Cost of Selling a House & Seller Closing Costs Calculator

Frequently asked questions

What closing costs does a home seller pay in Canada?

A seller's closing costs are typically: real estate commission plus GST/HST on it (the largest item, and negotiable), legal fees for the sale (usually lower than on a purchase), a mortgage discharge fee, any mortgage prepayment penalty if you break a closed term early, and adjustments for property tax, condo fees and utilities paid past the closing date. Sellers do not pay land transfer tax — the buyer does. Some provinces add items such as a Real Property Report in Alberta.

How much does it cost to sell a house in Canada?

Total selling costs often land around 4–7% of the sale price when a full-service commission applies, once realtor commission (plus GST/HST on the commission), legal fees, a mortgage discharge fee, and any other selling costs are combined — but there is no fixed national percentage. Commission is the largest single piece and is not regulated — the rate on your listing agreement is what actually applies.

Is GST or HST charged on real estate commission?

Yes. Commission is a taxable service, so sales tax applies to the commission itself — 5% GST in most provinces, 13% HST in Ontario, and higher HST rates in Atlantic Canada. This is separate from any tax on the sale of the home itself.

What is net proceeds when selling a house?

Net proceeds is the sale price minus everything it costs to sell — commission and its sales tax, legal fees, the mortgage discharge fee, other selling costs — and minus whatever mortgage balance is still owing. It's the actual amount you walk away with at closing.

Do I pay capital gains tax when I sell my house?

Generally, no tax is payable if the property qualified as your principal residence for every year you owned it — that gain is fully exempt under the CRA's principal residence exemption. Partial rental or business use, a change in use, owning more than one property at once, or periods of non-residency can change that result, so it isn't automatic in every situation. Since 2016, you still have to report the sale even when no tax is owed: file Schedule 3 and Form T2091(IND) with your tax return for that year, designating the property as your principal residence. Skipping this filing can trigger CRA penalties, so it isn't purely optional paperwork.

What is a mortgage discharge fee?

A one-time administrative fee your lender charges to release (discharge) their claim on the property once your mortgage is paid off at closing. The Financial Consumer Agency of Canada describes the lender's own discharge fee as ranging from no charge up to about $400, separate from any prepayment penalty for breaking a fixed-rate term early; the professional (lawyer or notary) costs to actually register the discharge typically run $400–$2,500 on top of that. Check your mortgage statement or ask your lender for the exact figures on your file.

Can I negotiate real estate commission in Canada?

Yes. Commission rates are not set or regulated by any provincial or federal body in Canada — every percentage is a starting point on a listing agreement, not a legal minimum. Every rate field in this calculator is editable so you can enter what's actually on your own agreement rather than a generic average.

Do I pay land transfer tax when I sell my house?

No. Land transfer tax (or BC's Property Transfer Tax) is paid by the buyer as part of their closing costs, not by the seller — it isn't part of the cost of selling at all. See the Land Transfer Tax Calculator if you're also buying your next home.

What if I owe more on my mortgage than my house sells for?

This is sometimes called being "underwater" on a mortgage. You'll need your lender's approval to complete the sale, since the payout won't fully discharge the mortgage — some lenders allow the shortfall to be rolled into a new loan or require it repaid separately at closing. Talk to your lender and a real estate lawyer before listing if your remaining mortgage balance is close to or above your expected sale price.