Last Updated on April 14, 2026
As of April 2026, real estate commissions in Ontario remain negotiable. A common full-service arrangement is still around 5% of the sale price, often split between the listing side and the buyer’s side, plus 13% HST in Ontario. While there is no fixed provincial commission rate, many Ontario transactions still fall within an overall range of roughly 3.5% to 5%, depending on the property, the market, and the level of service being provided.
COMMISSION TYPES
Real estate commissions are typically paid out as follows:
A particular percentage of the property’s agreed-upon sell price (i.e. – 3.5% to 5%, plus applicable HST)
A “flat-fee substitute,” otherwise known as a fixed fee, which remains the same, regardless of the price of the property in question.
In addition, there are instances where a flat fee is paid, along with additional fees for ancillary services provided by the real estate agent.
COMPARISON OF REAL ESTATE COMMISSION IN PROVINCES ACROSS CANADA, UPDATED APRIL 2026
| Province | Typical Real Estate Commission Rate | Average Sold Prices of Homes (February 2026) | Estimated Total commission Paid to Both Agents |
| Ontario | 5% of total price | $802,601 | $40,130 |
| British Columbia | 7% for 1st $100K and 2.5% for the remaining balance | $932,243 | $27,806 |
| Alberta | 7% for 1st $100K and 3% for the remaining balance | $521,364 | $19,641 |
| Quebec | 5% of the total price | $552,983 | $27,649 |
| Saskatchewan | 6% for 1st $100K, 4% for the 2nd $100K, and 2% for the remaining balance | $334,166 | $12,683 |
| Manitoba | 5% of the total price | $384,367 | $19,218 |
| Nova Scotia | $1,500 flat fee for properties under $25,000, and 5% of the total price for other properties | $467,926 | $23,396 |
| New Brunswick | 5% of the total price | $352,045 | $17,602 |
| Prince Edward Island | 5% of the total price | $422,667 | $21,133 |
| Newfoundland and Labrador | 5% of the total price | $332,983 | $16,649 |
Updated on 14/04/2026
WHAT TO KNOW
In Ontario, real estate commission rates aren’t actually regulated, meaning that they are negotiable between the seller and the real estate agent, or brokerage. However, that doesn’t mean sellers can simply lowball their agents in order to maximize their profits.
Commission rates are tied directly to the performance of the agent in question. To start off, it’s important to remember that the total commission rate is typically split between the listing agent, and the buyer’s agent, which signifies the complex relationship between the two.
As of April 2026, the typical real estate commission structure in Ontario is still commonly around 3.5% to 5% of the final sale price of a home, plus HST, although commissions are fully negotiable and can vary by brokerage, service model, local competition, and property type. A 5% total commission remains a common reference point, but it is not a mandated standard.
These commission rates can fluctuate slightly, depending on several factors, such as the location and type of property, as well as the level of service provided by the agent, or brokerage. To put things into perspective, a luxury property, or one located in a highly competitive market may command a higher commission rate due to the increased level of expertise and resources required to sell the property.
It is also worth noting that the latest available Ontario-wide average sold price was $802,601 in February 2026, which means a 5% commission example now works out to roughly $40,130 before HST.
KEY TIPS TO UNDERSTAND COMMISSION RATES
To maximize your understanding of real estate commission rates as they pertain to the province of Ontario, we’ve prepared the following list of key tips and points to provide further information.
1) Commission Structure
The total commission on a real estate sale is still often discussed using a 5% benchmark, but in practice it can vary meaningfully depending on the listing agreement, the agent’s service level, and whether the seller is using a traditional, discounted, or flat-fee model. In fact, it’s quite common for the listing agent and buyer’s agent to split the commission, with each receiving a percentage. Regardless, 5% is a baseline figure through which many brokerages in Ontario operate under, and a good starting point for possible negotiations with the seller.
2) Listing Agreement
Sellers will have to sign a listing agreement with their chosen real estate agent, which in turn outlines the terms of the arrangement, including the agreed-upon commission percentage. This is to establish all the criteria of a real estate sale beforehand, so that both parties understand and avoid any confusion or miscommunication. Under Ontario’s current TRESA framework, the remuneration terms should be clearly laid out in the representation agreement so the client understands what they will pay, what services they will receive, and how the arrangement works.
3) Cooperating Brokerage Commission
The listing side may still offer a portion of the overall commission to the buyer’s brokerage, but Ontario agents must not steer clients toward properties based on higher offered compensation. RECO has stated clearly that steering based on commission is a breach of TRESA.
4) Buyer’s Agreement
Buyers may sign an agreement with their agent which outlines the terms of their respective relationship, including any commission fees the former may be responsible for. Buyers may sign a representation agreement that sets out how their brokerage will be paid. In some cases, the seller may still cover that amount through a remuneration clause in the agreement of purchase and sale, but the fee arrangement should first be clearly established between the buyer and their brokerage.
5) Payment at Closing
Commission fees are typically paid at the closing date of the sale, and funds are usually deducted from the seller’s proceeds before they receive their final payment. However, this is not etched in stone, and the commission payment due dates may vary, depending on the deal. Many real estate agents and brokerages help offset this uncertainty by opting for commission advances, which guarantee their money before the seller has made a payment.
6) HST Charges
Always note that commission fees are subject to HST, so it is important to clarify whether the quoted commission includes HST or whether it will be added on top. HST remains 13% in Ontario. Nova Scotia’s HST was reduced to 14% effective April 1, 2025, and remains at that rate as of April 2026.
NEGOTIATIONS
Negotiating commission rates is largely a matter of balancing out the value of services provided by the agent or brokerage, along with the property in question. A lower commission rate may seem appealing to a seller looking for the highest payout, but it often comes at the expense of a qualified and seasoned agent or brokerage with the necessary experience, resources, and networking capabilities to effectively market and sell the property.
In 2026, this matters even more because softer pricing in Ontario and more balanced inventory conditions mean sellers are often more cost-conscious than they were during tighter market periods, while still expecting strong marketing, negotiation, and transaction management from their agent.
There is some flexibility, however. Certain agents and brokerages may offer alternative commission structures, including flat-fee or performance-based commission models which are more attractive to sellers looking for some reassurance and predictability when it comes to the final selling price.
At the same time, lower fees do not automatically mean lower value, and higher fees do not automatically guarantee better representation. Sellers and agents should focus on what is actually included, such as pricing strategy, staging guidance, marketing exposure, offer management, and negotiation support.
Since commission fees are paid out by the seller of a property, this only stands to reason. Similarly, there are instances where the buyer’s fee may not be paid by the seller, such as when a home is put up for sale independent of an agent.
CONCLUSION
Real estate commission rates in Ontario remain negotiable as of April 2026, but agents and consumers should base expectations on current market realities, clear representation agreements, and a full understanding of what services are being provided. With Ontario’s average sold home price sitting at $802,601 in the latest available February 2026 data, even small changes in commission structure can have a meaningful impact on the final dollars involved. It will also allow you as a real estate agent or brokerage to effectively budget and plan your strategy, so you can sell a home faster, and receive your commission.
As always, Rocket Advance is on standby to assist with that last part. We realize that sometimes it takes a while for commission payments to arrive, and if you’re just starting out as an agent, we know how tough this can be. Even experienced agents may want to receive their commission payouts quicker than usual, and our process makes this easy.
Contact us today, so you can worry less about your incoming commissions, and more on closing the next deal!
