The Cost of Selling a Home in Ontario: A Comprehensive Guide
Selling a home in Ontario comes with several costs that homeowners must consider to maximize their profits. Whether you’re selling in the Greater Toronto Area (GTA) cities such as Toronto, Mississauga, Oakville, Burlington, or Milton, understanding the expenses involved can help you plan accordingly. This guide breaks down the key costs associated with selling your home in Ontario.
1. Real Estate Commission Fees
One of the largest expenses when selling a home is the real estate commission. Typically, real estate agents in Ontario charge between 4% to 5% of the home’s sale price, split between the seller’s and buyer’s agents. For example:
- If you sell a home for $1,000,000 in Mississauga, a 5% commission would amount to $50,000 before tax.
- In competitive markets like Toronto and Oakville, some sellers negotiate lower commissions or explore flat-fee brokerage options.
2. Legal Fees and Disbursements
A real estate lawyer is required to handle the closing process, ensuring all documents are legally sound. Legal fees typically range from $1,500 to $2,500 and may vary depending on the complexity of the transaction.
- A seller in Burlington may pay around $2,000, covering the preparation of mortgage discharge statements and finalizing sale agreements.
3. Home Staging and Photography
In a competitive market like Toronto or Oakville, professional staging and high-quality photos can significantly impact your sale price and speed. Costs include:
- Home staging: $1,500 to $5,000 (depending on home size and duration)
- Photography & virtual tours: $200 to $800
- In Milton, where buyers often look for well-presented homes, staging can be a game-changer for attracting offers.
4. Mortgage Prepayment Penalties
If you have an existing mortgage, you may need to pay penalties for breaking your term early. This depends on your lender and mortgage type:
- Variable-rate mortgage: Usually a 3-month interest penalty
- Fixed-rate mortgage: May require an Interest Rate Differential (IRD) penalty, which can be costly
- A homeowner in Oakville with a fixed mortgage may face penalties of $5,000 to $20,000, depending on their mortgage balance and interest rate.
5. Capital Gains Tax (If Applicable)
If the home being sold is not your primary residence, you may be subject to capital gains tax on 50% of the profit. This is especially relevant for investment properties in cities like Toronto and Mississauga, where home values have significantly appreciated.
6. Moving Costs
Whether you are relocating within Burlington or Mississauga or moving out of Ontario, moving expenses can add up:
- Local moves: $1,000 – $3,000
- Long-distance moves: $5,000+
Hiring professional movers can ease the transition, especially in busy GTA cities.
7. Additional Costs to Consider
- Home inspection (if pre-listing): $400 – $600
- Property repairs & touch-ups: Variable, often $1,000 – $10,000
- Utility and property tax adjustments: Depends on closing date
- Status certificate (for condos): $100 – $200
Cost Calculator
To help you estimate your total selling costs, use the simple cost calculator below. Enter your estimated home selling price, and the calculator will provide an approximate breakdown of key expenses.
Cost Calculator
Final Thoughts
Selling a home in Toronto, Mississauga, Oakville, Burlington, or Milton involves multiple costs beyond just the sale price. Being aware of these expenses ensures a smooth transaction and prevents unexpected financial surprises. By planning ahead and working with experienced professionals, you can maximize your home sale’s profitability.
If you’re considering selling your home, consult with a local real estate agent and financial advisor to get a tailored estimate of your selling costs.
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