1. What is the Ontario Realtor Commission Structure?

The Ontario standard real estate commission follows a tiered structure where the first $100,000 of the sale price is charged at 5%, and any amount above $100,000 is charged at 2.5%. This is the typical commission split used by most real estate brokers in Ontario.

2. How Does the Calculator Work?

The calculator uses the Ontario standard commission formula:

Where:

• \( First \$100k \) — The first $100,000 of the sale price
• \( Balance \) — Any amount above $100,000
• \( 5\% \) — Commission rate for the first $100,000
• \( 2.5\% \) — Commission rate for the balance amount

Explanation: This tiered structure provides a fair commission model that benefits both sellers and real estate professionals across different price ranges.

3. Understanding Commission Splits

Details: The calculated commission is typically split between the listing brokerage and the buying brokerage, with each agent receiving a portion. Additional splits may occur within brokerages between the broker and their agents.

4. Using the Calculator

Tips: Enter the sale price in Canadian dollars. The calculator will automatically apply the Ontario standard commission structure. All values must be valid (sale price > 0).

5. Frequently Asked Questions (FAQ)

Q1: Is this commission structure mandatory in Ontario?
A: No, commission rates are negotiable between the seller and the real estate brokerage. This represents the typical standard structure used by most brokers.

Q2: Does this include HST?
A: No, the calculated amount is before HST. HST of 13% would be added to the commission amount in Ontario.

Q3: How is the commission split between brokerages?
A: Typically, the total commission is split 50/50 between the listing brokerage and the buying brokerage, though this can vary.

Q4: Are there different commission structures for different price ranges?
A: Some brokerages may offer different structures for luxury properties or specific market conditions, but this 5%/2.5% split is the most common.

Q5: Can I negotiate a lower commission rate?
A: Yes, commission rates are always negotiable. Discuss your options with potential listing agents before signing a representation agreement.