How Much Does a Real Estate Agent Cost in Ontario?
Real estate commission in Ontario is fully negotiable — there's no fixed or legislated rate — but most residential deals in London still land somewhere in the 3.5% to 5% range, split between the buyer's and seller's agents. Here's how commission actually works, what "REALTOR®" means versus a licensed real estate agent, and what to ask before you sign anything.
Eric Cassidy
London Ontario Real Estate Agent, Cassidy & Co.
How Much Does a Real Estate Agent Cost in Ontario?
Commission is negotiated between you and your brokerage before you sign a listing or representation agreement — it is never set by law, by a real estate board, or by RECO. In practice, most London Ontario transactions in 2026 fall between 3.5% and 5% of the sale price total, typically split so the buyer's agent earns around 2.5% and the seller's agent earns the remainder, though the exact split and total are always a matter of agreement, not convention. HST (13% in Ontario) applies on top of whatever commission is agreed to, which adds roughly another 0.5% of the sale price to the real cost.
Because it's fully negotiable, don't treat any number — including the ranges above — as a quote. Ask directly what your agent charges and what's included before you sign anything.
Who Actually Pays the Commission?
In most Ontario transactions, the seller pays the full commission out of the sale proceeds, which is then split between the seller's brokerage and the buyer's brokerage as arranged in the listing agreement. As a buyer, this means you typically don't pay your agent directly — though following recent industry changes, buyer representation agreements now more clearly spell out how buyer-agent compensation is arranged, so it's worth confirming this explicitly with any agent before you start touring homes.
REALTOR® vs. Real Estate Agent — What's the Actual Difference?
In Ontario, every real estate salesperson and broker must be licensed and regulated by RECO (the Real Estate Council of Ontario) — that's the legal requirement to trade in real estate at all. "REALTOR®" is a separate, trademarked designation: it means that licensed agent is also a member of their local real estate board (like LSTAR here in London) and, by extension, CREA (the Canadian Real Estate Association), which requires adherence to CREA's Code of Ethics on top of RECO's licensing rules.
What this means for you: every REALTOR® is a licensed real estate agent, but not every licensed agent has chosen to become a REALTOR®. It's a meaningful distinction, not just a title — ask directly whether the person you're working with holds the REALTOR® designation and is a member of LSTAR, CREA, and OREA.
What Should You Actually Get for That Commission?
Commission isn't just a fee for putting a lockbox on your door — a full-service REALTOR® handles pricing strategy, professional marketing, negotiation, contract management, coordination with lawyers and inspectors, and the dozens of small logistics that can derail a deal if no one's watching them. The value is easiest to see in what goes wrong without it: underpriced or overpriced listings, weak negotiating position, missed conditions, or deals that fall apart on details a full-time professional would have caught early.
If you're specifically trying to figure out how to evaluate an agent's track record and fit before you commit to one, we've covered that in depth separately — see how to identify the top realtors in London, Ontario and how to choose a real estate agent in London Ontario for the full criteria to look for.
Frequently Asked Questions
What percentage do most REALTORS® charge in Ontario?
Most Ontario transactions in 2026 see total commission somewhere between 3.5% and 5% of the sale price, but this is fully negotiable and never set by law — always confirm the specific rate directly with your agent.
What is the difference between a REALTOR® and a real estate agent in Ontario?
Every real estate agent in Ontario must be licensed through RECO, but "REALTOR®" specifically means that agent is also a member of their local real estate board and CREA, and follows CREA's Code of Ethics. All REALTORS® are licensed agents, but not all licensed agents are REALTORS®.
Who pays the real estate agent's commission in Ontario?
Typically, the seller pays the full commission out of sale proceeds, which is then split between the seller's and buyer's brokerages. Buyer-agent compensation arrangements should still be confirmed directly and in writing before you start working with an agent.
Is real estate commission negotiable in Ontario?
Yes. Commission in Ontario has never been fixed by law or by any real estate board — it's negotiated directly between you and your brokerage and should be discussed openly before you sign a listing or representation agreement.
Does HST apply to real estate commission in Ontario?
Yes, Ontario's 13% HST applies on top of whatever commission is agreed to, adding roughly another 0.5% of the sale price to the total cost of hiring an agent.
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No pressure, no vague quotes — I'll walk you through exactly what commission looks like for your specific sale or purchase in London Ontario, and what you get for it.
Eric Cassidy
London Ontario Real Estate Agent — Cassidy & Co.
Eric Cassidy is a REALTOR® and founder of Cassidy & Co. Real Estate, a member of LSTAR, CREA, and OREA, serving buyers and sellers across London, Ontario. He believes in being upfront about cost from the first conversation. Learn more about Eric and the team.
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