How Does Real Estate Commission Work in Ontario?

By Deanna Mendes, elevated & co. realty

The short answer: In Ontario, the seller usually pays total real estate commission of 4–5% plus HST, split between the listing brokerage and the buyer’s brokerage. On a $1.2M sale at 5%, that’s about $67,800 total. Commission is negotiable, but what matters most is whether the service and outcome justify what you pay.

Commission is one of the most misunderstood parts of selling a home in Ontario.

Most people know it exists, but fewer understand who actually pays it, how it is split, what it should cover, and what changed under the newer TRESA rules.

This is where a lot of bad decisions start. Sellers fixate on the percentage without understanding the structure. Buyers assume they never have exposure. Both sides often walk into agreements without enough clarity.

How Does Real Estate Commission Work in Ontario?

Real estate commission is usually a percentage of the final sale price, paid by the seller at closing from the sale proceeds.

The most common structure is 4% to 5% plus 13% HST, split between the listing brokerage and the buyer’s brokerage.

The exact rate is negotiated before the property goes to market and documented in the listing agreement.

Reality check: Commission is not fixed by law. It is negotiated. The real question is whether the fee matches the execution and outcome.

Who Pays Real Estate Commission in Ontario?

In most Ontario transactions, the seller pays the total commission at closing.

The listing brokerage then pays the buyer’s brokerage their share from that amount.

Buyers usually do not pay directly, but they are still affected by how commission is structured.

What Changed Under the 2024 TRESA Rules?

The newer TRESA framework made buyer representation more explicit.

Buyers now sign written agreements that clearly define commission expectations. If a listing offers less than what was agreed, the buyer may need to cover the difference.

Reality check: Buyers are not suddenly paying in every deal — but expectations are now clearly documented upfront.

What Should a 5% Commission Actually Buy?

A 5% commission should deliver a full strategy — not just an MLS listing.

Strategic pricing analysis
Professional photography and floor plans
Video where appropriate
Paid marketing beyond MLS
Buyer-agent outreach
Open house strategy
Weekly communication
Negotiation expertise
Closing coordination

Reality check: If you are paying full service, you should be getting full service.

Frequently Asked Questions

Can I negotiate real estate commission when selling my home in Ontario?
Yes. Real estate commission is negotiable in Ontario and is agreed upon before you sign a listing agreement. When comparing options, look beyond the rate and consider the marketing, negotiation, communication, and overall strategy being provided.

How much real estate commission do sellers typically pay in Burlington or Hamilton?
Most full-service listings in Burlington and Hamilton fall between 4% and 5% plus HST, although rates can vary. The exact amount depends on the brokerage, service level, and listing strategy. Before making a decision, ask what is included and how the commission is structured.

Is choosing the lowest commission rate the best way to save money when selling?
Not necessarily. A lower commission can reduce upfront costs, but it may also come with less marketing, weaker negotiation, or fewer services. The most important number is your final net proceeds, not simply the fee you pay to sell the home.