What Does a Seller
Actually Take Home?
Your sale price is the headline. Your net proceeds are the reality — and there's usually a significant gap between the two.
There's Always a Gap
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.
Between commission, your lawyer's fees, paying out your mortgage, and a handful of closing costs, a $900,000 sale might net you closer to $395,000. That's not a bad outcome — but it's a very different number than $900,000, and it's the one that actually hits your bank account.
Here's what a typical closing looks like on a $900,000 sale with a $450,000 mortgage balance:
What Comes Off the Top
Every seller cost falls into one of these categories. Some are fixed, some are percentage-based, and a few can catch you off guard if you haven't planned ahead.
Typically 3.5%–5% of the sale price total, split between the listing agent and the buyer's agent. This is paid by the seller at closing, deducted before proceeds flow to you. On a $900K sale at 5%, that's $45,000 in commission.
HST of 13% applies on top of that amount — adding another $5,850 in this example for a total commission cost of $50,850.
You'll need a real estate lawyer to handle your closing. Seller legal fees run $1,500–$3,000 all-in, covering the review of the agreement, discharge of your mortgage, and transfer of title. Budget $2,000–$2,500 as a realistic estimate.
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 wired directly to the bank before any money reaches you. This is often the biggest single deduction.
If you're breaking a fixed-rate mortgage mid-term, your lender will charge a prepayment penalty — typically the greater of 3 months' interest or the IRD (Interest Rate Differential). This can range from a few hundred dollars to $15,000+ on a large fixed mortgage. Variable-rate mortgages are usually just 3 months' interest. Ask your lender for a payout statement before you list.
At closing, your lawyer calculates prorated adjustments for property taxes and utilities. If you've pre-paid taxes beyond the closing date, the buyer credits you that amount. If taxes are owed up to closing, it's deducted from your proceeds. Usually a few hundred to a couple thousand dollars in either direction.
Not a closing cost, but a real cost. Professional staging runs $2,000–$5,000 for a typical Toronto home. Pre-sale repairs, decluttering, and cleaning add up too. These come out of pocket before closing — factor them in when deciding how much to invest in presentation.
What You're Actually Paying Your Agents
Commission in Ontario is negotiable — there's no fixed rate set by law. The typical range in Toronto is 3.5%–5% total, with the listing agent and buyer's agent each taking a share. A common structure is 2.5% to the buyer's agent and 2% to the listing agent, totalling 4.5%.
One thing many sellers don't realize until they see the statement of adjustments: HST is added on top of the commission percentage. It's charged on the service rendered by the agents, just like any other professional service in Ontario. A 5% commission on a $900,000 sale is $45,000 — plus $5,850 in HST — for a true cost of $50,850.
What If the Numbers Don't Work?
In most cases, sellers who've owned their home for several years will net a healthy amount — especially in Toronto, where property values have appreciated significantly. But there are situations where the math gets tight, and it's important to run the numbers before committing to a sale.
If your mortgage balance is close to your expected sale price, your net after commission and fees could be very small — or even negative. This happens most often with recent purchases, HELOC-heavy situations, or properties that haven't appreciated enough to absorb selling costs.
Net Proceeds Calculator
Enter your numbers below to see an estimate of what you'd actually take home. Every field is editable — adjust each line to match your situation. HST on commission is calculated automatically.
Want Me to Run the Real Numbers for Your Home?
Every sale is different. I'll pull comparable sales, factor in your specific costs, and tell you exactly what you'd net — before you commit to anything.
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