Realtor fees are the one closing cost almost everyone asks about and almost nobody explains in plain numbers. This is the 2026 version for Ontario: how commission works, who pays it, what HST does to it, how it is split, and where you have room to negotiate. Figures are current to November 2026.
The short answer
- There is no set or standard rate in Ontario. Commission is negotiable and is agreed in writing between you and your brokerage. The Real Estate Council of Ontario does not set or recommend a rate, and each brokerage decides its own.
- Commission is usually a percentage of the sale price plus 13% HST, though flat fees and mixed arrangements exist. The amount in the listing agreement normally covers both the listing brokerage and the brokerage that brings the buyer.
- The seller normally pays the whole commission out of the sale proceeds at closing. The buyer’s brokerage is paid from that amount in almost every Ontario resale.
- HST is charged on the commission, not on the price of a resale home.
What realtor fees are
A realtor’s commission is the payment to the brokerage for selling your home or finding one for you. It is most often a percentage of the final sale price, though it can be a flat fee or a mix of both. The amount you sign in the listing agreement covers both sides of the deal: the brokerage that lists and markets the home, and the brokerage that represents the buyer. The listing brokerage shares the agreed portion with the buyer’s side when the sale closes, and the listing agreement states how much that is.
Since the Trust in Real Estate Services Act (TRESA) took effect in Ontario, every buyer who works with an agent signs a buyer representation agreement that states how that agent is paid. In the normal case the seller’s offered share covers it. If the seller offers less than the buyer agreed to in writing, the agreement says who makes up the difference, so read that clause before you sign.
What it costs on a typical GTA sale
The average selling price across the GTA was $1,006,409 in September 2026 (TRREB Market Watch). The table shows what the commission comes to on a sale at that price at several example rates, before and after HST. These are illustrations of the arithmetic, not a price list; your rate is whatever you and your brokerage agree.
| Total commission agreed | Before HST | With 13% HST |
|---|---|---|
| 3% | $30,192 | $34,117 |
| 3.5% | $35,224 | $39,803 |
| 4% | $40,256 | $45,490 |
| 4.5% | $45,288 | $51,176 |
| 5% | $50,320 | $56,862 |
Two things stand out. HST adds roughly $4,000 to $6,500 on a sale at this price, and it is not optional. And because the total is split between two brokerages, the number that matters to you is the whole figure with HST, which is what comes off your proceeds at closing.
Who pays: seller, buyer or both?
In a standard Ontario resale the seller pays. The commission comes off the top of the sale proceeds on closing day: your lawyer receives the buyer’s funds, pays out the mortgage, the commission with HST, legal fees and adjustments, and sends you the balance. The buyer brings no commission cheque to the table.
There are three situations where a buyer pays something directly:
- A shortfall. The buyer’s representation agreement promises their brokerage a certain amount and the seller offers less. Unless the agreement says otherwise, the buyer owes the difference. Your agent should disclose this before you make an offer.
- A private or “for sale by owner” purchase. If the seller is not offering any commission, the buyer’s agreement decides whether the buyer pays their agent a fee, and how much.
- A flat-fee or consulting arrangement. Some buyers hire an agent for a fixed fee to handle one transaction, often on a new-construction purchase. This is set out in the agreement up front.
On a brand-new home from a builder, the builder pays the buyer’s brokerage; the buyer pays nothing extra for representation.
Where the commission actually goes
The headline percentage is not what your agent takes home. Take a 5% commission on a $1,006,409 sale as an example: about $50,320 before HST. A share of that goes to the buyer’s brokerage. The listing brokerage then pays its own costs out of what is left: the agent’s split with the brokerage, professional photography and video, staging, floor plans, print and online advertising, lockbox and showing systems, board and licensing fees, and the time spent on showings and negotiation. The marketing budget on a well-run GTA listing is commonly several thousand dollars before a single offer arrives, and the agent carries that cost if the home does not sell.
What is negotiable
Everything in the listing agreement is negotiable. The useful questions are about what you get for what you pay.
- The total rate and what it includes. Ask what the service covers at the rate quoted: photography, video, staging, floor plans, advertising, open houses, and how offers are handled. A lower rate with less service is a legitimate choice; so is a higher rate with more.
- How the total is split. The listing agreement states what is offered to the buyer’s brokerage. That number is yours to set with your brokerage, and it must be disclosed; ask your agent to explain how it is shown to buyers’ agents and what it means for your listing.
- The term and the holdover clause. The listing period and the holdover (how long after the listing ends the brokerage is still owed commission if a buyer it introduced closes) are both negotiable. RECO has noted that holdover periods are a frequent source of consumer complaints; ask for a short one.
- Two sides, one brokerage. If the same brokerage ends up representing both sides, ask in advance whether the total commission changes in that case.
- Bundled arrangements. If you are selling and buying with the same agent, a different rate on one of the two transactions is a common request.
What is not negotiable: the HST, and the requirement that whatever you agree is in writing before the brokerage starts work.
Other costs to budget alongside the commission
- Legal fees and disbursements: typically $1,500 to $3,000 for a sale, more with a mortgage discharge.
- Mortgage penalty: if you break a closed mortgage early, three months’ interest or the interest-rate differential, whichever is higher. Ask your lender for the number in writing before you list.
- Pre-listing repairs and staging: sometimes covered by the listing brokerage’s marketing budget; confirm what is included.
- Land transfer tax: paid by the buyer, not the seller, but it shapes what buyers can afford to offer. Toronto buyers pay both the provincial and the municipal tax.
- Moving and overlap costs: bridge financing or two months of carrying costs if the dates do not line up.
What is changing in 2026
The Competition Bureau of Canada has been investigating real estate commission rules since 2024, obtained court orders for records from the Canadian Real Estate Association in October 2024, and expanded the investigation in early 2026. A class action over buyer-agent commissions is also moving through the courts. Nothing has changed the rules in Ontario yet: commissions are still negotiable, still set in writing between client and brokerage, and still normally paid by the seller. If the rules change, this article will be updated.
Frequently asked questions
Is there a standard commission rate in Ontario? No. Each brokerage sets its own, and every agreement is negotiated individually. Anyone who tells you a rate is “the standard” is describing their own pricing, not a rule.
Do I pay commission if my home does not sell? Normally no. Commission is earned when a sale closes. Check the agreement for any marketing costs you have agreed to cover regardless.
Do I pay HST on the home itself? Not on a resale home. HST applies to the commission, legal fees and other services, and to brand-new homes bought from a builder, where the new-home HST relief to March 31, 2027 can return up to $130,000.
Can a buyer negotiate their agent’s fee? Yes. The buyer representation agreement is a negotiable contract. Ask about the rate, the term, the holdover and what happens if a seller offers less than the agreed amount.
What does the buyer’s agent do to earn their share? Searches and showings, market analysis and pricing advice, writing and negotiating the offer and conditions, coordinating inspections, financing and lawyers, and carrying the risk of months of work on deals that do not close.
Thinking of selling? See how we sell homes and what our listing package includes, or start with a free Markham home value estimate. Buying? Our buyer’s guide explains representation agreements and closing costs step by step.
Sources: Toronto Regional Real Estate Board, Market Watch September 2026 (average selling price $1,006,409). Real Estate Council of Ontario, consumer information on buyer representation agreements and remuneration under TRESA. Competition Bureau of Canada news releases, October 2024 and January 2026, on its investigation of real estate commission rules. The commission figures in the table are arithmetic examples at illustrative rates; every agreement is negotiated individually and Big City Realty does not publish a standard rate. This article is general information, not legal or tax advice.