Mortgage · Canada
Buyer vs seller closing costs.
In Canada the buyer pays the land transfer tax and their own legal bill; the seller pays the commission, their own lawyer and the cost of paying off the old mortgage. Enter one sale and see both sides.
On an $800,000 Ontario sale with 20% down and a 5% commission, the buyer needs about $15,709 in cash to close (land transfer tax $12,475), and the seller pays about $47,195 (commission $40,000 plus $5,200 HST), before any mortgage penalty.
Inputs
Buyer and seller
Fill the form and press Calculate.
Who pays what
| Cost | Usually paid by |
|---|---|
| Land transfer or property transfer tax, registration fees | Buyer |
| Buyer’s lawyer or notary, title insurance, inspection, appraisal | Buyer |
| Real estate commission and the tax on it | Seller |
| Seller’s lawyer, mortgage discharge fee, prepayment penalty | Seller |
| Property tax and utility adjustments | Split by the possession date |
These are customary, not legal requirements: the agreement of purchase and sale controls, and a commission is whatever the listing agreement says. GST or HST is charged on the commission and on legal fees at the rate for the province: 13% in Ontario, 14% in Nova Scotia and 5% GST in British Columbia, Alberta, Saskatchewan and Manitoba. Provincial sales tax on legal services is not modelled.
Worked example. An $800,000 Ontario sale, 20% down, 5% commission: the seller pays $40,000 commission, $5,200 HST on it, $1,500 legal plus $195 HST and a $300 discharge fee, $47,195 in all. The buyer pays $12,475 of land transfer tax plus $1,800 legal, $234 HST, $350 title insurance, $500 inspection and $350 appraisal, $15,709.
The seller’s costs come out of the sale proceeds rather than being paid in cash beforehand. For the full net-proceeds picture after the mortgage payoff, use the real estate commission calculator.
Sources and as-of dates
- CRA: GST/HST rates by province (Nova Scotia 14% from April 1, 2025).
- Transfer tax and fee sources for each province are listed on its page: Ontario, BC, Alberta, Saskatchewan, Manitoba, Nova Scotia.
- Commission, legal fees, discharge fees, prepayment penalty, title insurance, inspection and appraisal are figures you enter or TNAADO placeholders, not published rates.
Sources, read 18 October 2026: CRA: GST/HST rates by province (Nova Scotia 14% from 1 April 2025); Ontario land transfer tax; BC property transfer tax; Alberta Land Titles fees.
Frequently asked questions
Who pays closing costs, the buyer or the seller?
Both, for different things. The buyer pays land transfer tax, registration fees, their own legal fees, title insurance and inspection. The seller pays the real estate commission, their own legal fees and the costs of discharging their mortgage.
How much are seller closing costs in Canada?
Mostly commission. At 5% plus HST on an $800,000 Ontario sale it is $45,200 before legal fees, discharge fees and any mortgage penalty. The commission rate is negotiated, so enter your own.
Is there tax on the real estate commission?
Yes. GST or HST applies to the commission at the rate for the province: 13% HST in Ontario, 14% in Nova Scotia and 5% GST elsewhere in this tool.
Who pays land transfer tax?
The buyer, in cash on closing. The seller does not pay it.
Does the seller pay a mortgage penalty?
If the seller breaks a mortgage before the end of the term, the lender charges a prepayment penalty out of the sale proceeds. Enter the figure from your lender, or zero if you are at the end of your term or porting the mortgage.
Is this the same as net proceeds?
No. Net proceeds also subtract the mortgage balance. This page shows the closing costs on each side; the commission calculator links above handle the payoff.
Estimate only — confirm with your lawyer or notary
This tool applies published rates to the numbers you type. It is not legal, tax or financial advice, it is not an official calculator of any government, and it does not look anything up in a land registry. Rules, exemptions and fee schedules change, and eligibility depends on facts it cannot see. Confirm every figure with your lawyer or notary and lender before closing.