Sell a home for $950,000 with a $380,000 mortgage and a 5% commission, and the costs pile up quickly. The commission is $47,500, plus $6,175 of HST. Add $2,000 of legal fees and $3,000 for staging and moving, and you keep about $511,325. A home that isn’t your principal residence may owe tax as well.
What comes off the price
Four items reduce the sale price: the mortgage balance, the agents’ commission, tax on that commission, and smaller costs like legal fees and repairs. Leave a fixed-term mortgage early and a penalty joins the list. Enter each one and the calculator returns your net figure.
Commission and HST
Commission is a percentage of the price, shared between the two agents. Ontario adds 13% HST on top, which is $6,175 on $47,500. Pick your province and the tax follows its rate. Ask first what the fee covers.
Here is the full sum. The price is $950,000. Subtract the mortgage of $380,000, the commission of $47,500, the HST of $6,175, legal fees of $2,000 and $3,000 for staging and moving. Those deductions total $438,675, which leaves $511,325. People often forget the HST on the commission and think their proceeds are $6,175 higher. Compare each line with your lawyer’s statement at closing.
The mortgage payout
Your lender can send a payout statement dated near closing day. It lists the balance, interest owed and any penalty. Fixed-rate penalties can run high, so try the mortgage penalty calculator before listing. A portable mortgage might let you dodge it.
Principal residence
When the home was your principal residence for every year you owned it, Canada doesn’t tax the gain. You must still report the sale on your return. Keep the box ticked to skip tax, and untick it for a rental or second home.
Tax on the gain
For other properties, half the capital gain joins your income. The calculator takes your price minus selling costs, then subtracts your cost base: what you paid, buying costs and improvements. On a $297,500 gain with $90,000 of other income, tax comes to about $65,400.
A practical way to use the figure is to test three prices. Every $10,000 change in the sale price also changes the commission, and at 5% plus 13% HST the agents’ share of that change is $565, so you keep $9,435. Lower prices hurt less than they seem for that reason, but the mortgage balance stays fixed. Compare the net figure with the down payment you need for your next home.
Costs people forget
Staging, cleaning, minor repairs, moving and overlapping housing can reach several thousand dollars. Property tax and utilities get adjusted at closing. Put them in the staging and moving field, or the result will read too high.
Toronto and Ontario sellers
Land transfer tax falls on the buyer, so sellers owe none, but the city’s usual closing adjustments still apply. Selling and buying on the same day calls for early plans on bridge financing and the moving date. A few days before closing, your lawyer will send a statement of adjustments.
Timing the sale
Spring and fall tend to bring more buyers to Toronto, and winter sales can drag. If your mortgage term ends soon, selling after renewal may avoid a penalty. Try a few prices in the calculator to see how much the final offer moves your proceeds.
Using the result
Net proceeds are the cash you can put toward your next home once every bill at closing has been paid. The down payment calculator shows what that buys. Commission rates can be compared in the real estate commission calculator, tax rules reviewed in the capital gains tax calculator, and the closing budgeted with the closing costs calculator.
Frequently asked questions
How much do I keep after selling my house?
Sale price minus the mortgage, commission with HST, legal fees, other costs, penalty and any tax.
Is HST charged on real estate commission?
Yes. In Ontario the rate is 13%.
Do I pay tax on selling my home?
Not on a principal residence, but you must report the sale.
How is the capital gain worked out?
Sale price minus selling costs minus your cost base.
Will I pay a mortgage penalty?
Possibly, if you end a fixed-term mortgage before it matures and cannot port it.
What other costs should I plan for?
Staging, repairs, moving and adjustments at closing.
Sources and updates
Last reviewed: . Full disclaimer. How we build calculators. Editorial policy.
Estimate only. This calculator gives general information for planning. It is not tax, legal or financial advice, and it is not affiliated with the City of Toronto, MPAC or the Canada Revenue Agency. Results depend on the numbers you enter and may differ from official amounts. Check official sources or a qualified professional before you decide.