Thinking of Selling Your Home? Don’t Forget These Hidden Costs
Many people are familiar with the costs involved in buying a home in Ontario—land transfer taxes, legal fees, home inspections—but it’s easy to overlook the expenses that come with selling a property.
If you're planning to put your home on the market, it’s crucial to be aware that selling isn’t free—there are several fees and financial obligations that can quickly add up and impact your final profit.
Curious about how much it really costs to sell a home in Ottawa?
Keep reading—we’ll break down the key expenses every seller should know about.
1. Real Estate Commission
Typically 4% to 5% of the sale price (plus HST).
Split between seller’s and buyer’s agents.
Negotiable or avoidable (if selling privately or using discount brokerages).
Visit Low Commission Fees to list your house for flat fee.
2. Legal Fees
Average: $800 to $1,500 (plus disbursements and HST).
Covers title transfer, discharge of mortgage, and closing documents.
Disbursements may include title search, registration, and courier fees.
3. Mortgage Discharge Penalties
Discharge Fee: Usually $200–$400.
Prepayment Penalty:
Either 3 months’ interest or
Interest Rate Differential (IRD) — often more expensive.
Applies if you're breaking a fixed mortgage before maturity.
4. Home Staging & Preparation
Optional but can boost sale price.
Costs vary: $500 to $5,000+ depending on the level of service.
Includes cleaning, furniture rental, decor, and professional photography.
5. Moving Expenses
Local move: Typically $1,000 to $3,000.
Includes truck rental, professional movers, packing supplies, and possible storage.
Costs increase with distance or home size.
6. Capital Gains Tax (If Applicable)
Principal residence: Exempt from capital gains tax.
Investment property or secondary home: 50% of the capital gain is taxable.
Calculated as:
Sale Price − (Purchase Price + Eligible Expenses + Selling Costs)
7. Status Certificate (For Condo Sellers)
Mandatory for condo sales.
Cost: Around $100–$150.
Provides financial and legal details about the condo corporation for the buyer.
8. Land Transfer Tax
Sellers don’t pay this on the sale, only applies if you're buying another property.
Ontario Land Transfer Tax
First-time buyer rebates may be available.
Conclusion
Selling a property in Ottawa comes with a variety of costs—some expected, others less obvious. While real estate commission remains the largest expense for most sellers, legal fees, mortgage penalties, and closing adjustments can also add up quickly. On average, you should plan to spend around 4% to 6% of your home’s selling price to cover all related costs.
However, with careful planning—like negotiating commissions, choosing the right service providers, and timing your sale wisely—you can significantly reduce how much you pay out of pocket. Understanding these expenses upfront allows you to budget accurately and walk away from your sale with confidence—and more money in your pocket.