The cost of selling a home in Ottawa comes mainly from five sources: the real estate commission plus HST, legal fees, a mortgage discharge or prepayment penalty if a term is broken early, home preparation and staging, and moving costs. None of these are optional line items to discover after the fact — knowing them ahead of time is what lets a seller calculate real net proceeds and budget with confidence. This guide breaks down each cost so nothing comes as a surprise at closing.
Getting an accurate picture of what a specific sale will actually cost — and where there’s room to save — is part of the planning Jason Polonski does with every seller from the first conversation. Jason offers a competitive 1% listing commission option that can meaningfully reduce the highest cost on this list. For a cost breakdown specific to a home, call or text Jason at (613) 601-9333 or request a free home evaluation.
The main pieces of what selling actually costs — capital gains when selling your own home, what you’ll net after costs, the mortgage prepayment penalty, and whether you have to pay off your mortgage.
The main costs of selling a home in Ottawa
Selling costs fall into a few predictable categories, and most are proportional to the sale price or the complexity of the transaction.
| Cost | What it covers | Notes |
|---|---|---|
| Real estate commission | Listing and cooperating brokerage fees | HST applies; ask about Jason’s 1% listing commission option |
| Legal fees & disbursements | Lawyer closes the sale, transfers title, handles disbursements | Varies with the complexity of the transaction |
| Mortgage discharge/penalty | Releasing the lender’s claim on the property | Only applies if paying out or breaking a mortgage early |
| Staging & preparation | Cleaning, minor repairs, staging, inspection if desired | DIY prep costs far less than a full professional stage |
| Moving costs | Movers, a rental truck, storage, and packing supplies | Scales with distance and the amount being moved |
Real estate commission
Commission is typically the largest single cost in a home sale, and it’s split between the listing brokerage and the buyer’s brokerage. HST applies to commission, which is worth factoring into any estimate. This is also the cost with the most room to save — Jason’s 1% listing commission option keeps the listing side of the fee low without cutting corners on service, and the full explanation is on how much is a real estate agent’s commission. The Canadian Real Estate Association and Ontario Real Estate Association both outline the standards behind the professional service a commission covers.
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Legal fees and disbursements
A real estate lawyer is required to close a sale in Ontario, review the offer, discharge the existing mortgage if needed, settle property tax and utility adjustments, and manage the title transfer. Legal fees vary with the complexity of the transaction, and it’s worth getting a quote directly from a lawyer rather than assuming a flat rate. The Law Society of Ontario can help find a licensed real estate lawyer.
Mortgage discharge and prepayment penalties
If there’s an existing mortgage, the lender typically charges a discharge fee to release their claim on the property, and breaking a mortgage before its term ends can trigger a larger prepayment penalty — often calculated as either three months’ interest or the interest rate differential, depending on the mortgage type. It’s worth contacting the lender early to understand these costs before listing, since they can be significant on a fixed-rate mortgage broken well ahead of renewal. The Financial Consumer Agency of Canada explains how these penalties are typically calculated, and current mortgage rate context is available from the Bank of Canada.
Get Cash Back When You Buy a Home in Ottawa
Can you get cash back when buying a home in Ottawa? Yes. Jason Polonski, a Chairman's Club REALTOR® serving Ottawa and Kanata, shares part of his commission with buyers — up to $3,000 cash back at closing.* You still get full-service, award-winning representation: expert pricing, sharp negotiation, and hands-on guidance from first showing to keys in hand. No cut corners and no rebate-only shortcuts — just real money back in your pocket when you buy your Ottawa or Kanata home.
Staging and preparation costs
Preparation costs range widely depending on how much work a seller chooses to do. DIY staging — decluttering, cleaning, and rearranging existing furniture — costs very little, while professional staging adds a meaningful but often worthwhile expense, particularly on vacant or higher-priced homes. Minor repairs and touch-ups before listing are usually far cheaper than the price reduction an unaddressed issue can cause later. The Real Estate Staging Association has data showing staged homes tend to sell faster, which can offset the upfront cost. The full staging approach is about how to stage a home.
