• Real Estate Commission

Commission is typically the largest cost for sellers. In Canada, commissions generally range from 3.5% to 5% of the sale price, paid entirely by the seller and split between the listing brokerage and the cooperating (buyer's) brokerage. On a $700,000 sale at 4% commission, that is $28,000 — deducted directly from the sale proceeds at closing. Commission is negotiable, though reducing it involves trade-offs discussed in more detail in the guide on choosing an agent. The point here is simply to build the full commission into your net proceeds calculation before you become emotionally attached to any particular sale price.

• Legal Fees

Sellers require a real estate lawyer to handle the discharge of the mortgage from title, review the statement of adjustments, receive and distribute funds at closing, and coordinate with the buyer's lawyer. Legal fees for sellers in Canada typically range from $1,000 to $2,500, depending on the complexity of the transaction, the province, and the law firm. Disbursements — registration fees, title search costs, bank wire charges — are charged on top of the base fee and typically add $200 to $500. If you are purchasing another property simultaneously, you may be able to negotiate a combined fee for both transactions with the same lawyer.

• Mortgage Discharge Fee and Prepayment Penalty

If you have a mortgage on the property, your lender charges a discharge fee to remove the mortgage from title when the property is sold. This administrative fee typically runs $200 to $400 and is separate from any prepayment penalty. If you are in a variable-rate mortgage, the prepayment penalty for breaking it is typically three months' interest — significant but usually manageable. If you are breaking a fixed-rate mortgage before its maturity date, however, the penalty is calculated as the greater of three months' interest or the interest rate differential (IRD), and the IRD calculation can produce penalties of $10,000 to $30,000 or more on a typical Canadian mortgage.

The IRD is calculated based on the difference between your contract rate and the lender's current rate for a term matching your remaining term, applied to the outstanding balance over the remaining months. Lenders calculate this differently, and the results can be surprising. Request a prepayment penalty quote from your lender before you commit to a closing date, so you know exactly what you owe. Some mortgages are portable — meaning you can transfer the mortgage to your next property — which avoids the penalty entirely if the timing and amount align.

• Property Tax Adjustments

Sellers pay property taxes up to and including the closing date. The statement of adjustments prepared by the lawyers will calculate a daily rate based on the annual property tax bill and credit or charge accordingly. If you have prepaid your property taxes for the year, you will receive a credit for the period after closing. If taxes are in arrears or only partially paid, you will owe the balance. This is usually a relatively modest adjustment, but it can be a pleasant or unpleasant surprise depending on your payment timing, so confirm your property tax status before closing.

• Capital Gains Tax

If the home you are selling is your principal residence and has been for every year you have owned it, the sale is entirely exempt from capital gains tax under Canada's principal residence exemption. You still need to report the sale on your tax return in the year it closes, but no tax is owed. If the property is an investment property, a cottage, or a second home, capital gains tax applies to 50% of the gain (the “inclusion rate” as of 2024) at your marginal income tax rate. For properties held through a corporation or in a trust, different rules apply. If there is any uncertainty about your principal residence status — for example, if you rented the property for a period or used a portion as a home office — consult a tax professional before closing.

• HST/GST on New Builds

If you are selling a newly constructed home or a substantially renovated home, HST or GST may apply to the sale. This is a significant consideration for builders and developers but can also catch individual sellers off guard if they have substantially renovated a property. The Canada Revenue Agency considers a home substantially renovated if 90% or more of the interior has been gutted and rebuilt. If HST applies and was not factored into the original purchase or build cost, it can represent a large unexpected liability. Confirm your HST status with a tax professional or real estate lawyer before listing a newly built or substantially renovated home.

• Condo-Specific Costs

If you are selling a condominium, the buyer's lender will require a status certificate — a document prepared by the condo corporation that discloses the financial health of the corporation, any pending special assessments, ongoing litigation, the reserve fund balance, and your unit's maintenance fee status. Sellers typically pay the cost of the status certificate, which ranges from $100 to $200 depending on the corporation, and order it proactively so it is ready when an offer comes in. Buyers have ten days to review and potentially rescind an agreement based on the status certificate, so having it ready in advance avoids delays. Any outstanding arrears on maintenance fees will be deducted from your closing proceeds.

• Moving Costs and Utility Adjustments

Moving costs vary significantly depending on distance, volume, whether you hire professionals, and availability of service in your market. A local move within the same city for a typical family home typically costs $1,500 to $3,500 for professional movers. Long-distance moves can cost $5,000 to $15,000 or more. Utility adjustments — for prepaid cable, internet, or natural gas — are generally refunded or cancelled directly with the provider and do not typically appear on the closing statement, but arranging these cancellations and transfers is the seller's responsibility in the weeks before closing.

• Full Summary of Seller Closing Costs

• Pressure-Testing Your Net Proceeds

Before you commit to a sale price as your financial target, build a full net proceeds calculation. Start with your expected sale price. Subtract commission, legal fees, mortgage discharge fee, any prepayment penalty, and estimated moving costs. Add or subtract property tax adjustments. What remains is your actual net — the equity you will have available to deploy after the sale. If you are purchasing another property, does this net figure give you the down payment you need, plus reserve for closing costs on the purchase? If the math is tight, knowing it before you list is far better than discovering it at the lawyer's office. Your agent and lawyer can both help you build this calculation.