Realtor Commission in Ontario in 2027: How Much and Who Pays

By Jatin Dua · Broker of Record, RE/MAX Quantum Realty · Updated 2 November 2026 · 10 min read — Ontario has no set realtor commission. See what different fees cost on real GTA prices in 2027, who pays each side, and which terms to negotiate.

This guide is for Ontario homeowners who plan to sell in 2027 and want to know what a realtor will cost before they sign anything. You will get the actual rules on commission, what different fees work out to on real GTA prices, who pays which part, and the questions that protect you at the listing table.

How much is realtor commission in Ontario in 2027?

There is no set rate. The Real Estate Council of Ontario (RECO), the provincial regulator, says the amount you pay is decided between you and the brokerage and is not fixed or approved by RECO, any government or any real estate board. That rule does not change in 2027.

The law that governs agents, the Trust in Real Estate Services Act, 2002 (TRESA), sets the shape of the fee rather than the size. Under section 36, a brokerage’s pay must be:

• A dollar amount (a flat fee), a percentage of the sale price, or a mix of both.
• If it is a percentage, it can be a series of rates, but only rates that go down as the price goes up. A rate that climbs with the price is not one of the allowed structures.
• It can never be based on the gap between the list price and the sale price. An agent cannot ask for “everything over $900,000”, for example.

Commission is a taxable service, so 13% HST is added on top of whatever you agree to. The Canada Revenue Agency lists Ontario’s HST rate at 13%.

You will notice I do not quote a “standard” percentage. No official source publishes one, because there isn’t one. Any agent who tells you a number is “what everyone charges” is giving you their own number. For the older background on this, see my earlier guide to real estate commission in Ontario.

What does realtor commission cost on a GTA home?

Because the fee is negotiated, the useful thing is to see what different agreements cost in dollars. The prices below are real late-2026 figures from TRREB: the City of Toronto median condo apartment and detached house in October 2026, and the GTA-wide average sale price for the same month.

Source: prices from TRREB Market Watch, October 2026 (City of Toronto medians and GTA average); totals include 13% HST (CRA). Fee levels are examples to show the maths, not typical or recommended rates.

Two things jump out. First, on an expensive house each percentage point is worth more than $12,000 once HST is added, so the structure matters as much as the rate. Second, a flat fee or a tiered rate behaves very differently from a straight percentage as the price rises. Ask any agent you interview to show you their fee in dollars at your likely price, not only as a percentage.

Who pays realtor commission in Ontario?

In a typical resale, the seller pays their own brokerage under the listing agreement. RECO says the seller’s agreement must spell out three things: what the seller pays their brokerage, what amount (if any) the seller agrees to pay toward the buyer’s brokerage fee, and how those amounts change if the seller agrees to multiple representation (one brokerage or agent acting for both sides).

The buyer signs their own agreement with their brokerage. That agreement must say what the buyer owes and how the amount changes if the seller covers some or all of it. RECO warns buyers that a seller might not offer anything toward the buyer’s brokerage, in which case the buyer may owe the fee directly.

So the honest answer is that each side owes its own brokerage, and sellers often choose to cover some or all of the buyer’s side to attract more buyers. I go through the buyer side in detail in who pays realtor fees in Ontario.

Is realtor commission negotiable in Ontario?

Yes, every part of it. RECO’s own advice is to interview at least three agents and compare their services and fees, and to read the contract before you sign, with a lawyer if you are unsure. When you negotiate, look past the headline number at five terms that move real dollars:

1. The amount for your brokerage, and whether it is flat, a percentage, or tiered.
2. The amount offered to a buyer’s brokerage. Offering less saves money if it works, but it can shrink your pool of buyers, because some buyers would then owe their own agent.
3. What happens under multiple representation. Many agreements change the fee if the same brokerage finds the buyer. RECO requires this to be written in.
4. The holdover period. This clause can make you owe commission after the agreement ends if you sell to someone introduced during the listing. RECO says there is no minimum or set length, so agree to the length before you sign. My guide to the holdover clause explains the traps.
5. The services. RECO says there is no standard set of services, and you should not assume anything that is not written in the agreement or a schedule to it.

