435 |
| You keep | $916,608 | $934,065 |
Agent B costs more in commission but puts about $17,500 more in your pocket.
Commission is only one cost of selling. See the full list in how much it costs to sell a house in Ontario, more questions to ask a realtor, and what your home is worth.
Real estate commission in Ontario: FAQ
What is the average real estate commission in Ontario?
There’s no standard rate. Most sales land around 4% to 5% in total, plus 13% HST, split between the two brokerages.
Does the seller pay the buyer’s agent in Ontario?
Usually, yes. The buyer signs an agreement with their own brokerage, but in most sales the seller covers the buyer’s agent’s commission from the sale proceeds.
Is HST charged on real estate commission in Ontario?
Yes, 13% on the commission amount.
Do I pay commission if my house doesn’t sell?
Normally no. Commission is paid on closing, out of the sale proceeds.
Is a lower commission always better?
No. An agent who sells for a few percent more can net you thousands more, even at a higher rate. Ask for their sale-to-list ratio.
Call or text Team Rajpal · 647.372.2997
About Team Rajpal: Team Rajpal is a real estate team based in Seaton, Pickering, with Re/Max Key2 Real Estate., Brokerage. We help buyers, sellers and investors across Pickering, Ajax and Durham Region, and we handle leasing and property management through Key 2 Rent.
Sources: WealthNorth, how real estate commission works in Canada (October 2026); RECO Bulletin 6.2, remuneration clause in an agreement of purchase and sale.
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