How much is real estate commission in Canada?
Commission is negotiable and typically ranges from 3.5% to 5% of the sale price, split between the listing brokerage and the buyer's brokerage. A common Ontario structure is 2.5% to the listing side and 2.5% to the buyer side. GST/HST is charged on top of the commission.
Is GST or HST charged on real estate commission?
Yes. Real estate commission is a taxable service, so GST/HST applies: 13% HST in Ontario, 15% in the Atlantic provinces, 12% in British Columbia (5% GST + 7% PST treatment varies), and 5% GST in Alberta. This adds meaningfully to the total the seller pays.
Who pays the real estate commission in Canada?
The seller customarily pays the entire commission out of the sale proceeds, which is then split between the listing and buyer brokerages. Because the seller funds both sides, commission is a major line item when calculating net proceeds after paying off the mortgage.
Is real estate commission negotiable?
Yes. There is no fixed or legally mandated commission rate in Canada. Sellers can negotiate the listing rate, use discount or flat-fee brokerages, or adjust the buyer-agent portion offered. Lower commission can increase net proceeds but may affect how aggressively the property is marketed or shown.