1. What is Real Estate Commission?

Real estate commission is the fee paid to real estate agents for their services in buying or selling property. In Ontario, this is typically a percentage of the final sale price of the property.

2. How Commission is Calculated

The standard commission calculation formula is:

Where:

• Sale Price — Final selling price of the property in CAD
• Commission Rate — Percentage agreed upon between seller and agent

Note: The total commission is often split between the buyer's and seller's agents.

3. Typical Commission Rates in Ontario

Details: In Ontario, total commission rates typically range between 3-5% of the sale price, with:

• 2-2.5% going to the listing agent
• 1-2.5% going to the buyer's agent

4. Using the Calculator

Tips: Enter the property sale price in CAD and the commission rate as a percentage (e.g., 5 for 5%). The calculator will compute the total commission amount.

5. Frequently Asked Questions (FAQ)

Q1: Are commission rates negotiable in Ontario?
A: Yes, commission rates are always negotiable between the seller and their real estate agent.

Q2: Who pays the commission in a real estate transaction?
A: Typically the seller pays the commission, which is deducted from the sale proceeds at closing.

Q3: Is HST included in the commission?
A: No, HST (13% in Ontario) is added to the commission amount and paid separately.

Q4: What's the average commission in Toronto?
A: In the Greater Toronto Area, total commission typically ranges from 3.5-5% of sale price.

Q5: Are there flat-fee alternatives?
A: Yes, some brokerages offer flat-fee or limited-service options at lower rates.