What Does a Seller
Actually Take Home?
Your sale price is the headline. Your net proceeds are the reality, and there is usually a significant gap between the two.
Updated August 2026
The Sale Price Is Not Your Net
When a client calls me after accepting an offer, the first thing they want to know is: "So what do I actually get?" It's the right question, and the answer is never just the sale price.
With a $450,000 mortgage balance and the illustrative costs below, a $900,000 sale would leave roughly $395,000 after commission, HST, your lawyer's fees, the mortgage payoff, and closing adjustments. That is a very different number than the $900,000 headline, and it is the one that actually reaches your bank account. Most of the gap here is simply repaying the mortgage, not the cost of selling. For a broader walkthrough of the process, see our guide to selling in Toronto.
Here's what a typical closing looks like on a $900,000 sale with a $450,000 mortgage balance. These figures are illustrative; your own numbers will vary with your remuneration agreement, mortgage, and closing adjustments.
What Comes Off the Top
Seller costs fall into a few categories. Some are fixed, some are percentage-based, and a few can catch you off guard if you haven't planned ahead.
Real estate remuneration is negotiable and must be set out clearly in the applicable representation agreements. A seller's representation agreement identifies the amount payable to the seller's brokerage for its services and representation and, separately, the amount, if any, the seller agrees to pay to compensate the buyer for the buyer's brokerage fees. The buyer remains responsible for the fees owed under their buyer representation agreement, even when the seller agrees to provide compensation.
For illustration only, a 5% total percentage-based outlay on a $900K sale is $45,000. HST of 13% applies on top of a taxable remuneration amount, adding roughly $5,850 in this example for a total of about $50,850.
You'll need a real estate lawyer to handle your closing. Seller legal fees and disbursements vary by lawyer and transaction complexity. For planning, many sellers obtain quotes in the low thousands, but confirm whether the quote includes HST, disbursements, mortgage discharge work, and any additional charges.
Your lender is paid from the sale proceeds on closing day. Whatever is outstanding on your mortgage at that point, principal plus accrued interest, is paid to the bank before any money reaches you. This is often the single largest deduction. It is a repayment of borrowed money, not a cost of selling.
These are two different costs. A discharge or administration fee is what the lender charges to remove the mortgage from title. A prepayment penalty applies when you pay out a closed mortgage early, for example when you sell mid-term.
On a fixed-rate mortgage, the penalty is often the greater of three months' interest or the interest rate differential (IRD). On a variable-rate mortgage it is commonly three months' interest, though terms vary by lender and contract. Ask your lender for a payout statement, and confirm whether it includes the penalty, discharge fee, and accrued interest.
At closing, the lawyers calculate applicable adjustments such as property taxes and, where relevant, condominium fees, rents, or other prepaid property expenses. An adjustment may be a credit to you or a deduction, depending on what has already been paid. Metered utilities are often finalized directly with the provider rather than prorated through closing.
Not a closing cost, but a real one. Professional staging can range from light consultation and styling to several thousand dollars for furniture rental and full-home staging, depending on whether the home is occupied or vacant, the number of rooms, and the rental period. These are out-of-pocket costs before closing, not deductions your lawyer takes from proceeds, so obtain a property-specific quote.
How Seller Remuneration Works
Real estate remuneration in Ontario is negotiable; there is no standard or legally fixed rate. It is documented in your representation agreement, which sets out two things: the amount payable to your own brokerage for its services and representation, and, separately, the amount, if any, you agree to pay to compensate the buyer for the buyer's brokerage fees. The buyer remains responsible for the fees owed under their buyer representation agreement, even when the seller agrees to contribute. In my experience, many Toronto sellers encounter total percentage-based structures in the approximate 3.5% to 5% range, but that is not an official standard, and the actual arrangement is whatever the agreements say.
One thing many sellers don't realize until they review the numbers: HST is added on top of a taxable remuneration amount. It is charged on the service the brokerages provide, like any other professional service in Ontario. Using the illustrative 5% total on a $900,000 sale, that is $45,000, plus $5,850 in HST, for a true cost of about $50,850.
What If the Numbers Don't Work?
Sellers who have built substantial equity may receive meaningful proceeds, but the amount depends on the secured debt against the property and the transaction costs, not simply on how long the home has been owned. Where the mortgage balance is close to the expected sale price, the net after commission and fees can be small, or even negative.
This happens most often with recent purchases, situations with a large home equity line of credit (HELOC), or properties that have not appreciated enough to absorb selling costs. It is worth running the numbers before committing to a sale.
Net Proceeds Calculator
Enter your numbers below to see an estimate of what you would take home. Every field is editable; adjust each line to match your situation. HST on commission is calculated automatically. The commission field represents your total percentage-based outlay for this illustration, not an official standard rate. For a starting sale price, try our home valuation.
Seller Cost Questions
The main costs of selling a house in Toronto are real estate remuneration (negotiable and set out in your representation agreement, plus 13% HST), legal fees and disbursements, any mortgage discharge or prepayment costs, and closing adjustments such as property taxes. Staging, repairs, and moving are additional out-of-pocket costs. As an illustration only, on a $900,000 sale with a 5% total commission the commission and HST alone come to about $50,850; your own costs will depend on your agreements, mortgage, and property.
Real estate remuneration in Ontario is negotiable and not set by law; there is no standard or legally fixed rate. It is documented in the seller's representation agreement, which sets out the amount payable to the seller's brokerage for its services and representation and, separately, the amount, if any, the seller agrees to pay to compensate the buyer for the buyer's brokerage fees. The buyer remains responsible for the fees owed under their buyer representation agreement. HST of 13% applies. As an illustration, a 5% total commission on a $900,000 sale is $45,000 plus $5,850 in HST, for about $50,850. Always confirm the all-in figure, including HST, before signing.
Yes. Real estate remuneration is a taxable service in Ontario, so HST of 13% applies on top of the commission amount. A seller who budgets for "5% commission" without accounting for HST will find the actual cost is closer to 5.65% of the sale price on a percentage-based deal. The commission and applicable HST are normally paid from the sale proceeds through the closing process and should appear in your lawyer's final accounting.
Net proceeds are the cash remaining after transaction costs (commission and HST, legal fees, discharge fees), secured debts (your mortgage and any HELOC), closing adjustments, and any other included expenses are deducted from the sale price. It is the amount that actually reaches your bank account, which is typically well below the headline sale price. Your mortgage payoff is repaying money you already borrowed rather than a cost of selling.
Possibly. If you break a fixed-rate mortgage mid-term, your lender may charge a prepayment penalty, often the greater of three months' interest or the interest rate differential (IRD). Variable-rate mortgages are commonly three months' interest, though terms vary by lender and contract, and a separate discharge or administration fee may also apply. Some mortgages are portable or open, which can reduce or avoid a penalty. Ask your lender for a payout statement before you list so the estimated figure is known.
If the home qualifies for the full principal residence exemption, the gain is generally sheltered from tax, but you must still report the sale and designate the property on your income-tax return. If it was rented, used for business, held as a secondary property, or did not qualify for the full exemption, some or all of the gain may be taxable; the current inclusion rate is generally 50%, though rules can change. Rental properties may also trigger recapture of previously claimed capital cost allowance, and property owned for fewer than 365 consecutive days may fall under the residential property-flipping rule, which treats the profit as business income unless an exception applies. Speak with an accountant before listing if any of these apply.
Toronto Realtor® with Property.ca and founder of Own In Toronto. Dave helps sellers estimate their net proceeds, weigh the cost of selling, and plan the timing of a sale and purchase. Talk through your numbers.
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