Realtor Commission Calculator Ontario

How Realtor Commissions Work in Ontario

In Ontario, real estate commissions are typically paid to the selling agent by the buyer's brokerage. The commission rate varies based on the property type and price, but generally ranges from 2.5% to 3% of the sale price.

Key Components of Realtor Commissions

• Selling Agent Commission: Paid to the agent who listed and marketed the property
• Buyer's Agent Commission: Paid to the agent who helped the buyer find the property
• Dual Agency: When both agents work for the same brokerage
• Transaction Fee: Additional fee paid to the brokerage for administrative services

Commission Splits

The standard split in Ontario is 50/50 between the selling agent and buyer's agent. However, some transactions may have different splits based on negotiation.

Commission Formula

The basic formula for calculating realtor commission in Ontario is:

Where:

• Sale Price - The total price of the property being sold
• Commission Rate - The percentage agreed upon between the brokerage and the agent (typically 2.5% - 3%)

Additional Considerations

Real estate commissions in Ontario may also include:

• Transaction fees (1% of sale price)
• Land transfer tax (varies by municipality)
• HST (13% on the total commission)

Worked Examples

Example 1: Residential Property

A residential property sells for $500,000 with a standard 2.75% commission rate.

This would typically be split 50/50 between the selling and buyer's agents, resulting in $6,875 each.

Example 2: Commercial Property

A commercial property sells for $1,200,000 with a 3.2% commission rate.

With a 50/50 split, each agent would receive $19,200.