Thinking about selling your house in Ontario? One of the first questions homeowners ask is: How much will it actually cost to sell my home, and how much money will I walk away with?
Understanding seller’s closing costs in Ontario is an important part of preparing for a successful home sale. From realtor commissions and legal fees to staging, cleaning and moving expenses, the costs can add up.
To make things easier, we’ll use a home selling for approximately $1,000,000 as our example. This is an illustrative selling price, not the average price of every Ontario home. The estimates below are based on typical selling expenses and my experience working with homeowners in King City, York Region and the surrounding Greater Toronto Area.
Seller’s Closing Costs in Ontario: What Should You Budget For?
Here is a quick breakdown of the most common expenses when selling a $1 million house in Ontario:
| Selling Expense | Estimated Cost |
|---|---|
| Cleaning and decluttering | $200 to $1,000+ |
| Small repairs and improvements | $300 to $3,000+ |
| Realtor commission (5% example + HST) | $56,500 |
| Legal fees and closing expenses | Approximately $2,000 |
| Home staging | A few hundred to $4,000+ |
| Mortgage penalties | Varies |
| Moving costs | $500 to $3,000+ |
| Outstanding utilities and property taxes | Varies |
Keep in mind: Not all these expenses will apply to every property. Some services, such as staging and professional marketing, may already be included in your realtor’s listing package.
Strictly speaking, some of these are pre-listing and moving expenses rather than legal closing costs. However, they are all important when calculating the total cost of selling your home in Ontario.
1. Cleaning & Decluttering Costs – $200 to $1,000+
First impressions matter!
Depending on your home’s condition, professional cleaning and decluttering can cost anywhere from $200 to over $1,000 if deep cleaning, carpet cleaning or junk removal is required.
A clean, organized home feels more spacious and allows potential buyers to focus on the property rather than its contents.
2. Small Repairs & Home Improvements – $300 to $3,000+
Sometimes the smallest improvements make the biggest visual difference.
Fresh paint, replacing outdated light fixtures, changing burnt-out light bulbs, updating faucets and door handles, repairing damaged baseboards, refreshing caulking and addressing minor maintenance issues can instantly improve your home’s appearance.
My advice: Before spending money on renovations, speak with your realtor. Not every improvement will increase your selling price, and the goal is to focus on changes that offer the best potential return on investment.
3. Realtor Commission in Ontario – Negotiable
One of the largest expenses when selling a home is the real estate commission.
An example of a commission structure in Ontario is:
- 2.5% for the listing brokerage
- 2.5% offered toward the buyer’s brokerage compensation
- 13% HST on applicable commissions
On a $1,000,000 home sale, a combined 5% commission would be $50,000 plus $6,500 HST, for a total of $56,500.
All real estate commissions in Ontario are negotiable. There is no mandatory commission rate.
When choosing a real estate agent, don’t compare commission percentages alone. Ask what services are included.
Will your agent cover staging? Professional photography and video? How much will be invested in online marketing, and what additional strategies will help your home stand out?
This is where your commission should deliver value.
Offering compensation toward the buyer’s brokerage fees may also be worth considering, particularly in a slower market. The amount is negotiable, but a competitive offer can help reduce potential financial obstacles for buyers who have brokerage fee obligations.
4. Legal Fees & Seller’s Closing Costs – Approximately $2,000
You’ll need a real estate lawyer to handle the legal aspects of your sale, including transferring ownership, paying out any registered mortgage and distributing the proceeds.
Budget approximately $2,000 for routine legal fees and related closing expenses, although the final amount depends on your lawyer and the complexity of the transaction.
5. Home Staging Costs – A Few Hundred to $4,000+
Staging helps buyers visualize how a space can look and function.
Small decorative additions may cost only a few hundred dollars, while furnishing and staging an entire home can cost $4,000 or more, particularly if the home is larger than 2,500 square feet.
Important: Staging furniture is usually rented for a specified period. If your home takes longer to sell, additional rental charges may apply. You’ll also be responsible for keeping rented items in good condition under the staging agreement.
Some realtors, including myself, include staging services in their listing package, so always ask what is covered.
6. Mortgage Penalties & Lender Fees – Varies
If you’re selling before your mortgage term ends, your lender may charge a prepayment penalty.
For many closed variable-rate mortgages, the penalty is approximately three months’ interest. Fixed-rate mortgage penalties may be significantly higher, depending on your mortgage terms and the lender’s calculation.
You may also have to pay a mortgage discharge fee.
My advice: Contact your lender before listing. If you’re purchasing another property, ask whether your mortgage can be transferred (ported) or whether any penalties may be reduced or waived.
7. Moving Costs in Ontario – $500 to $3,000+
Moving costs depend on your home’s size, the distance you’re moving and whether professional packing is required.
A small local move may cost around $1,000, while moving the contents of a larger detached home will usually cost more.
