Last Updated on June 05, 2025
Commissions are the lifeblood of the real estate industry, and both brokers and agents work hard to earn them on each and every property that is sold and purchased. Typically, commission rates in the Toronto area tend to hold stable, with minor fluctuations in the percentage amount that are dependent on a number of different factors.
These can include location, market conditions, the state of the overall economy, and individual agreements between real estate agents and their clientele. Other factors may include regulatory changes, competition, and shifting market dynamics. To understand real estate commissions as they pertain to 2025, we’ve put together this article with all the knowledge you’ll need. Let’s dive right in.
WHAT IS THE AVERAGE REAL ESTATE COMMISSION RATE?
Typically, real estate commission rates tend to waver somewhere between 5% and 6%, and location plays a rather large role in determining where exactly the needle stops. In 2025, commission rates tend to hover just under 6% of the value of the sold property. This is largely a baseline, and does not necessarily take into account the fluctuating criteria previously mentioned.
HOW COMMISSION RATES VARY ACROSS CANADIAN PROVINCES
While the general concept of real estate commission remains consistent—agents are paid a percentage of the home’s sale price, the actual rates and structures can differ significantly depending on the province. Local market dynamics, urban versus rural demand, and brokerage competition all influence how much commission sellers and buyers can expect to pay.
Figure: Breakdown of typical commission models across major Canadian provinces.
Commission Notes by Province:
| Province | Typical Commission Structure | Notes |
|---|---|---|
| Ontario | 5% total (2.5% buyer / 2.5% seller) | Negotiable; lower rates possible in competitive areas like Toronto |
| British Columbia | 7% on first $100,000 + 2.5% on remaining balance | Tiered model; negotiable, especially in urban markets like Vancouver |
| Alberta | 7% on first $100,000 + 3% on remaining balance | Higher total commission; flat-fee options in Edmonton and Calgary |
| Manitoba | 5% total (commonly split buyer/seller) | Negotiable; varies by property value and client relationship |
| Nova Scotia | 5% total (split between agents) | Urban vs rural variation; flat-fee and flexible packages available |
| Quebec | 4–5% total (shared equally) | Commission alternatives common; cost-conscious market with hybrid models |
ONTARIO
Ontario typically follows a commission structure of 5% of the home’s sale price, split equally between the buyer’s and seller’s agents (2.5% each). This is consistent with what’s noted in our Ontario commission guide.
However, commissions are not regulated by the government, meaning agents can negotiate lower or higher fees depending on the services provided, local market conditions, and client preferences. In competitive urban areas like Toronto, you may occasionally see discounted rates around 4% total or flat fee brokerage services
BRITISH COLUMBIA
In BC, the most common commission model is a tiered system:
- 7% on the first $100,000 of the sale price
- 2.5% on the remaining balance
This rate is generally split between the listing agent and the buyer’s agent. For example, on a $500,000 home, the total commission would be approximately $17,000, which is shared by both agents (and potentially their brokerages).
Commissions are still negotiable, especially in high demand areas like Vancouver, where some agents may offer customized structures or bundled marketing services.
Figure: Tiered Real Estate Commission Structures in BC and Alberta.
ALBERTA
In Alberta, commission rates are generally 7% on the first $100,000, and 3% on the remaining balance of the sale price. This structure results in a higher commission total compared to other provinces for mid to high value homes.
For instance, selling a home at $400,000 would typically result in a $16,000 commission. This is then split between the buyer’s and seller’s agents, often with a 50/50 split.
Flat rate commission options also exist in cities like Edmonton and Calgary, providing sellers with alternative pricing structures.
MANITOBA
Manitoba agents often charge around 5% of the final sale price, similar to Ontario. This is typically split evenly between the listing and buyer’s agents.
While 5% is common, it’s not fixed. Some brokerages in Winnipeg and surrounding areas offer lower negotiated rates, especially for higher priced properties or for repeat clients.
Additionally, commission structures might include enhanced marketing fees or flexible service packages, depending on the brokerage.
NOVA SCOTIA
Nova Scotia generally follows a 5% commission rate, divided between the buyer’s and seller’s agents. Like other provinces, this amount is flexible and subject to negotiation.
In rural or less competitive markets, agents may offer reduced rates or flat fee options. Conversely, in urban areas like Halifax, full service listings with higher commissions are more common, especially when marketing and staging are included.
Some realtors in Nova Scotia also adjust rates based on the level of involvement the client requires.
QUEBEC
Quebec typically sees commission rates between 4% and 5%, with 5% being the most common in cities like Montreal. This fee is shared equally between the listing and buying agents.
However, Quebec has a unique real estate market, and many agents, especially those affiliated with DuProprio or hybrid services, offer commission alternatives, such as fixed marketing fees or partial service options.
Consumers in Quebec are highly cost conscious, and the rise of private sale platforms has made commission negotiation even more common.
HOW MUCH DO AGENTS GET TO KEEP?
Contrary to what many customers think, real estate agents don’t get to keep the entirety of a commission fee. When a property is sold, the seller pays out the commission to the listing agent, who in turn siphons off a portion to cover the costs associated with marketing and advertising the property. These can include necessary things like professional photography and video, showings, and other forms of marketing.
Next, the commission is typically split in half with the buyer’s agent as a means to compensate both. After all, there can be no commission without a sale, and it takes two to make it happen. Once the split is finalized, both listing and buyer agents must pay a portion to the respective broker. The exact amount paid out to the broker is not etched in stone, however, and depends on several factors, including the original agreement.
HOW FLEXIBLE ARE COMMISSION RATES?
There is a small amount of play when it comes to real estate commission rates, but this depends heavily on the willingness of real estate agents to go along with such a proposal. Negotiation of commission rates means agents may lose the ability to try and push for a higher sale price of a property. Similarly, lower commission rates mean less profit, especially after marketing and ancillary costs have been taken into account.
One of the reasons clients choose not to negotiate on commission rates is due to the smaller number of agents willing to represent them. It’s far easier to agree on a baseline standard, as sellers wish to sell their properties as fast as possible, while buyers may want to sign on the dotted line before a competing client beats them to it. In the end, it’s better to keep commission rates as they are, so clients can benefit from the widest possible pool of talented agents willing to work with them.
IF A PROPERTY DOES NOT SELL
The inevitable question on the minds of new real estate agents is whether they will receive their commission in the event that the property in question does not sell. The short answer is “no,” but there are certain exemptions. Typically, real estate agents enjoy an exclusive right to sell a property, meaning no other agent can swoop in and take the opportunity. In exchange, the real estate agent must agree to sell a property before an agreed-upon date, lest the commission fee be waived.
However, certain contractual clauses may give the seller more opportunity to collect a commission fee, such as if a buyer purchases the property after the deadline has passed. These are known as brokerage protection clauses, or a “safety clause.”
CONCLUSION
Whatever the situation, you as a real estate agent are determined to earn your commission, which is the driving force beyond all your hard work. However, there may be times when you require that commission fee sooner than the scheduled date. If you have closed on a deal, you can receive your commission faster by contacting us.
Rocket Advance will deliver your commission payment to you so that you can put it towards anything you would like. It’s a great solution for agents who are just starting out, and need to receive their commissions fast in order to build new clientele and work towards the closing of new deals. Contact us today for more information!
