- Commission is negotiable and set by agreement, not by law.
- It's usually split between the listing agent and the buyer's agent.
- GST or HST is charged on top of the commission.
- Selling privately with No Commission System costs the seller $0.
How commission is calculated
Two structures are common in Canada:
- Flat percentage: a single rate on the whole price, often 4% to 5% total (common in Ontario and Atlantic Canada).
- Tiered: a higher rate on the first $100,000 and a lower rate on the balance, for example 7% + 3% (common in Alberta) or 7% + 2.5% (common in BC).
Rates vary by market, brokerage and agent, and everything is negotiable.
Worked examples (before GST/HST)
| Sale price | 5% flat | 7% / 3% tiered | 7% / 2.5% tiered |
|---|---|---|---|
| $300,000 | $15,000 | $13,000 | $12,000 |
| $500,000 | $25,000 | $19,000 | $17,000 |
| $750,000 | $37,500 | $26,500 | $23,250 |
| $1,000,000 | $50,000 | $34,000 | $29,500 |
Add 5% GST in Alberta, Saskatchewan, Manitoba, BC and the territories, or HST in Ontario (13%) and Atlantic Canada.
What about flat-fee MLS listings?
Flat-fee or "mere posting" services list your home on MLS for a few hundred to a couple of thousand dollars, but you still do the work, and you're usually expected to offer the buyer's agent a commission of around 2.5%. Compare options in FSBO vs realtor vs flat-fee MLS.
How No Commission System keeps it at $0
There's no agent in the deal, so there's no commission. You keep selling your home yourself and add a private-financing header to your ad. Buyers who can't get a bank mortgage call, the private lender qualifies them, and lawyers close it. We're paid on the buyer's side through the financing, so the seller pays nothing.
Sell it yourself, with more buyers calling
Add the private-financing header to your ad and let our private lender qualify the buyers the banks turn away. No commission, no contract, no obligation. Listing takes about 5 minutes.
Frequently asked questions
What is the average realtor commission in Canada?
There is no set rate. Totals commonly range from about 3% to 7% of the price, split between the listing and buyer's agents, plus GST or HST.
How much commission on a $500,000 house in Alberta?
Using the common 7% on the first $100,000 and 3% on the balance, it's $19,000 plus GST, or $19,950 in total.
Is realtor commission negotiable in Canada?
Yes. Commission is set by agreement between you and the brokerage. It's not fixed by law.
Do I pay GST or HST on realtor commission?
Yes. GST or HST is charged on top of the commission in every province.
Is it really commission free?
Yes. There is no agent in the deal, so there are no real estate fees. Only you, the buyer and the private lender take part.
How much does No Commission System cost the seller?
Nothing. There are no fees, no commission and no contract. We're paid on the buyer's side, through the private financing for buyers who can't get a bank mortgage.
Related guides
General information for Canadian home sellers, not legal, tax or financial advice. Rules and fees change, so confirm the details with a real estate lawyer in your province before you sell.