The costs associated with the sale of a home are not quite as complicated as for buyers, but they can be just as significant.
Real Estate commissions
The big fee sellers are required to pay is the commission fee, for both your own and the buyer’s realtors. Generally, the total cost is 5% (2.5% for each brokerage), but you can sometimes negotiate a lower rate. HST is added to this.
You also need a lawyer when you sell, to discharge the title and mortgage, verify that all prepaid expenses are returned and utilities and other services cleared, and to handle the actual transaction. The cost is around $1,000 plus HST. Most lawyers charge less to process sales than purchases. Disbursements are extra.
If you have a “closed” mortgage and sell your home before the mortgage matures, there may be penalties and discharge fees, which can amount to as much as three months’ worth of mortgage payments, plus a discharge fee. If you transfer the mortgage to your new home, however, most lenders will waive this fee. Open mortgages usually carry higher interest rates but can be transferred or discharged without penalty.