The Short Answer
Selling costs in Ontario commonly total 3% to 6% of the sale price. The largest items are commission, which is fully negotiable with no standard or legislated rate in Ontario, and 13% HST on that commission, which the seller pays. Legal fees are commonly quoted between $800 and $2,000 plus disbursements. A mortgage discharge costs roughly $260 to $340 at the major lenders plus an $80.50 Ontario registration fee. A condominium status certificate is capped by regulation at $100 including tax. The seller pays no land transfer tax in Ontario, and Markham has no municipal land transfer tax. The biggest avoidable surprise is a mortgage prepayment penalty, which on a fixed-rate mortgage can run into five figures.
Want this applied to your own property? Call the Kaizen Real Estate Team at (647) 370-8885.
The Full Line-by-Line
Cost | Amount | Notes |
|---|---|---|
Commission | Negotiable. No standard rate | Observed Ontario market practice has run roughly 3.5% to 5% combined |
HST on commission | 13% | Seller pays, on the full commission before any splits |
Legal fees | Roughly $800 to $2,000 | Plus disbursements. Sources differ; get a written quote |
Mortgage discharge fee | About $260 to $340 | Varies by lender |
Discharge registration, Ontario | $80.50 | Per discharge registered |
Collateral charge review | Add roughly $200 to $500 | Only where the mortgage is registered as a collateral charge |
Prepayment penalty | Varies widely | See below. Can reach five figures on a fixed-rate mortgage |
Status certificate, condominium | $100 maximum, including tax | Statutory cap. Must be provided within 10 days |
Staging | Roughly $1,000 to $2,500 occupied | Vacant staging runs considerably higher |
Land transfer tax | $0 | The buyer pays it in Ontario |
Michael John Lau, a REALTOR® with the Kaizen Real Estate Team, one of the most active real estate teams in Markham and York Region, walks sellers through this at the listing conversation rather than at closing, because two of these items can be reduced or avoided entirely if they are known about early.
Questions About Your Situation?
Every Markham property and every timeline is different. Call the Kaizen Real Estate Team at (647) 370-8885 and speak to a REALTOR® who works this market daily.
Commission: The Part Everyone Asks About
The most important fact is the one least often stated plainly.
Real estate commissions in Ontario are fully negotiable. There is no standard rate, no legislated rate and no board-mandated rate. Any claim that "5% is standard" is marketing language, not law.
Observed market practice in Ontario has run roughly 3.5% to 5% combined, commonly structured with a portion to the buyer's brokerage and a portion to the listing brokerage. Those are observations about what has been happening, not a rate card and not a recommendation.
One rule does bind. Under CREA's MLS® rules, a listing brokerage must offer cooperating compensation to the buyer's brokerage, and that amount can be any amount except zero. CREA confirmed in October 2025 that this rule remains in effect. The amount is negotiable; offering literally nothing through the MLS System is not permitted under that rule.
What has not changed
The United States NAR settlement did not change Canadian rules. CREA has stated there are different legal and factual circumstances between the Canadian litigation and the American matter, and confirmed its cooperating compensation rule unchanged. Do not assume American headlines about buyer agreements or MLS compensation display apply here.
What is live in Canada is litigation and regulatory attention. The Competition Bureau has an ongoing investigation into CREA's commission rules, expanded in February 2026 to include a British Columbia board. The Bureau has made no finding of wrongdoing and the matter is ongoing. Separately, a class action proceeding in Federal Court saw one national brokerage settle for $7.8 million in October 2025, without any admission of wrongdoing, with litigation continuing against others.
The HST detail that surprises sellers
A resale home carries no HST on its purchase price. The brokerage service, however, is a taxable supply, so 13% HST applies to the commission and the seller pays it.
On a $20,000 commission that is $2,600, for a total of $22,600. A seller of a personal-use resale home cannot recover it.
The Mortgage Penalty: The Big One
This is the cost that most often derails a seller's arithmetic, and it is entirely knowable in advance.
- Variable-rate mortgage: the penalty is generally three months' interest on the outstanding balance.
- Fixed-rate mortgage: the penalty is generally the greater of three months' interest or the Interest Rate Differential.