8. Outstanding Utilities & Property Taxes – Varies
Before closing, outstanding utilities, property taxes, condominium fees (if applicable) and other property-related charges must be addressed.
Your lawyer will also calculate closing adjustments to account for expenses you’ve prepaid or amounts still owing.
9. Other Seller’s Closing Costs Worth Considering
A few additional expenses may apply:
- Mortgage discharge and administration fees, depending on your lender.
- Capital gains tax, if the property is an investment property, secondary residence or does not fully qualify for the principal residence exemption.
- Condominium-related expenses, if you’re selling a condo.
- Temporary storage or accommodation, if your selling and moving dates don’t align.
If the property qualifies fully for the principal residence exemption, you generally won’t pay tax on the gain, but the sale must still be reported to the CRA. Ask a qualified tax professional about your situation.
Estimate Your Selling Costs and Proceeds
Start with the $1 million example below, or enter your own figures to estimate what you could keep after selling. All amounts are in Canadian dollars.
YOUR SALE, YOUR NUMBERS
CADChange any amount to update your estimate. Use numbers with up to two decimal places; commas are optional. No information is saved or submitted.
- Commission before HST
- HST on commission
- Commission including HST
- Total selling expenses
- Remaining before mortgage payout
- Mortgage balance entered
- Estimated proceeds after entered mortgage payout
Your entered costs and mortgage exceed the selling price. You may need additional funds at closing.
Only entered costs are deducted. The default example includes no mortgage balance, penalties or additional staging costs.
Private calculation. No sign-up required.
Planning estimate only, not a quote, tax calculation or closing statement. HST is calculated on commission only; enter other expenses inclusive of applicable taxes. Add costs or adjustments owed, and confirm mortgage payouts with your lender. Credits and reimbursements are not modelled. Confirm current rates and your final proceeds with your lawyer and service providers.
Want to Learn More About Selling Your Home in Ontario?
Understanding seller’s closing costs is only one part of preparing for a successful sale.
Watch: Seller’s Closing Costs in Ontario
In my video, I share practical advice to help homeowners understand the selling process and prepare their property for the market.
Get My Free Seller’s Guide
Planning to sell your home but not sure where to start?
I’ve put together a step-by-step Seller’s Guide to walk you through the process of selling a house in Ontario, from preparing your property and choosing the right pricing strategy to marketing, reviewing offers and closing the sale.
Whether you’re selling your first home or have been through the process before, this guide will help you understand what to expect and how to prepare.
Final Thoughts: Preparing Your Home for a Successful Sale
Selling a home involves more than simply putting a For Sale sign on your lawn.
The good news is that not every expense is necessary, and not every improvement is worth making.
An experienced real estate agent can help you identify where spending money makes sense, where it doesn’t, and how to position your property competitively without unnecessary expenses.
Thinking about selling your home in King City, York Region or the surrounding areas?
I’d be happy to walk you through the selling process, explain what costs to expect and help you prepare a strategy tailored to your property.
Marina Selby | Your Local King City REALTOR®
647-558-4818
Helping Ontario homeowners sell with confidence.
Frequently Asked Questions About Seller’s Closing Costs in Ontario
How much does it cost to sell a $1 million house in Ontario?
In our example, the selling expenses total approximately $62,000, including a 5% commission plus HST, legal fees, cleaning, repairs and moving. Actual costs depend on your agreed commission, property condition, mortgage and additional services.
Do sellers pay closing costs in Ontario?
Yes. Sellers generally pay their own legal fees, applicable mortgage discharge costs, outstanding property expenses and closing adjustments.
However, certain closing-related expenses and adjustments may be negotiated as part of the purchase agreement.
In a buyer’s market, buyers may have more negotiating power and can sometimes request that sellers contribute toward specific expenses or provide a price adjustment.
In a seller’s market, buyers competing for a desirable property may offer more favourable terms, including agreeing to cover certain additional expenses, to strengthen their offer.
My advice: Look at the complete offer, not just the purchase price. Understanding which costs and terms can be negotiated can make a meaningful difference to your final proceeds.
Are realtor commissions negotiable in Ontario?
Yes. Real estate commissions are negotiable, and there is no mandatory commission percentage. Always review the services included and compensation terms before signing a listing agreement.
Do I have to pay capital gains tax when selling my primary residence in Ontario?
Generally, if the property was your principal residence throughout your ownership and qualifies for the full exemption, you won’t pay capital gains tax on the sale. However, you must report the sale to the CRA.
All amounts are approximate, in Canadian dollars, and intended for general planning. Actual costs depend on the property, service providers and transaction. This 2027 planning guide reflects rules checked on October 29, 2026; confirm current tax rules, rates and lender terms before selling.
Reference information: RECO Information Guide; CRA GST/HST rates; FCAC mortgage prepayment penalties; CRA principal residence guidance. Service-cost estimates and the example are for illustration, not provider quotations.