The short answer
Your estimated net proceeds are the amount left from the sale price after the mortgage payout, selling costs and closing adjustments are taken into account. Most selling costs aren't fixed amounts: they're set by your agreements, your lender and the quotes you accept. The dependable way to know your own figure is to get each cost in writing before you list.
How net proceeds are worked out
Every sale comes down to three parts.
| Part | What it means |
|---|---|
| 1. Sale price | What the buyer pays under your agreement of purchase and sale. |
| 2. Selling costs and payouts | Your mortgage payout and the costs of selling. Most are paid out of the sale funds on closing; some, such as repairs, are paid before you list. |
| 3. Net proceeds | The sale price minus part 2, plus or minus adjustments on closing. |
On closing, the sale funds usually go through your lawyer's office. Your lawyer pays out the mortgage and the other amounts you've agreed to, and then pays you the balance. Your lawyer's statement of adjustments and final accounting show each amount.
The costs, one by one
Not every cost applies to every sale. For each one, the facts underneath say when it applies, how the amount is set, and who can give you the exact figure.
Compensation for real estate services
The compensation you agree to pay for real estate services is set out in your service agreement with the brokerage. The amount and structure can vary depending on the services provided and the agreement you enter into. Review the agreement carefully so you understand what is included and what additional charges, if any, may apply.
- When it applies
- When you sell with a brokerage.
- How the amount is set
- Set out in your service agreement with the brokerage.
- Where to get your exact figure
- Your service agreement, before you sign it.
An amount toward the buyer's brokerage fees
The Real Estate Council of Ontario (RECO) explains that a seller's agreement needs to clearly indicate the amount, if any, the seller agrees to pay to compensate the buyer for their brokerage fees, or how that amount will be calculated. RECO also notes that the amount you pay for services is decided between you and the brokerage, and isn't fixed or approved by RECO, any government authority, or any real estate association or board. Ask how this works in your agreement before you sign.
- When it applies
- If you agree to pay an amount toward the buyer's brokerage fees.
- How the amount is set
- Stated in your agreement, as an amount or how it will be calculated.
- Where to get your exact figure
- Your service agreement.
Source: Real Estate Council of Ontario (opens in a new tab), RECO Information Guide: Working with a real estate agent (December 1, 2023)
HST on compensation
HST applies to taxable real estate services in Ontario. It's a tax on the brokerage's services, not part of the compensation itself, so check whether the amounts in your agreement include or exclude it.
This is separate from the tax treatment of the home itself. In many typical resale-home transactions, HST is not added to the sale price of the home. Different rules can apply in some circumstances, so ask your accountant or lawyer if you're unsure about your property.
- When it applies
- When the brokerage is registered for GST/HST.
- How the amount is set
- In Ontario, HST is 13% of the taxable amount.
- Where to get your exact figure
- Your service agreement and the brokerage's invoice.
Sources: Canada Revenue Agency (opens in a new tab), GST/HST calculator (and rates) (April 1, 2025); Canada Revenue Agency (opens in a new tab), GST/HST in special cases: Real estate agents (services) (June 18, 2026); Canada Revenue Agency (opens in a new tab), GI-004, Sales by Individuals of Owner-Occupied Homes (January 20, 2025)
Your lawyer's fees and disbursements
Your lawyer handles the legal work required to complete the sale. Legal fees vary by lawyer and by the work involved in your transaction. You may also pay disbursements—expenses the lawyer incurs on your behalf.
Ask the lawyer you choose for a written quote that explains the legal fee and anticipated disbursements.
- When it applies
- When a lawyer acts for you on the sale.
- How the amount is set
- Set by the lawyer you choose, based on the work involved in your transaction.
- Where to get your exact figure
- A written quote from the lawyer you choose, covering the legal fee and anticipated disbursements.
Mortgage payout and discharge
Your mortgage is repaid out of the sale funds on closing. Your lawyer asks your lender for a payout statement, which shows the amount needed to pay it off on the closing date. Some lenders also charge a fee to discharge (remove) the mortgage from the title.
- When it applies
- When you have a mortgage or other loan registered on the home.
- How the amount is set
- Your remaining balance on the closing date, plus any fees your lender charges.
- Where to get your exact figure
- Your lender's payout statement.
Source: Financial Consumer Agency of Canada (opens in a new tab), Breaking your mortgage contract (October 15, 2025)
Mortgage prepayment penalty
If you break your mortgage before the end of its term, your lender may charge a prepayment penalty. The Financial Consumer Agency of Canada explains that the penalty is often the higher of three months' interest or the interest rate differential (IRD). The method your lender uses is set out in your mortgage contract, and it depends on things like your mortgage type and how much of the term is left.
Other charges may apply too, such as an administration fee, or repaying any cash back you received when you took out the mortgage. Some mortgages can be moved to a new home (called porting), which may reduce or avoid a penalty. Ask your lender for the penalty figure in writing, and ask whether porting is an option.
- When it applies
- When you pay off your mortgage before the end of its term.
- How the amount is set
- Calculated by your lender, using the method in your mortgage contract.
- Where to get your exact figure
- A written penalty figure from your lender.
Sources: Financial Consumer Agency of Canada (opens in a new tab), Mortgage fees: Prepayment penalties (October 15, 2025); Financial Consumer Agency of Canada (opens in a new tab), Breaking your mortgage contract (October 15, 2025)
Preparation, repairs, cleaning and staging
These costs are usually paid before you list, not on closing. What you spend is a decision: some work may help the home show well, and some may not be worth doing. Get written quotes before you commit, and keep the receipts.
