Costs, Comparisons and 2026 Rules
Cost of buying and selling a home in Canada: every fee and tax explained
A complete map of the costs of selling and buying a home in Canada in 2026, from realtor commission and HST to land transfer tax, legal fees and GST rebates.
Selling a home in Canada usually costs the seller a realtor commission plus GST or HST on that commission, legal fees and any mortgage payout costs. Buying costs the buyer land transfer tax (or Quebec's transfer duties), legal or notary fees, title insurance, inspection and closing adjustments, plus GST or HST if the home is new. Land transfer tax is paid by the buyer, not the seller, and commission is normally paid by the seller out of the sale proceeds. The size of each item depends heavily on your province and city, so the same $900,000 home can carry very different costs in Toronto, Calgary and Quebec City.
This page is the overview. Each section links to a detailed guide in the Costs, Comparisons and 2026 Rules group. All dollar figures below are illustrative.
Who pays what: the seller's side and the buyer's side
| Cost | Normally paid by | Set by | Negotiable? |
|---|---|---|---|
| Realtor commission | Seller (from sale proceeds) | Listing agreement | Yes |
| GST/HST on commission | Whoever pays the commission | Excise Tax Act (and QST in Quebec) | No, but follows the commission |
| Buyer's brokerage fee | Usually shared from seller's commission; buyer if the agreement says so | Buyer representation agreement | Yes |
| Land transfer tax / welcome tax | Buyer | Province and, in Toronto and Quebec municipalities, the city | No (relief for first-time buyers in some provinces) |
| Lawyer or notary fees | Each side pays its own | Professional's quote | Yes |
| Mortgage payout and discharge | Seller | Mortgage contract | Rarely |
| GST/HST on a new home | Buyer (often built into the builder's price) | Excise Tax Act | No (rebates may apply) |
| Property tax and condo fee adjustments | Shared by date of closing | Statement of adjustments | No |
The seller's costs
Commission. In Canada, commission is negotiated between the seller and the listing brokerage. It is usually a percentage of the sale price, sometimes tiered, and part of it is often offered to the brokerage that brings the buyer. Since October 2024, the Competition Bureau has been investigating whether CREA's commission rules discourage buyer agents from competing on price, which has put the amount offered to the buyer's side under scrutiny. Details are in how realtor commission works and what changed after the Competition Bureau investigation.
Sales tax on the commission. Commission is a taxable service. In Ontario, 13% HST is added; in Alberta, BC, Saskatchewan, Manitoba and the territories, 5% GST; in Nova Scotia 14% HST and in New Brunswick, Newfoundland and Labrador and PEI 15% HST; in Quebec, 5% GST plus 9.975% QST. On a $40,000 commission in Ontario, the HST alone is $5,200.
Legal fees and payout costs. Your lawyer (or notary in Quebec) discharges your mortgage and handles the transfer. Your lender may charge a discharge fee and, if you break a closed mortgage early, a prepayment charge. Get a payout statement before you choose a closing date.
Taxes on the sale itself. A home that qualifies as your principal residence is usually free of capital gains tax, but the sale must still be reported. Sales within 12 months can be caught by the federal residential property flipping rule, and in BC by the provincial home flipping tax. Non-resident sellers face withholding. See tax rules when you sell a home.
The buyer's costs
Land transfer tax. Most provinces charge a land transfer tax or similar tax. Alberta and Saskatchewan charge land titles fees instead, and Newfoundland and Labrador charges value-based registration fees on the deed and mortgage. Toronto adds its own Municipal Land Transfer Tax on top of Ontario's, and in Quebec the transfer duties are levied by the municipality. Read land transfer tax by province, then the guide for Ontario and Toronto, British Columbia or Quebec.
Legal or notary fees, title insurance and searches. These are typically the second-largest buyer cost after land transfer tax on a resale home. Ask for a quote that separates professional fees from disbursements (searches, registration fees, courier) and title insurance.
GST/HST on a new home. Resale homes are normally exempt. New homes are taxable, but first-time buyers may now recover up to $50,000 of GST through the First-Time Home Buyers' GST Rebate, enacted in March 2026. See GST/HST on new homes and the first-time buyer rebate.
Other cash at closing. Home inspection, appraisal (if the lender requires one and does not pay), condo status certificate in Ontario, provincial sales tax on a mortgage default insurance premium in Ontario, Quebec and Saskatchewan (this tax cannot be added to the mortgage), adjustments for property tax already paid by the seller, and moving costs.
Illustrative totals for a $900,000 sale in Ontario outside Toronto
| Side | Item | Illustrative amount |
|---|---|---|
| Seller | Commission at 4% | $36,000 |
| Seller | HST at 13% on commission | $4,680 |
| Seller | Legal fees and disbursements | $1,500 |
| Seller | Mortgage discharge fee | $300 |
| Buyer | Ontario land transfer tax: $4,475 + 2% x $500,000 | $14,475 |
| Buyer | Legal fees, disbursements, title insurance | $2,500 |
| Buyer | Inspection | $600 |
The seller's total in this example is $42,480, about 4.7% of the price; the buyer's is $17,575 before adjustments and moving. In Toronto, the buyer would add the same amount again in Municipal Land Transfer Tax ($14,475), almost doubling the land transfer bill. For full step-by-step versions, see the seller's net proceeds worked example and buyer closing costs in three cities.
Rules for non-Canadian buyers and owners
The federal ban on the purchase of residential property by non-Canadians has applied since 1 January 2023 and was extended to 1 January 2027. Ontario charges a 25% Non-Resident Speculation Tax, Toronto a 10% Municipal Non-Resident Speculation Tax since 2025, and BC an additional property transfer tax for foreign buyers in specified areas. The federal Underused Housing Tax still applies to the 2022 to 2024 years, while Budget 2025 proposed ending it from 2025. See foreign buyer ban and non-resident taxes and Underused Housing Tax status.
How to use the guides on this site
- Work out the commission in dollars with the commission calculator.
- Calculate land transfer tax with the land transfer tax calculator.
- Go through the closing costs checklist.
- Read the common mistakes before you sign anything.
Frequently asked questions
Does the seller pay land transfer tax in Canada?
No. Land transfer tax and Quebec transfer duties are the buyer's responsibility. The seller's main costs are commission, sales tax on it, legal fees and mortgage payout costs.
What percentage of the sale price do selling costs usually take?
There is no fixed figure because commission is negotiated. In the illustrative Ontario example above, the seller's costs were about 4.7% of the price, mostly commission and HST. A flat-fee listing or a private sale can cost far less, with trade-offs described in full service, flat fee or private sale.
Are closing costs added to the mortgage?
Generally no. Land transfer tax, legal fees and sales tax on mortgage insurance must usually be paid in cash. Lenders typically expect you to show you have funds for closing costs in addition to the down payment.
Is GST charged when I buy a resale home?
Normally not. Used residential housing is generally exempt from GST/HST. Services connected to the purchase, such as legal fees and commission, are taxable.
Sources
- Canada Revenue Agency — GST/HST on housing, rebates, principal residence and flipping rules
- Ontario Ministry of Finance — Ontario land transfer tax and Non-Resident Speculation Tax
- City of Toronto — Municipal Land Transfer Tax rates and rebates
- Government of British Columbia — property transfer tax and exemptions
- Revenu Québec — GST and QST in Quebec
- Competition Bureau Canada — competition in real estate services