Property tax and utility adjustments
Outstanding property taxes and utility bills up to the closing date are typically settled through adjustments handled by the lawyer, and a seller who has prepaid taxes may be reimbursed by the buyer at closing. This is a routine part of closing, not an extra cost, but it’s worth understanding so the numbers at closing make sense.
Moving costs
Moving costs scale with distance and the volume being moved, from a DIY truck rental for a short local move up to a full-service long-distance move with packing included. Storage fees add up if there’s a gap between selling and the next move-in date — which is exactly the timing risk a move coordinator plans around from the start.
Capital gains tax on a principal residence
Selling a principal residence in Canada is generally exempt from capital gains tax under the Canada Revenue Agency’s principal residence exemption. An investment or secondary property is generally treated differently and may trigger capital gains tax on a portion of the profit. Because tax treatment depends on individual circumstances, it’s worth confirming the details with an accountant or tax professional before listing an investment property. Current Ottawa Real Estate Board statistics can also help estimate a realistic sale price for tax planning purposes.
What sellers don’t pay: land transfer tax
Land transfer tax in Ontario — and the additional municipal tax in Ottawa where applicable — is a buyer’s cost, not a seller’s. Sellers who are also buying their next home should budget for it on the purchase side; the current rates and any first-time buyer rebate are published directly by the Government of Ontario.
HST on selling-related services
While the sale of an existing home itself isn’t subject to HST, many of the services involved in selling one are — commission, legal fees, a home inspection, and staging all carry HST. Factoring this into a cost estimate avoids an unwelcome surprise at closing. The Canada Revenue Agency’s GST/HST guidance explains how HST applies to services more broadly.
How to reduce the cost of selling
A few decisions meaningfully lower the total cost of a sale without cutting corners on the result. Choosing a REALTOR® with a competitive commission structure, like Jason’s 1% listing commission option, is the single biggest lever. Talking to the mortgage lender early can avoid an unnecessarily large discharge penalty, and handling straightforward staging and minor repairs personally — while still investing in the high-return items — keeps preparation costs down. Getting quotes for legal and moving services rather than accepting the first one is a simple way to trim smaller costs across the board.
Commission is usually the largest line when you sell — estimate yours with the Ontario realtor commission calculator, and read how to negotiate realtor commission in Ontario to keep more of it.
Get a clear cost breakdown from an Ottawa REALTOR®
Understanding the real cost of selling — and where there’s genuine room to save — is part of the planning that happens before a home ever lists, and it’s exactly what Jason Polonski walks every seller through. With 15+ years selling homes across Ottawa and the west end and recognition on the Best in Ottawa Top REALTOR® list seven years running, Jason provides a clear, upfront breakdown so sellers know their net proceeds before committing to anything.
His results and client reviews are on his Google Business Profile. To get a cost estimate for a specific home, call or text Jason at (613) 601-9333, request a free home evaluation, or explore the full guide to selling your house in Ottawa.
Cost of Selling a Home (FAQs)
The main costs are the real estate commission plus HST, legal fees, a possible mortgage discharge or prepayment penalty, home preparation, and moving costs. The total varies by home and situation, but commission is typically the largest single expense — a competitive commission structure is the best way to reduce it.
If the home is a principal residence, it’s generally exempt from capital gains tax under the CRA’s principal residence exemption. An investment property is usually treated differently, and it’s worth confirming the specific tax treatment with an accountant.
No. Land transfer tax, including any additional municipal tax in Ottawa, is paid by the buyer, not the seller. A seller who is also buying their next home should budget for it on that purchase.
A mortgage discharge fee is charged by the lender to release their claim on the property at closing, and breaking a mortgage before its term ends can add a larger prepayment penalty. Contacting the lender early helps a seller understand and budget for these costs before listing.
Staging isn’t mandatory, but it can help a home sell faster and look better both online and in person, which often offsets the upfront cost. DIY staging keeps costs low, while professional staging tends to make the most difference on vacant or higher-priced homes.
Choosing a REALTOR® with a competitive commission, talking to the mortgage lender early about discharge costs, handling straightforward prep personally, and getting multiple quotes for legal and moving services are the most effective ways to lower the total cost without hurting the outcome.