How has the 2026 market changed what you pay for?

Commission pays for the work it takes to sell, and that work has grown. Across the GTA, homes have taken longer to sell than two years ago, while prices have come down. Here is how the median sale price and average days on market moved for some of the busiest segments:

Source: TRREB MLS data via REALM, January to October 2026 vs the same period of 2024. Median sold prices and average days on market; municipality and TRREB district level (C01 = downtown Toronto district).

TRREB’s October 2026 report tells the same story for the whole region: 5,603 sales, down 7.9% from October 2025, and an average price of $1,024,108, down 2.7%. In the City of Toronto, condo apartments sold for 97% of their asking price on average that month, with 36 average days on market. Buyers have room to negotiate, which means pricing, preparation and marketing matter more than they did in 2021 or early 2022.

What this means for you: a percentage fee pays the agent less on a lower price, while the work goes up. A flat fee pays the same no matter what. Neither is automatically better. What you want is a fee that matches a clear, written list of services, and an agent who can show you a plan for a slower market. Before you pick, read what you lose with a flat-fee listing.

When is commission paid, and do you pay if the home does not sell?

Commission is normally earned and paid on a completed sale, on the terms written in your listing agreement. In a typical resale, the seller’s lawyer pays the brokerage out of the sale proceeds on closing day, and the deposit held in trust by the listing brokerage may be applied toward it. Check your agreement for exactly when the fee is earned.

If the home does not sell, whether you owe anything depends on the agreement. RECO says an agreement should list every situation in which it can be ended, and any penalties or costs that apply in each case. Read that section before you sign, not when you want out. If you are already in an agreement that is not working, my guide on cancelling a listing agreement in Ontario walks through your options.

One more rule protects you from paying twice: under TRESA section 33, a brokerage cannot claim a fee from a seller whose property it knows is under an unexpired listing with another brokerage, unless the seller agrees in writing.

What should you ask before you sign a listing agreement?

These questions take ten minutes and can save thousands:

• What is your total fee in dollars at my likely sale price, including HST?
• How much of that goes to a buyer’s brokerage, and why that amount?
• Does the fee change if your brokerage also represents the buyer?
• Exactly which services are included? Photos, floor plans, staging advice, open houses, paid advertising, and how you handle offers. Put them in a schedule.
• How long is the agreement, and how long is the holdover period?
• Can I end the agreement early, and what would it cost me?
• Are you registered with RECO? (You can check any agent on RECO’s public register.)

For the full list of seller costs that sit next to commission, such as legal fees and mortgage penalties, see seller closing costs in Ontario for 2027.

What to do next

1. Get a realistic price range for your home so you can turn every fee quote into dollars.
2. Interview at least three agents, as RECO suggests, and ask each for their fee in dollars at that price, including HST.
3. Ask for the list of services, the holdover period and the cancellation terms in writing before you sign.
4. Have a real estate lawyer review the listing agreement if any clause is unclear.
5. Check each agent on RECO’s public register before you commit.

Frequently asked questions

Sources

• RECO: Signing a contract with a real estate brokerage
• Trust in Real Estate Services Act, 2002 (e-Laws), ss. 33 and 36
• RECO: How do I choose a real estate agent as a seller?
• RECO: Understanding multiple representation
• RECO: Seller’s checklist
• Canada Revenue Agency: GST/HST calculator and rates
• TRREB Market Watch, October 2026

Related reading

• Seller Closing Costs in Ontario for 2027: Every Fee Before You Get Paid
• How to Sell a House in Toronto, Step by Step (2027)
• Closing Costs on a New Build in Ontario: What Builders Add
• How Much Is My House Worth in Caledon? (2027)