- When it applies
- When you choose to prepare the home before listing.
- How the amount is set
- Your choice. It depends on the work and the providers.
- Where to get your exact figure
- Written quotes from contractors and service providers.
Moving
Moving costs can include movers, packing materials, storage and time off work. If your closing dates for selling and buying don't line up, you may need storage or a short-term place to stay as well.
- When it applies
- When you move out.
- How the amount is set
- Depends on how much you're moving, how far, and when.
- Where to get your exact figure
- Written quotes from moving companies.
Carrying costs while you sell
Until closing, you still pay the costs of owning the home: mortgage payments, property tax, utilities and insurance. If you buy your next home before this one closes, you may carry two homes for a time. How long that lasts depends on your home, your price and the market when you sell.
- When it applies
- From the time you list until closing.
- How the amount is set
- Your usual costs of owning the home, for as long as you own it.
- Where to get your exact figure
- Your own bills and statements.
Bridge financing
Bridge financing is a short-term loan that covers the gap between buying one home and receiving the money from selling another. Whether it's available, and what it costs, depends on the lender and your situation. Ask your lender before you commit to closing dates.
- When it applies
- When you buy your next home before this one closes and need the money from this sale.
- How the amount is set
- Set by the lender that provides it.
- Where to get your exact figure
- Your lender.
Adjustments on closing
Some costs are shared between you and the buyer according to the closing date. For example, if you've already paid the property tax for a period after closing, the buyer usually credits you for that part. If an amount for the time you owned the home is still unpaid, you usually credit the buyer. These adjustments can increase or reduce your net proceeds.
- When it applies
- On most sales.
- How the amount is set
- Depends on what you've prepaid or still owe on the closing date.
- Where to get your exact figure
- Your lawyer's statement of adjustments.
Condominium status certificate
A status certificate describes the condominium corporation's finances, rules and other matters a buyer will want to review. The Condominium Authority of Ontario explains that anyone can request one, and that the corporation must provide it within 10 days of receiving the request and fee. Faster service may carry an extra rush fee.
- When it applies
- When you're selling a condominium unit and a status certificate is requested.
- How the amount is set
- The condominium corporation can charge up to $100, including taxes and materials.
- Where to get your exact figure
- The condominium corporation or its manager.
Source: Condominium Authority of Ontario (opens in a new tab), What is a status certificate and how much does it cost?
Tax on the sale
How a sale is taxed can depend on whether, and for how long, the property qualified as your principal residence. If it was your principal residence for every year you owned it, you generally don't pay tax on the gain, although you still report the sale.
A rental property, a cottage or other circumstances may be treated differently. The Canada Revenue Agency explains the rules, and a qualified tax professional can tell you what applies to your situation.
- When it applies
- Depends on how you used the property.
- How the amount is set
- Depends on your tax situation.
- Where to get your exact figure
- The Canada Revenue Agency, or a qualified tax professional.
Source: Canada Revenue Agency (opens in a new tab), Reporting the sale of your principal residence for individuals (other than trusts) (June 26, 2021)
If you're not a resident of Canada
Selling Canadian real estate as a non-resident involves special tax requirements that can affect both the seller and the buyer. If this applies to you, speak with your lawyer and a qualified tax professional early—ideally before entering into an agreement of purchase and sale.
- When it applies
- When the seller is a non-resident of Canada for tax purposes.
- How the amount is set
- Depends on the tax rules and the seller's circumstances.
- Where to get your exact figure
- Your lawyer and qualified tax professional.
Source: Canada Revenue Agency (opens in a new tab), Disposing of or acquiring certain Canadian property (June 27, 2023)
Put your own figures together
This worksheet shows how the pieces fit together. Every line is for your own figure: start with the sale price you want to work with, then add the figures from your own agreements, statements and quotes.
| Item and where the figure comes from | Amount |
|---|---|
| Sale priceThe sale price you choose to work with | Your figure |
| Minus compensation for real estate servicesYour service agreement | Your figure |
| Minus HST on compensation13% of the taxable amount in Ontario | Your figure |
| Minus mortgage payoutYour lender's payout statement | Your figure |
| Minus prepayment penalty and discharge feeYour lender, in writing | Your figure |
| Minus legal fees and disbursementsYour lawyer's written quote | Your figure |
| Minus preparation and movingYour quotes and receipts | Your figure |
| Plus or minus adjustments on closingYour lawyer's statement of adjustments | Your figure |
| Estimated net proceeds | Your figure |
To have the arithmetic done for you, enter your own figures in the Net Proceeds Calculator.
Get these figures in writing before you list
- Your service agreement: the compensation, what's included, whether HST is included, and any additional charges.
- Your lender: the payout amount, any prepayment penalty, the discharge fee, and whether you can port the mortgage.
- Your lawyer: a written quote for fees and disbursements.
- Contractors and movers: written quotes for any work and the move.
- A qualified tax professional: if the home wasn't your principal residence for every year you owned it, or if you're not a resident of Canada.
Related
- Selling a home in London, explainedAn overview of selling, from first questions to closing.
- The selling processThe steps of a sale, in order, and where they can vary.
- Preparing your home to sellWhat to prepare, and what may not be worth doing.