Home Sale Net
Proceeds Calculator
Work out what you actually walk away with after commission, HST, legal fees and your mortgage payout. No email required — the number is right there.
| Sale price | $0 |
| Real estate commission | −$0 |
| HST on commission (13%) | −$0 |
| Legal fees | −$0 |
| Mortgage payout | −$0 |
| Prepayment penalty | −$0 |
| Other costs | −$0 |
| Net proceeds | $0 |
What actually comes out of your sale
| Cost | Typical range | Notes |
|---|---|---|
| Real estate commission | 3.5%–5% combined | Listing side commonly 1%–2.5%, buyer side around 2.5%. Always negotiable. |
| HST on commission | 13% of commission | Not optional, and routinely forgotten. |
| Legal fees | $1,000–$1,600 | Slightly higher for a condo. Get a written quote. |
| Mortgage discharge fee | $250–$400 | Small, but real. Varies by lender and province. |
| Prepayment penalty | $0 to five figures | Variable: usually 3 months’ interest. Fixed: greater of 3 months’ interest or the IRD — which can be very large. |
| Staging & prep | $0–$5,000+ | Optional. Often worth it on a slow condo; often not on a strong detached listing. |
| Status certificate (condos) | Up to $100 incl. tax | Capped by law and must be provided within 10 days of request. |
| Land transfer tax | $0 — buyer pays | Sellers search this constantly, but it is a buyer cost in Ontario and Toronto. |
The prepayment penalty is where sellers get hurt
If you are breaking a fixed-rate mortgage mid-term, the penalty is the greater of three months’ interest or the interest rate differential. The IRD calculation varies enormously between lenders and can run well into five figures. It is the single most common reason a seller’s net sheet comes in far below what they expected.
Call your lender and ask for an exact payout quote before you list. Not an estimate — an actual quote with a date on it. It takes one phone call and it can change your entire decision.
Capital gains — usually not, but check
If the property was your principal residence for every year you owned it, the principal residence exemption generally means no capital gains tax — though you must still report the sale on your T1 return. If it was a rental, an investment property or a second home, capital gains will generally apply.
Also be aware of the property flipping rule: sell a residential property you owned for under 365 consecutive days and the profit is generally treated as fully taxable business income, with no principal residence exemption. There are exceptions for genuine life events. This is accountant territory, not agent territory — and I will tell you to go get one.
Want an exact number for your property?
The calculator gets you in the right range. A proper seller net sheet accounts for your actual mortgage terms, your lawyer’s quote, and what your specific property is realistically likely to sell for.
- A realistic sale price based on sold comparables, not an algorithm
- Your actual commission structure, in writing
- What to budget for prep, and honestly what to skip
- If you have a tenant: tenanted vs vacant, priced both ways
- No obligation, and no cost
Selling costs — common questions
How much does it cost to sell a house in Ontario?
Typically 5% to 6% of the sale price all in. The largest component is real estate commission (commonly 3.5% to 5% combined, plus 13% HST on that commission), followed by legal fees of roughly $1,000 to $1,600, and any mortgage discharge or prepayment penalty. On a $900,000 sale, total costs commonly land between $45,000 and $54,000.
Do I pay HST on real estate commission in Ontario?
Yes. HST at 13% applies to the commission, and it is the cost sellers most often forget. On a $900,000 sale at 5% commission, the commission is $45,000 and the HST on it is a further $5,850 — so $50,850 in total, not $45,000.
What are lawyer fees for selling a house in Ontario?
Generally $1,000 to $1,600 including disbursements for a straightforward sale. A condo sale can run slightly higher because of the status certificate and additional condo corporation requirements. Get a written quote before you list — most lawyers will give one on request.
What is a mortgage prepayment penalty and how much is it?
A charge for breaking your mortgage before the end of its term. On a variable-rate mortgage it is usually three months’ interest. On a fixed-rate mortgage it is the greater of three months’ interest or the interest rate differential (IRD), and the IRD can be very large — five figures is not unusual. This is the single most common nasty surprise in a seller’s net sheet. Call your lender and ask for an exact payout quote before you list.
Do I pay capital gains tax when I sell my home in Ontario?
If the property was your principal residence for every year you owned it, the principal residence exemption generally means no capital gains tax. However, you must still report the sale on your T1 return. If it was a rental or investment property, or a second property, capital gains tax will generally apply. This is a question for an accountant, not a real estate agent.
What is the property flipping rule in Canada?
If you sell a residential property you owned for less than 365 consecutive days, the profit is generally treated as fully taxable business income rather than a capital gain, and the principal residence exemption does not apply. There are exceptions for genuine life events such as death, disability, separation, a new job or the birth of a child. Speak to an accountant if this might apply to you.
Can I negotiate real estate commission in Toronto?
Yes — commission is always negotiable and there is no fixed rate in Ontario. What matters more than the headline number is what the split is between the listing side and the buyer’s side, and what marketing is actually included. Cutting the buyer-agent portion to save money can quietly reduce how often your property gets shown.
Does the seller pay land transfer tax in Ontario?
No. Land transfer tax — both the Ontario tax and Toronto’s additional municipal land transfer tax — is paid by the buyer. Sellers search this constantly because they are usually buying next, in which case it becomes a very real cost on the purchase side.
How accurate is this net proceeds calculator?
It is a good planning estimate, and considerably more honest than the “home evaluation” forms that show you nothing. But it cannot know your exact mortgage penalty, your specific legal quote, or any adjustments on closing. Use it to get in the right range, then get exact figures from your lender and lawyer before you make a decision.
Who can give me an exact net proceeds figure?
I can prepare a proper seller net sheet for your specific property — I’m Jatin Dua, a Realtor with RE/MAX Quantum Realty working across Etobicoke and Toronto. It costs nothing and there is no obligation to list. Call 437-987-1925 or email connect@jatindua.com.