realtor commission calculator for ontario

Commission Formula:

\[ \text{Commission} = \text{Sale Price} \times \frac{\text{Commission Rate}}{100} \]

Commission Amount:

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1. What is Realtor Commission?

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

2. How Commission is Calculated

The standard commission calculation is:

\[ \text{Commission} = \text{Sale Price} \times \frac{\text{Commission Rate}}{100} \]

Where:

$ \text{Sale Price} $ — Final selling price of the property in CAD
$ \text{Commission Rate} $ — Agreed percentage rate (typically between 3.5% to 5% in Ontario)

Note: The total commission is often split between the buyer's and seller's agents, and may include HST in Ontario.

3. Typical Commission Rates in Ontario

Details: In Ontario, typical commission rates range from 3.5% to 5% of the sale price, though these are negotiable. The rate may vary based on:

Property value (higher-value properties may have lower percentages)
Local market conditions
Services included in the agreement
Agent experience and reputation

4. Using the Calculator

Instructions: Enter the expected or actual sale price of the property in Canadian dollars and the agreed commission rate (percentage). The calculator will compute the total commission amount.

Example: For a $500,000 home at 5% commission, the total fee would be $25,000.

5. Frequently Asked Questions (FAQ)

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

Q2: Who pays the realtor commission?
A: Typically the seller pays the commission, which is then split between the buyer's and seller's agents.

Q3: Does the commission include HST?
A: No, HST (13% in Ontario) is added to the commission amount. Our calculator shows pre-tax amounts.

Q4: Are there fixed-fee alternatives?
A: Some discount brokerages offer flat-fee services, but these may include fewer services than traditional agents.

Q5: How is the commission split?
A: Typically the total commission is split between listing and buying brokerages (often 50/50), then each brokerage splits their portion with their agent.