The most expensive thing or the biggest purchase of one’s life is a ‘HOUSE’. And, when you plan to sell it, you want your real estate agent to sell it with the maximum fee they can. However, the question remains, what is the real estate agents fees in Canada? Well, don’t give useless stress to yourself. 

We have mentioned some of the factors you can try on several Canadian real estate agents while hiring one. Also, make sure the one you hire has a Realtor licence and works as per the standard code of ethics of the Canadian Real Estate Association (CREA).

Realtor or a Real Estate Agent, What to Choose?

Realtor or a Real Estate Agent What to Choose

Both Realtors and real estate agents assist you in selling and buying your home. But what’s the difference? How does it matter whether you choose a realtor or real estate agent?  Let’s understand the difference between a real estate agent and a realtor in Canada.


Real Estate Agent

A realtor is a professional in the real estate industry and a member of the Canadian Real Estate Association (CREA), a professional real estate association. Real estate agents are more like salespeople or work for agencies and get paid on a commission basis.
Realtors display their cards with a Realtor symbol (REALTORS®) trademark on them. The real estate agent can be a broker, a salesperson, or any other professional working for a real estate agency.
Realtors follow a code of ethics* and keep on training throughout their careers. They have to be aware of every ongoing change in the real estate industry.

Code of Ethics include 

    • In writing, they must disclose who they are representing as an agent.
    • They cannot acquire any interest in any property without telling their identity as real estate professionals.
    • Follow strict Standards of Conduct to ensure the protection of the rights and interests of consumers. 
    • To abide by the Code of Ethics. If broken (any code), the licence will be cancelled. 

Though we can conclude that both terms are used interchangeably, they are different in terms of work. Therefore, before choosing an agent, make sure to pick a realtor as your Canadian real estate agent.

How Much Do Real Estate Agents Make in Canada?

What do Realtors Cover in Their Fees

If you hire an experienced realtor, then he or she can offer a lot more than just the basic service of selling your property or helping in buying one. Here are some things that they will help you with:

    • Guide you about the pre-sale renovations and changes.
    • Will provide good marketing services.
    • A strategically successful pricing plan.
    • Managing the negotiations with the seller or the buyer on your behalf.
    • Having a good experience and knowledge about the area you want to sell or buy the house.

Therefore, we can say that a realtor makes your money work hard in your favour in every aspect. The Realtor’s work is to potentially sell your home at the price you are asking for. According to some reports, in 2021, realtors assisted people in selling their homes for a medium price (99% percent of the final price).

What are The Realtor Fees and Commission in Canada? 

how much are realtor fees in canada

It is always important to know what your realtor fees are. Therefore, it is better for you to understand how Canadian real estate agents pay to process work. The commissions of realtors vary between 3% and 7% of the total sale price in Canada. But there is a non-fixed charge or fee. According to the Canada Real Estate Association, realtors must follow the Standard conduct. The Standard Conduct states that “commission rates of real estate services and division of fees among the members is exclusively the preference of the person providing the services”.

Here is a list of several ways to calculate the realtor commission or real estate agents fees in Canada:

  • Fixed percentage of sale price – It is the popular and most common type of commission. In this, a fixed percentage is decided over the selling price of the property.
  • Split Percentage of the Sale Price – In this type of flat fee realtor, the rise in selling prices leads to a decrease in percentage. For example –  the flat fee realtor in the form of the commission are 2.5% on the first $500,000 and 2% for the rest. Another example is that in Ontario, the percentage cannot be increased above the fixed price. The deal is either fixed or declined.
  • Flat Fee – Charges paid are similar for every seller. For example – even if you sell a home worth $300,000 or $3 million, the charges will be the same.
  • Service Fee – A fee paid for the marketing and listing of your property, open houses, and printing brochures.
  • Mixed fees – You might have to pay a flat fee and some additional fees for different services to your Canadian real estate agents.

But remember,  the commission of a Canadian real estate realtor is not the only expense for a seller. However, there are several other hidden charges applicable to the buyer’s side as well. 

Is The Real Estate Agent’s Fee Negotiable?

It is quite a good idea to discuss with your real estate agent whether they are flexible with their commission or not. But, you have to be practical as no realtor will work for free. The real estate agents fees in Canada is divided into different amounts and given to other people. However, not all agents will negotiate, but there is no harm in trying.

Many realtors have a fixed commission on the sale price. If you hire a traditional Canadian real estate agent, then the brokerage will be a fixed percentage of the total value of the sold property. You can, however, ask to reduce a few services like home staging or marketing campaigns. These small steps will help in reducing the overall costs. 

