Thinking of buying or selling a home in Ontario? It’s important to understand how much you’ll pay in brokerage fees. These fees cover the cost of hiring a real estate agent to help with your transaction. Knowing how they work can help you plan your budget.
Most agents in Ontario work on commission. This means they earn a percentage of the home’s selling price. The typical rate is between 4% and 6%, but it can vary based on the agent and market conditions.
To estimate your real estate brokerage fees in Ontario, multiply the sale price of your home by the commission rate. For example, if your home sells for $800,000 and the commission is 5%, the total fee is $40,000.
The total commission is usually split between the buyer’s and seller’s agents. In a 5% commission deal, each agent may receive 2.5%. This means the seller pays $20,000 to each agent.
Some brokerages charge extra for marketing, staging, or administrative fees. Always ask your agent if there are any additional costs beyond the commission.
Commission rates are not fixed. You can negotiate with your agent, especially in competitive markets. Some agents may offer lower rates or flexible pricing options.Understanding real estate brokerage fees in Ontario helps you budget better and avoid surprises. Always discuss costs with your agent before signing any agreements. This way, you know exactly what to expect when buying or selling a home.