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Ontario has no standard real estate commission. RECO says the fee isn’t set by the government, the regulator or any real estate board; it’s whatever you agree to in writing. The federal consumer agency says commissions in Canada typically range from 2% to 6% depending on location, and they’re negotiable.
Is there a standard commission rate in Ontario?
No. You’ll hear figures like “5%” quoted as if they were the rule, but no law sets them. RECO’s information guide says no regulator, government body, board or real estate association sets or signs off on what a seller pays a brokerage. It’s negotiated between you and the brokerage and written into your agreement.
For a reference range, the Financial Consumer Agency of Canada (FCAC) says realtor commissions may be negotiable but typically range from 2% to 6%, depending on your location. That’s a national figure, not an Ontario survey, so treat it as a broad band rather than a local average.
How can commission be charged?
Section 36 of TRESA, Ontario’s real estate services law, quoted in RECO’s notice on commission steering, allows:
- a set dollar figure,
- a percentage of the selling price,
- a series of percentages that drop as the price rises, or
- a mix of these.
What’s banned is a fee based on the gap between the asking price and the selling price. An agent can’t take “everything over $900,000”, for example.
What does a percentage commission cost in dollars?
Simple math shows why the rate matters. These figures use the ends and middle of FCAC’s 2% to 6% range and are before HST (Ontario’s rate is 13%).
| Sale price | At 2% | At 4% | At 6% |
|---|---|---|---|
| $500,000 | $10,000 | $20,000 | $30,000 |
| $750,000 | $15,000 | $30,000 | $45,000 |
| $1,000,000 | $20,000 | $40,000 | $60,000 |
For comparison, our flat-fee MLS® packages cost $74.99 a month (cancel anytime) or $98.99 to $197.93 for 2 to 12 months, plus HST, with no commission to the listing brokerage. Pricing starts as low as $16.49 a month with our 12-month plan ($197.93 for 12 months, plus HST). The full list is on our pricing page.
Is the seller still paying the buyer’s agent in 2026?
This is where the most has changed. Under TRESA’s current rules, in force since December 1, 2023, a buyer’s representation agreement must clearly set out how the buyer’s brokerage fee is worked out. RECO’s TRESA FAQs explain that a seller can agree to cover some or all of that fee, but it’s a negotiated term, not an automatic one. If the seller has no full-service agent, it usually goes into a remuneration clause in the agreement of purchase and sale, as described in RECO Bulletin 6.2.
There’s one MLS®-specific wrinkle. CREA’s rules say the listing REALTOR® must offer compensation to the buyer’s brokerage on every MLS® listing, and an offer of zero isn’t allowed. CREA confirmed in October 2025 that this rule still applies. Meanwhile, the federal Competition Bureau is investigating CREA’s commission rules. Watch for changes, and ask any listing service exactly what cooperating amount will appear on your listing and who pays it. On our listings, you can set the buyer agent’s cooperating commission at any amount you like, and many sellers offer 2% to 2.5%.
Buyers’ agents also aren’t allowed to steer clients away from homes offering less. RECO says steering by commission breaches TRESA, with fines up to $50,000 for individuals and $100,000 for brokerages (RECO).
What should you check before signing a listing agreement?
- The exact fee: percentage, flat amount or both, and whether HST is included.
- What, if anything, you’re offering the buyer’s brokerage, and whether it’s included in the fee or extra.
- The term, and any holdover clause. RECO’s guide explains how holdovers can leave you owing commission after the listing ends.
- Which services are included. RECO notes there’s no standard package, so get the list in writing.
- Cancellation terms and fees.
What are the lower-cost alternatives?
| Option | What you pay the listing side | Who does the work |
|---|---|---|
| Full-service brokerage | Negotiated %, flat fee or mix | Agent markets, shows and negotiates |
| Reduced-commission or hybrid brokerage | Lower % or set fee, fewer services | Shared |
| Flat-fee MLS® (mere posting) | One flat fee | You, with your lawyer |
| Private sale without MLS® | Nothing to a brokerage | You, with your lawyer |
To learn more about the flat-fee route, read what a mere posting is and whether flat-fee MLS® is worth it, or see how ListedBySeller.ca compares with other Ontario flat-fee services.
Frequently asked questions
Is real estate commission negotiable in Ontario?
Yes. RECO says no government body, regulator or board sets the amount, and the federal consumer agency calls commissions negotiable. You can also ask for a flat dollar fee instead of a percentage.
Who pays the buyer’s agent in Ontario?
The buyer’s agent is paid under the buyer’s own representation agreement. A seller can agree to cover some or all of it, through the listing agreement or a remuneration clause in the agreement of purchase and sale, but that’s a choice made in writing.
Is HST charged on real estate commission?
Real estate brokerage services are a taxable service, and Ontario’s HST rate is 13%. Ask whether any quote you get is before or after HST so you can compare like with like.
Can commission be based on how much over asking I get?
No. TRESA section 36 bans fees calculated on the difference between the list price and the sale price. A fixed amount, a percentage, a sliding scale of percentages, or a mix is allowed.
What is a holdover clause?
A term in many listing agreements that can make you owe commission if you sell, within a set period after the listing ends, to a buyer who was introduced during the listing. RECO’s guide explains how it works. Check the length before you sign.
How can I avoid paying a percentage commission?
One option is a flat-fee MLS® listing (mere posting), where you pay a set fee to be listed and handle the sale yourself. You decide separately what, if anything, to offer a buyer’s brokerage.
Sources
All sources below were checked on October 23, 2026. Rules and rates change, so confirm anything important with the source or a professional.
- RECO Information Guide (Real Estate Council of Ontario)
- Financial Consumer Agency of Canada: Selling a home
- RECO: Concerns about steering based on commission (revised May 2025)
- RECO: TRESA FAQs
- RECO Bulletin 6.2: Remuneration clause in an agreement of purchase and sale
- CREA By-Laws and Rules (approved April 2025), Rule 11.2
- CREA statement, October 15, 2025
- Competition Bureau Canada: call-out for information on CREA’s commission rules and Cooperation Policy
- Canada Revenue Agency: GST/HST rates
