What closing costs do sellers pay in Ontario when selling a home?

Sellers in Ontario typically pay legal fees, including preparing the statement of adjustments, and a mortgage discharge fee. Many also pay realtor commission, which is typically 2% to 6% of the sale price and is negotiable.

Other costs depend on your situation. They may include mortgage prepayment penalties, moving costs, staging fees, repairs and cleaning. Commission is a service related to Ontario real property, so HST at 13% applies to it. A prepayment penalty is usually the higher of three months' interest on the outstanding balance or the interest rate differential.

Which of these apply to you depends on your own sale. Whether you have a mortgage to discharge, whether you use a realtor, and whether you stage or repair the home all change your list. The amounts of a discharge fee and a prepayment penalty depend on your mortgage contract and your lender. If you are a non-resident of Canada, you must also notify the CRA within 10 days of the sale, and late notice carries a penalty. Before you list, gather your mortgage documents and ask a lawyer to help you estimate what will come out of your proceeds.