Closing Cost to Sell a House: A Complete Calculation

Closing Cost of Selling a House

Similar to the home buyer who has to pay a large sum of closing costs, the closing cost to sell a house in Ontario is not cheap either. Let’s go over the details about the closing costs of selling a house in Toronto. 

Home Staging and Renovations

  • You may choose home staging for faster and better sales, but it costs you $3000 on average. 
  • You may also have to fix up some minor things or make some renovations. The cost is variable, but most of the renovations' investment may not be recouped.

Mortgage Penalty

  • If you have a mortgage on your current home, you probably will have to pay a penalty to your lender. 
  • The cost varies with a few factors: your signing date, contract terms, your mortgage balance, mortgage rate, and the interest type you choose (fixed or variable).
  • The cost is normally 3 months interest.

Home Inspection

  • Home buyers usually put a condition on a home inspection. However, there are some benefits to getting it done by sellers before listing. 
  • For example, It may identify the unknown house problems which need either to be fixed or to be disclosed. It may assure the buyer about the home's condition and increase the chance for the buyer to bid. 
  • The relevant cost ranges from $300 to $500.

Status Certificate

  • If your property is a condo, you may want to order a status certificate at a cost of $100 before the listing.
  • It has similar benefits as home inspection, though in many cases, the status certificate cost is paid by the buyer.


  • The commission is a large part for the seller to pay. It depends on the listing option you choose. 
  • In a conventional way, it ranges from 3%~5% of the home selling price, in total for both the listing agent and buyer agent. 
  • Some sellers would like to negotiate a very low realtor fee with the listing agent, but the commission to the buyer agent normally stands around2%~ 2.5% in GTA.

Real Estate legal fee

You need a lawyer to help you finalize the closing with the buyer's lawyer. Though it is normally cheaper than that of a buyer, it costs you around $800.

Capital Gain Tax

If you are a non resident, defined by CRA, you would pay the applicable tax, then get proof from CRA. Otherwise, the buyer’s lawyer will withhold 25% of the sale price.

Closing Adjustment

Property tax, utility fees will be allocated proportionally on the closing day, depending on whether you have prepaid or accrued.

Repairs or replacements cost

The home buyer may request you make repairs or replacements after the home inspection or ask you to cover those anticipated expenses.

Moving costs

Varies largely on whether you hire a company or do it on your own.