Answer first: selling a home in Ontario costs more than commission. Budget for commission, legal fees, mortgage discharge costs and any prepayment penalty, prep and staging, moving, and closing adjustments. Land transfer tax does not apply to sellers.
Most sellers focus on their expected sale price and forget to plan for what comes out of it. Commission is the obvious one, but it isn't the only cost, legal fees, mortgage discharge charges, prep work, and moving all add up. Here's what to actually budget for before you list in Mississauga or anywhere else in the GTA.
(For buyer-side costs like land transfer tax, see our full Closing Costs guide, this post is seller-focused.)
1. Real estate commission
Commission is negotiated individually between a seller and their brokerage, Ontario doesn't set a standard rate, and any brokerage that presents its rate as fixed or non-negotiable should raise a question. Commission is typically structured as a percentage of the final sale price, split between the listing brokerage and the buyer's brokerage. Ask your agent for their commission structure in writing before signing a listing agreement, under TRESA, your representation agreement must clearly set out how your agent is compensated.
2. Legal fees
A real estate lawyer handles your title transfer, mortgage discharge instructions, and closing documents. Get a quote directly from a licensed Ontario real estate lawyer before listing, fees vary by firm and by file complexity, so this is one line item worth calling around for rather than assuming a number.
3. Mortgage discharge costs
If you have an existing mortgage, your lender will charge a discharge fee to release it at closing. If you're selling before your term is up, you may also face a prepayment penalty, this can be significant depending on your lender and how much time is left on your term. Request a payout statement from your lender early; it's the single easiest cost to underestimate.
4. Home prep, repairs and staging
Buyers respond to presentation. As we cover in our staging and photography guide, a proper staging and photography investment is one of the more controllable costs in the entire process, and one of the few that can directly influence how fast your home sells and at what price.
5. Moving costs
Movers, storage, and incidental costs of the move itself are easy to forget when budgeting around the sale, build them in early rather than treating them as an afterthought at closing.
6. Closing adjustments
At closing, property taxes and any prepaid utilities are prorated between you and the buyer. This is usually a small credit or debit, but it should show up on your lawyer's statement of adjustments, ask about it upfront so it's not a surprise.
7. Capital gains, know when it applies
If the home you're selling has been your principal residence for the entire time you owned it, the principal residence exemption generally means the gain isn't taxable. If it wasn't your principal residence for the full ownership period (a rental, a cottage, a second property), capital gains tax may apply. This is genuinely worth a conversation with an accountant before you list, not after, the exemption rules have real dollar consequences and this post isn't a substitute for that advice.
So what's the real number?
Every one of these varies by property, lender, and lawyer, which is exactly why a blanket percentage isn't useful. The fastest way to see your actual number is to plug your specifics into the Seller Net Proceeds Calculator, which walks through each of these line items and gives you an estimated range.
Related reading
- What's My Home Worth in the GTA?
- Selling Your Mississauga Home: Pricing Strategy
- Understanding Closing Costs in Ontario (buyer and seller)
- Sell Your Home in Mississauga and the GTA (start here)
- Seller FAQ
Disclosure: Mohammed Mustaf, Salesperson, HomeLife Miracle Realty Ltd., Brokerage. RECO Registration #6004851. This article is general information, not legal, financial, or tax advice. Consult a licensed lawyer, accountant, or mortgage professional for advice specific to your situation.