Closing Costs for Sellers in Toronto: Full Breakdown (2026)

The summary

For a typical $750K Toronto condo sale at 5% + HST commission, with a $400K mortgage to discharge, here's the line-by-line:

Capital gains tax (if applicable) is separate — not deducted at closing but reported on your year-end T1.

Realtor commission (the big one)

5% + HST is the largest single line. On $750K that's $42,375. The full amount is paid by your lawyer's trust account at closing — the brokerage receives the funds before net proceeds wire to you.

See our commission rates guide for the negotiation context. The 5% number is conventional; rates vary.

Mortgage discharge

Your existing mortgage must be paid off at closing. Your lender provides a payout statement to your lawyer 5–10 days pre-closing showing:

• Principal balance.
• Interest accrued to closing date.
• Discharge fee ($200–$400 depending on lender).
• Pre-payment penalty IF you have a closed term and the mortgage isn't at maturity.

The pre-payment penalty is the seller surprise. On a 5-year fixed mortgage broken early, the penalty is the greater of three months' interest or Interest Rate Differential (IRD). On a $400K balance with a couple of years remaining, the IRD can be $5,000–$15,000 — sometimes more.

Variable-rate mortgages typically have a three-month interest penalty regardless. Open mortgages have no penalty.

The discharge can also be PORTED to a new mortgage if you're buying another property concurrently — lender-permitting. This avoids the penalty.

Legal fees and disbursements

Selling a Toronto condo, legal fees typically run $1,000–$1,800 all-in. The work: reviewing offer, preparing closing documents, responding to buyer's lawyer requisitions, discharging mortgage, transferring rent deposit (if tenanted), preparing Statement of Adjustments, attending to closing.

Selling is typically cheaper legal work than buying because there's less title-search and lender-coordination work.

HST and capital gains

HST on the SALE itself doesn't apply for resale residential condos (exempt). HST DOES apply on the realtor commission.

Capital gains tax (if applicable) is not deducted at closing — it's reported on your year-end T1 return. But sellers should set aside the estimated tax from net proceeds:

• Principal residence sale: $0 tax.
• Investment property: estimate at your marginal rate × (inclusion rate × gain).

For a non-resident seller, a portion of proceeds is withheld at closing pending CRA's Section 116 certificate — engage your accountant before listing.

Pre-paid adjustments

The Statement of Adjustments adjusts for items pre-paid into the future:

• Property tax (you've pre-paid through the year; buyer refunds you for the portion past closing).
• Condo fee (similar).
• Utilities (sometimes).

Net adjustments are usually small ($200–$1,000) and can go either way depending on the timing of last payments.

Optional / situational costs

Not always but sometimes:

• Staging ($1,500–$3,500).
• Professional photography ($400–$800) — often included in commission.
• Pre-listing repairs ($0–$5,000+).
• Pre-listing condo cleaning ($250–$500).
• Tenant cooperation compensation (1–3 months rent if mutual termination).
• Moving costs ($600–$3,000+).
• Hold-over interest on next property (if your new place closes before this one).

The total seller transaction cost for a typical Toronto condo: roughly 6–8% of sale price all-in.