GTA selling costs: what comes off the sale price?

At a glance: the sale price is not the cash you receive. Subtract the mortgage payout, the agreed brokerage fee plus HST, legal and discharge costs, and the cost of preparing and moving. What is left is the number that funds your next move.

Start with the amount you could actually use

A home selling for a certain price does not mean the seller receives that amount in available cash.

Before planning your next purchase, separate three numbers: the estimated sale price, the expenses associated with selling, and the money required to pay out debt secured against the property. That gives you a more useful starting point than a headline valuation.

The main costs to include

Brokerage fees. Use the amount and services in your actual agreement. There is no single fee that should be treated as standard for every transaction, and HST applies to the fee. RECO explains that compensation can be a fixed amount, a percentage or a combination.Mortgage payout. Ask your lender for a payout estimate based on the expected closing date. Your latest statement balance may not include every amount required to discharge the loan, such as a prepayment charge.Legal and discharge costs. Get a quote from your lawyer and confirm what it includes.Preparation and moving. Repairs, cleaning, storage, staging and moving affect your cash even when they are paid before closing.Adjustments and other obligations. Property-tax adjustments, condominium matters and other secured balances can change the final statement.

The Financial Consumer Agency of Canada lists commissions, legal costs and mortgage-related costs as part of selling a home. Your actual figures should come from the relevant agreement or provider.

An illustrative proceeds worksheet

The following is a made-up planning example, not a fee quote or property valuation.

Item	Example
Assumed sale price	$1,000,000
Illustrative agreed brokerage fee	−$40,000
Ontario HST on that fee (13%)	−$5,200
Illustrative legal / discharge allowance	−$2,500
Illustrative moving allowance	−$1,500
Illustrative preparation allowance	−$4,000
Assumed mortgage payout	−$500,000
Estimated cash remaining	$446,800

The mortgage payout in this example must include any lender charges. Other debts, adjustments or transaction-specific taxes would change the result.

The remaining cash is also not automatically your down payment for the next property. You may need to keep money back for purchase closing costs, immediate work and emergencies.

Use a range, not one optimistic number

Build three scenarios: a lower sale outcome, your working estimate and a stronger outcome. Keep the cost assumptions visible.

• Does the move still work at the lower outcome?
• How much reserve would remain?
• Does the next purchase depend on selling first?
• Which costs need a firm quote before you commit?

Prepare for your seller review

Bring your address, preferred moving window, approximate mortgage balance and a list of major updates. Bank statements are not needed to begin the conversation.

Read next: Sell first or buy first? Build the move around your cash and dates

Illustrative planning information, not a guaranteed sale price, lender payout or tax calculation. Confirm transaction-specific amounts with the relevant professionals. Inderpal Sidhu, Salesperson · HomeLife Silvercity Realty Inc., Brokerage.

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Inderpal Sidhu, Salesperson · HomeLife Silvercity Realty Inc., Brokerage. Not intended to solicit properties or clients already under contract with another brokerage.