When you **sell a home in Ontario**, the biggest closing costs are usually the **real estate commission** and **legal fees**. A good rule of thumb is to budget **4% to 7% of the sale price**, depending on the commission agreement.
Typical seller closing costs
#### 1. Real estate commission
* Usually the largest expense.
* Commonly around **4% to 5% of the sale price**, plus HST.
* The commission is typically split between the listing agent and the buyer’s agent.
**Example on a $900,000 sale:**
* 5% commission = $45,000
* HST (13%) = $5,850
* Total = **$50,850**
#### 2. Lawyer fees and disbursements
* Typically **$1,000 to $2,500+**
* Covers:
* Preparing closing documents
* Paying out your mortgage
* Transferring title
* Registration and administrative costs
#### 3. Mortgage discharge fee
If you still have a mortgage:
* Lender discharge fee: often **$200 to $500**
* Your lawyer will arrange for the mortgage to be removed from title.
#### 4. Mortgage prepayment penalty
This can be significant if you’re breaking a mortgage before the end of the term.
* Variable-rate mortgages: often about **3 months’ interest**
* Fixed-rate mortgages: can range from a few thousand dollars to tens of thousands depending on rates and remaining term
It’s worth calling your lender for an exact payout statement before listing.
#### 5. Adjustments
You may need to credit the buyer for:
* Property taxes prepaid beyond the closing date
* Utilities or condo fees (if applicable)
These are usually relatively small amounts and are calculated by the lawyers.
#### 6. Moving and miscellaneous costs
* Movers
* Cleaning
* Repairs agreed to during negotiations
### Quick example
Selling price: **$900,000**
| Cost | Approximate Amount |
| Commission (5%) | $45,000 |
| HST on commission | $5,850 |
| Lawyer | $1,500 |
| Mortgage discharge | $300 |
| Total closing costs | **\~$52,650** |
Dave Dulmage
Heritage Realty Inc.
Office 905-689-0011
Direct 905-407-3441
dave@heritagerealty.ca
Instagram @davedulmage
www.davedulmagerealestate.ca
