As real estate agents, we’re often asked – How much are closing costs in Ontario? Closing costs for sellers are different than they are for buyers.
Selling a home in Ontario involves more than just finding a buyer and signing on the dotted line. To ensure a smooth transaction and avoid unexpected expenses, it’s crucial to understand the various closing costs that sellers typically incur.
There are a few expenses you’ll need to budget for before handing over the keys. Let’s break down the typical closing costs in Ontario that most home sellers will encounter when selling a home.
Real Estate Commission
One of the major closing costs for sellers is real estate commissions.
In Ontario, real estate commission usually runs between 3.5% and 5% of your sale price. That fee is typically split between your agent and the buyer’s agent — think of it as a team effort to get your home sold.
Example: If your home sells for $800,000, a 5% commission = $40,000 (plus HST) split between the buyer’s agent and seller’s agent.
Pro tip: While commissions can feel hefty, a skilled real estate team like us earns our weight in gold by negotiating higher offers and guiding you through a smooth sale, potentially offering numerous value-added services throughout the process.
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Legal Fees: Your Lawyer’s Time to Shine
Real estate lawyers handle all the behind-the-scenes magic: reviewing documents, ensuring clear title, drafting the deed and transferring funds. Their fees usually fall in the $1,000 to $2,000 range, depending on the complexity of the deal.
Think of this as paying for peace of mind — and for making sure you don’t accidentally sign your neighbour’s garage over to someone else.
Mortgage Discharge & Prepayment Penalties
Still have a mortgage on the property? Your lender will charge a discharge fee — typically $200 to $500 just to wrap it up.
But wait, there’s more! If you’re breaking your mortgage term early, you might owe a prepayment penalty, often equal to three months’ interest or the interest rate differential (whichever is higher).
Definitely call your lender early in the process to get a sense of what you might owe if you’re going to be discharging early or if it can be ported to the new home.
Home Staging & Fix-Ups: Polishing the Gem
First impressions matter. If your home needs a little TLC or could use that “HGTV glow-up,” you might consider hiring a stager. Expect to pay $1,500 to $4,000, depending on the size and style of your home.
Fresh paint, squeaky door fixes, updated light fixtures — it all helps buyers fall in love (and potentially pay more). These steps are optional but powerful!
Tip: Our team of experienced agents has a team of stagers that will come well in advance of listing your home for a consultation to determine the best approach to the staging process and what might be involved.
Pre-Listing Inspection: Know Before They Do
Not required, but some savvy sellers order their own home inspection before listing — usually around $300 to $700. Why? To uncover issues early and avoid last-minute surprises during negotiation.
Think of it as checking your teeth before a dentist appointment. It is better to be aware of potential buyer issues in advance to either address the issues or at least be aware of them.
Status Certificate (For Condo Sellers Only)
Selling a condo? You’ll need to order a Status Certificate, which gives the buyer a full snapshot of the condo corporation’s finances, reserve funds, rules, etc.
Cost? Just $150 — a small but essential step.
Capital Gains Tax (If It’s Not Your Main Home)
If the home you’re selling is your primary residence, good news: no capital gains tax. But if it’s an investment property or cottage, the CRA will come knocking.
You’ll owe tax on 50% of the profit at your marginal tax rate. Talk to an accountant — don’t guess this one! If you need a good accountant, feel free to reach out to us for a referral.
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Moving Costs: Time to Box It All Up
Whether you DIY with pizza and a U-Haul or go for full white-glove service, moving costs can add up. Set aside $1,000 to $3,000+, depending on how far and how much stuff you’re hauling.
Tip: book early — movers get snapped up fast in peak seasons.
Final Adjustments: Sharing the Bills
On closing day, you’ll need to settle any prepaid expenses, like property taxes, utilities, or condo fees. These are pro-rated based on your move-out date, and some will be addressed with your lawyer.
Example: if you prepaid taxes until the end of the month, but sell mid-month, the buyer reimburses you the unused portion. (through the lawyers closing the deal).
How Much Are Closing Costs in Ontario? Cheat Sheet
| Cost | Typical Amount |
|---|---|
| Real Estate Commission | 3.5% – 5% of sale price + HST |
| Legal Fees | $1,000 – $1,600 |
| Mortgage Discharge Fee | $200 – $350 |
| Mortgage Prepayment Penalty | Varies (check with lender) |
| Home Staging | $1,500 – $4,000 |
| Pre-Listing Inspection | $300 – $500 (optional) |
| Condo Status Certificate | $100 |
| Capital Gains Tax | Varies (if not a primary residence) |
| Moving Costs | $1,000 – $3,000+ |
| Adjustments (Taxes, Utilities) | Prorated based on move-out |
Budget Smarter, Sell Better
Selling a home in Ontario can feel like a whirlwind, but with the right planning, you’ll navigate it like a pro.
Need help calculating your closing costs or prepping your home for sale? Whether it’s staging, pricing, or paperwork, we’ve got you covered. Call (416-884-8027) or email (team@amblerhomes.com) today!
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