Realtor fees in Ontario are not regulated — they are negotiated between the seller and the listing brokerage. The most common structure in the GTA is 4–5% of the sale price plus HST, split between the listing brokerage and the co-operating (buyer's) brokerage. What follows is how the math actually works on a typical Toronto resale, plus the levers you can negotiate.
In this guide, we cross-reference How to Calculate Realtor Fees, Closing Costs When Selling, What Does BAC Mean?, and Sell Without an Agent — click through whenever you want to go deeper on a related concept.
Typical GTA Commission Structure
The most common Toronto-area structure is:
- Total commission: 4–5% of the sale price.
- Listing-side share: 2–2.5%.
- Co-operating brokerage (buyer agent) share (BAC): 2–2.5%.
- HST: 13% added to the total commission.
Worked Example
On a $1,000,000 Toronto home at 5% total commission:
| Item | Amount |
|---|---|
| Total commission (5%) | $50,000 |
| HST on commission (13%) | $6,500 |
| Total cost to seller | $56,500 |
| Listing brokerage share (2.5%) | $25,000 + HST |
| BAC to buyer brokerage (2.5%) | $25,000 + HST |
Who Pays the Buyer's Agent?
Traditionally the seller pays both sides through the listing commission, with the BAC published on the MLS. CREA rules now allow buyer agents to negotiate compensation directly with their buyer client through the Buyer Representation Agreement, but in practice in Ontario the seller still funds the BAC in the vast majority of resale transactions.
What Is Actually Negotiable
- Total commission percentage — within reason.
- BAC offered to the co-operating brokerage.
- Length of the listing term and holdover period.
- Marketing extras: video, virtual staging, premium photography.
HST and Commission
HST (13% in Ontario) is charged on the realtor's commission for resale homes. New construction has different HST rules — see your real estate lawyer. HST is not charged on the home purchase price for resale residential property.
Discount and Flat-Fee Models
Discount brokerages offer 1–3.5% total commission, often with reduced services. Flat-fee mere postings range $500–$1,500 for MLS exposure only. Make sure you understand what is included before signing.
Frequently Asked Questions
Is realtor commission negotiable in Ontario?+
Yes. Commission is fully negotiable between the seller and the listing brokerage. The Competition Bureau of Canada has confirmed there is no fixed or recommended rate.
Do I pay HST on real estate commission?+
Yes. The realtor's commission attracts 13% HST in Ontario. The HST is paid out of sale proceeds at closing along with the commission itself.
What is the average GTA commission in 2026?+
Most full-service GTA listings price between 4% and 5% total. The listing side and the co-operating side typically split that evenly (2–2.5% each).
Can I refuse to pay the buyer's agent?+
You can list with a $0 or $1 BAC, but it dramatically reduces buyer-agent traffic. Most successful Toronto sellers offer market-standard BAC to attract maximum buyers.
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