What is the typical real estate commission rate in Ontario?

Commission rates in Ontario are not fixed by law or by any regulatory body — they are freely negotiable between a seller and their chosen brokerage. Historically, a common structure was a total commission of around four to five percent of the sale price, often split between the listing brokerage and the buyer's brokerage, but actual rates vary widely.

Flat-fee and discount brokerages have introduced more flexibility in recent years, offering services ranging from basic MLS listing packages to full-service representation at reduced rates. High-volume agents in competitive urban markets may negotiate lower percentages for higher-priced properties. In some cases sellers offer a fixed dollar-amount co-operation fee to buyer's brokerages rather than a percentage.

When comparing brokerages, ask specifically what services are included for the commission quoted — marketing budget, staging advice, number of open houses, negotiation support, and presence at closing all vary. A lower commission on a property that takes longer to sell or sells for less may not be the better deal. Discuss the full commission structure with your lawyer before signing any listing agreement.