How the interest rate differential works
- Identify the time remaining in your term.
- The lender compares your contract rate against its current rate for a comparable remaining term.
- The difference is applied to your outstanding balance for the remaining term.
- That figure is compared to three months' interest, and the lender charges the higher.
There is no single standard IRD formula across Canadian lenders. Some use posted rates, some use discounted rates, some use proprietary methods. Two identical mortgages at two different lenders can produce materially different penalties.
Michael John Lau's recommendation is specific and it takes one phone call: get the penalty quoted in writing by your lender before you list. Ask at the same time whether the mortgage can be ported to your next property, which can avoid the penalty entirely.
Neeraj Moolchandani on the One Phone Call Worth Making First
Neeraj Moolchandani, REALTOR® at Kaizen Real Estate, sends every seller to their lender before anything else. Get the mortgage prepayment penalty quoted in writing.
On a fixed-rate mortgage it is generally the greater of three months' interest or the interest rate differential, and there is no single standard formula across Canadian lenders. Neeraj has seen it reach five figures and change whether selling now made sense at all. Ask about porting in the same call.
Adjustments at Closing
These can run in either direction and are calculated by your lawyer on the statement of adjustments. A fuller breakdown sits on the closing costs page.
- Property taxes are prorated to the closing date. If you prepaid beyond closing, the buyer credits you. If you are behind, you credit the buyer.
- Condominium common element fees are billed monthly in advance, so a mid-month closing usually produces a credit to the seller.
- Utilities prepaid beyond closing are adjusted.
- Rental property: rent collected in advance is adjusted, and last month's rent deposits must be handed over.
- Fuel oil remaining in a tank is adjustable, which matters on some older and rural properties.
Two Situations With Much Larger Costs
If you are a non-resident of Canada
This changes the timeline as well as the cost. A non-resident disposing of Canadian real property must obtain a Certificate of Compliance from the Canada Revenue Agency, with notification required within 10 days of the disposition.
Until the certificate is produced, the buyer's lawyer holds back 25% of the proceeds for ordinary capital property. A 50% rate can apply where the property is depreciable taxable Canadian property, such as a rental where capital cost allowance has been claimed, or property held as inventory.
CRA processing takes months. This is the single most common reason a non-resident seller does not receive their money on closing day. Anyone in this position should engage a cross-border accountant before listing, not after an offer.
If the property is not your principal residence for every year you owned it
- The capital gains inclusion rate is 50% for 2026. The proposed increase to two-thirds was cancelled in March 2025. Ignore any source still quoting 66.67%.
- Only one property per family unit per year can be designated as a principal residence.
- You must report the sale even when the exemption fully shelters the gain. Since 2016 the disposition goes on Schedule 3, with Form T2091 required where the property was not your principal residence for every year of ownership. The penalty for a late designation can reach $8,000.
- The residential property flipping rule treats a property sold within 365 days of purchase as business income rather than a capital gain, and the principal residence exemption does not apply.
Want the Real Net Number?
Two of the largest costs can be reduced or avoided when they are known about early. The Kaizen Real Estate Team puts them on the table at the listing conversation.
A Worked Example
An illustration only, on a home selling at Markham's August 2026 all-types average of $1,208,692, assuming a negotiated commission of 4%:
Item | Amount |
|---|---|
Commission at 4% | $48,348 |
HST at 13% on commission | $6,285 |
Legal fees | $1,400 |
Mortgage discharge fee | $300 |
Discharge registration | $80.50 |
Staging and photography | $2,500 |
Approximate total | $58,914, or about 4.9% of the sale price |
This excludes any mortgage prepayment penalty, adjustments, repairs and moving costs. To run it on your own home, start with a free home evaluation, and use the mortgage calculator for the financing side. The 4% commission figure is used purely to make the arithmetic visible and is not a quoted rate. Commission is negotiated between a seller and a brokerage in every transaction.
The complete selling process is in the complete 2026 seller's guide, and the private-sale alternative is costed in Selling Without a REALTOR® in Markham.
Next Steps
- Get a free Markham home evaluation — Run these numbers against your actual sale price.
- Closing costs explained — The full line-by-line in one place.
- Mortgage calculator — For the financing side of the move.