How Much Will You Actually Walk Away With After Selling Your Home in Canada?
Commission, legal fees, mortgage penalties, and HST — your net sale proceeds are never the sale price. Here's every deduction Canadian home sellers need to know.
How Much Will You Actually Walk Away With After Selling Your Home in Canada?
The sale price on your listing is not what ends up in your bank account. Between realtor commissions, HST, legal fees, mortgage payout, and potential penalties, sellers routinely net 6–10% less than the sale price. Knowing these numbers before you list prevents expensive surprises.
The Major Deductions
Realtor Commission
In Canada, the total commission is typically 3.5%–5% of the sale price (split between listing and buyer agent), plus HST on the commission itself.
On a $900,000 sale at 4% + HST (Ontario):
- Commission: $36,000
- HST on commission (13%): $4,680
- Total: $40,680
Commission is negotiable and varies by market. Flat-fee and discount options exist but are not universal.
Legal Fees
$1,000–$2,000 for a real estate lawyer to handle discharge of mortgage, title transfer, and statement of adjustments.
Mortgage Payout and Penalty
If you have an existing mortgage, it must be discharged at closing. If you're mid-term, you'll pay a prepayment penalty — potentially thousands of dollars on a fixed-rate mortgage (IRD calculation).
If you're porting your mortgage to a new property, you may avoid the penalty.
Discharge Fee
Lenders charge $200–$400 to discharge the mortgage from title.
Property Tax Adjustments
If you've prepaid property tax beyond the completion date, you're reimbursed. If you're behind, it's deducted from proceeds.
Moving Costs
Professional movers in major markets: $1,500–$5,000 depending on distance and volume.
Capital Gains — When It Applies
Your principal residence is generally exempt from capital gains tax. But if you've rented the property, used part of it for business, or sold multiple properties within a short period, CRA may consider a portion of the gain taxable.
Flipping properties (bought and sold within 12 months) is now subject to the Residential Property Flipping Rule — gains are taxed as business income, not capital gains, eliminating the 50% inclusion rate benefit.
Try the Calculator
→ Home Sale Proceeds Calculator
Official Resources
- CRA — Principal Residence Exemption — when your gain is tax-free and when it isn't
- CRA — Residential Property Flipping Rule — anti-flipping rule for properties held less than 12 months
- FCAC — Selling Your Home — federal guide to costs when selling
- FCAC — Mortgage Prepayment Penalties — how penalties are calculated when you payout early