Realtor Commission Fees in the GTA Explained
In Toronto and the Greater Toronto Area (GTA), real estate commission is not fixed — it’s negotiable between the seller and the listing brokerage.
However, the typical total commission for selling a home in Toronto is around 4% to 5% of the final sale price, which is usually split between the listing agent and the buyer’s agent (commonly 2.5% each).
For example:
If a home sells for $800,000, a 5% commission would equal $40,000 plus HST.
This amount is usually divided 50/50 between the two agents’ brokerages.
Some Realtors in Toronto offer discounted or flexible commission options, such as:
Lower listing fees (e.g., 1.25% to 1.5%)
Flat-fee packages
Limited-service listings
The real estate commission in Ontario is paid by the seller upon closing and covers the agent’s services, such as marketing, showings, negotiations, and handling all paperwork.
When comparing commissions, it’s important to also compare the marketing plan, exposure, and service level you receive — because the right Realtor can help you sell faster and for a higher price, often offsetting any fee difference.
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FAQ
How much is the average real estate commission in Toronto and the Greater Toronto Area (GTA)?
Real estate commissions in Toronto and the GTA typically range between 4% and 5% of the final sale price, plus HST. This amount is usually split between the listing agent and the buyer’s agent, though the exact structure can vary by brokerage and agreement.
Who pays the real estate commission in Toronto - buyer or seller?
In most Toronto and GTA transactions, the seller pays the full commission from the proceeds of the sale. The commission is then divided between the listing brokerage and the buyer’s brokerage. Buyers generally do not pay commission directly.
Are real estate commissions negotiable in Toronto and the GTA?
Yes. Real estate commissions are fully negotiable in Ontario. Sellers can discuss commission rates, services included, and marketing costs with their Realtor before signing a listing agreement.
What services are included in a typical real estate commission?
A standard commission usually covers:
Professional pricing strategy
MLS® listing exposure
Marketing (photos, videos, ads, staging advice)
Showings and open houses
Negotiation and offer management
Transaction coordination until closing
The level of service can vary depending on the commission structure.
Do discount or flat-fee Realtors offer the same service?
Not always. Some discount or flat-fee models offer limited services, such as MLS® listing only, while others provide full service at a reduced rate. It’s important to compare value, marketing reach, and experience, not just commission percentage.
How does commission work when buying a home in the GTA?
When buying a home in Toronto or the GTA, the seller typically pays the buyer’s agent commission. This means buyers usually receive professional representation, negotiation, and guidance at no direct cost.
Is HST included in real estate commissions in Toronto?
No. HST (13%) is added on top of the agreed commission and is paid by the seller at closing. This is an important cost to factor in when calculating net proceeds.
Does paying a higher commission guarantee a higher sale price?
A higher commission does not automatically mean a higher sale price. What matters most is pricing strategy, marketing exposure, negotiation skills, and local market expertise in Toronto and the GTA.