Some of the real estate agents may charge you a flat fee as well. And, to get the best deal, you can talk to different realtors. Also, you must make sure that your realtor brings more than just your money. 

Does Low Commission or Discount Save You Money?

Realtor Fees in Canada - Does Low Commission or Discount Save you Money

It seems that you can save a lot of money on the commission with discounts or low commissions, but things aren’t always what they are. According to some experts, agents who ask for a full-fledged commission are quite knowledgeable and experienced in their field compared to bargaining agents.

Another factor is that a top Canadian real estate agent sells a home for more money than other realtors. And, without any top-class realtor working for you, you have to struggle a lot.

Just don’t look for discounts or low commissions. Make sure that your real estate agent has a better track record, good experience and quite a good knowledge of the neighbourhood.

Who Pays The Real Estate Commission?

The real estate agent commission is usually paid by the seller of the property. After the property is listed for sale, the seller decides the gross commission they are ready to pay and the proportion in which it will be split between the seller agents and the buyer. After the transaction is executed, the commission is paid out by the seller’s lawyers. 

Generally, the seller covers the commission for both agents. There might also be instances when the buyer has to pay their agent the commission or difference. However, it is only seen in the rarest cases; when the seller decides not to give the fixed price real estate agents commission or list the property themselves. If the seller is intending to sell the property without paying the buyer agent commission, real estate agents will let you know in advance. 

Comparison of Real Estate Commission Across Provinces

Have a look at the table below to understand the fixed price real estate agent fees in different provinces of Canada. 

Province Typical Real Estate Commission Rate Average Sold Prices of Homes in September 2020 Average Total commission Paid to Both Agents
Alberta 7% for first $100K and 3% on remaining amount $403,163 $16,095
Ontario 5% of the entire amount $741,395 $37,070
B.C. (Greater Vancouver Area) 7% for first $100K and 2.5% on remaining amount $801,039 $24,526
Saskatchewan 6% for first $100K, 4% for the second $100K, and 2% on the remaining amount $403,163 $16,095
Manitoba 5% of total amount $308,689 $15,434
Quebec 5% of total amount $477,609 $23,880
Nova Scotia Flat fee of $1,500 for properties under $25,000, and 5% of total amount for any other kind of properties $319,726 $15,986
New Brunswick 5% of total amount $203,907 $10,195
Prince Edward Island 5% of total amount $300,538 $15,778
Newfoundland and Labrador 5% of total amount $249,368 $13,091

British Columbia and Ontario are known to have the highest prices for housing, resulting in a higher average of the total real estate commissions. Albeit, the fixed price estate agent fees of British Columbia are one of the lowest in Canada, homeowners ultimately pay a starkly higher real estate commission. This happens because of the higher average selling prices of homes. 


Above discussed factors are not enough, and there is a lot more than what it looks like. Real estate agents’ charges or real estate agents fees in Canada depend on varying factors. An important factor is to make sure to negotiate with your real estate agent. One more piece of advice is to do a thorough research before finalising a Canadian Real Estate agent. We hope that this guide will assist you in choosing the top real estate agent for you in Canada. 

You May Also Read :

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Frequently Asked Question (FAQs)

What are realtor's fees included in closing costs?

The realtor's fees are always in the form of commission. The realtor fees or commissions vary between 3% to 7% of the definitive purchase price.

How much does it cost to hire a realtor?

There is no cost to hire a realtor until you are selling your house. As a seller, you have to give around 3% to 7% of the total amount received by you from the buyer after selling your house.

Who pays realtor fees for rentals?

The fees for rentals depend on the location and the property you are planning to live in. Sometimes you have to pay the fee of a realtor, or sometimes, the landlord pays the fee to the realtor for filing a rental.

Do first-time buyers pay 5% deposits?

The Government of Canada helps first-time homebuyers by providing 5% of the purchase price. And for newly constructed houses, it is 5% to 10%.

How much deposit do I need to buy a house in 2022?

You have to deposit 5% if the total house value is under $500,000. For a house valuing between $500,000 – $999,999, you have to make a deposit of 5% of the first $500,000, then 10% of the remaining amount. And, for a house with a value of $1 Million or more, you have to deposit 20% as a down payment.

Will I get more profit If I sell my property without any realtor?

No, you won't get more profit if you sell your property without the help of real estate agents.

Can I save with a flat-fee commission?

Since similar percentage-based commissions are cheaper than flat-fee commissions, they might appear to be an excellent way of saving money. However, the quantity and quality of services provided by flat fee realtor are not up to the mark. You might have to indulge in marketing the home yourself.