Has The Toronto Bubble Finally, Popped?
Most Toronto real estate teams charge around 5% of the final sale price, split between the listing agent and the buyer’s agent, plus HST.
In Toronto, the typical commission rate is 5% of the property’s final sale price, with half (2.5%) going to the listing team and half (2.5%) to the buyer’s agent. Applicable HST is charged on commissions and is collected by the seller’s lawyer at closing, then distributed to the teams involved.
That said, a commission rate is not fixed. Rates are negotiable, and service levels vary. Some discount options may advertise lower commission rates, while full-service real estate teams, such as Fox Marin Associates, provide luxury marketing, data-driven pricing strategies, and concierge-level support designed to maximize your net return.
For context, Toronto home prices vary widely by product type and neighbourhood. In August 2025, TRREB reported that the average downtown condo sold for $740,000 and the average detached house in the east end traded above $1.35 million. On a $1.35M sale, a 5% commission rate equals $67,500 plus HST. Still, the seller’s net proceeds often benefit from enhanced marketing and pricing strategies that generate stronger offers and shorter days on market.
Commission rate details are always confirmed in writing through a listing agreement signed between the seller and the brokerage. Sellers should review this agreement carefully to understand both the cost and the services provided.
Key takeaway: In Toronto, the standard real estate commission rate is 5%, but what matters most is the value your real estate team brings to the table.
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