Ontario Home Intel

Category: Selling

  • What Does It Cost to Sell a House in Ontario? 2026 Guide

    What Does It Cost to Sell a House in Ontario? 2026 Guide

    Ontario Selling Guide

    Selling a home for $700,000 does not mean the seller walks away with $700,000. Mortgage payouts, real estate remuneration, legal expenses, preparation costs and other adjustments can all reduce the amount available after closing.

    Updated for 2026. This guide explains the major costs Ontario homeowners should consider when estimating the net proceeds from a sale.

    Try the Seller Net Proceeds Calculator
    Ontario Selling Guides

    The Short Answer

    The cost of selling an Ontario home varies significantly from one transaction to another. Common expenses can include real estate brokerage remuneration, legal fees, mortgage discharge costs, mortgage prepayment charges, repairs, cleaning, staging, moving expenses and adjustments on closing.

    The most useful number for a seller is usually not the sale price itself. It is the estimated net proceeds remaining after the mortgage and selling expenses are accounted for.

    1. Real Estate Brokerage Remuneration

    For sellers who use a real estate brokerage, remuneration can be one of the larger transaction expenses.

    There is no government-set or RECO-set standard commission rate in Ontario. The amount and method of calculating remuneration are established in the representation agreement between the seller and brokerage.

    An agreement may use a fixed dollar amount, a percentage of the sale price, or a combination of the two. The agreement should also explain amounts the seller may agree to provide toward a buyer’s brokerage fees and circumstances in which remuneration may change.

    Applicable taxes should also be considered when determining the actual cost under the agreement.

    Read the RECO Information Guide for current information about representation and remuneration in Ontario.

    2. Mortgage Payout

    If there is a mortgage registered against the property, it will normally need to be paid out or otherwise dealt with as part of closing.

    The mortgage balance is not technically a selling expense in the same way as a legal fee, but it has a major impact on how much money the seller receives after closing.

    For example, a seller with a $700,000 sale price and a $400,000 mortgage does not begin the net-proceeds calculation with $700,000 available in cash. The mortgage payout must first be accounted for.

    3. Mortgage Prepayment Charges

    Selling before the end of a mortgage term can sometimes trigger a prepayment charge.

    The amount depends on the mortgage contract, lender, interest rate, remaining term and whether the mortgage is open or closed. These charges can sometimes amount to thousands of dollars.

    Ask the lender for a current payout statement or prepayment estimate before relying on an estimated net-proceeds figure.

    Learn about mortgage prepayment charges from the Financial Consumer Agency of Canada.

    4. Mortgage Discharge Costs

    When a mortgage is paid out, the lender’s registered interest generally needs to be discharged from title.

    A lender may charge a mortgage discharge or administration fee. The amount varies depending on the lender and circumstances.

    Your lawyer will normally coordinate the payout and discharge as part of the closing process.

    5. Legal Fees and Disbursements

    Ontario sellers generally use a lawyer to complete the legal side of the transaction.

    The lawyer may handle matters such as reviewing closing documents, responding to title requisitions, preparing the statement of adjustments, receiving sale proceeds, paying out registered mortgages and transferring the remaining funds to the seller.

    Legal costs vary by firm and transaction complexity, so obtain a quote rather than relying on a generic estimate.

    6. Repairs and Pre-Listing Preparation

    Not every seller needs to renovate before listing. However, some properties benefit from targeted preparation.

    • Minor repairs
    • Paint touch-ups
    • Cleaning
    • Landscaping
    • Decluttering
    • Storage
    • Staging
    • Waste removal

    The appropriate level of preparation depends on the property, target buyer, market conditions and expected return from the work.

    7. Moving Costs

    Moving costs are easy to overlook because they occur outside the real estate closing itself.

    Depending on the move, sellers may need to budget for movers, truck rental, packing materials, temporary storage, utility changes, cleaning or temporary accommodation.

    8. Property Tax and Utility Adjustments

    The statement of adjustments prepared for closing may account for certain expenses that have already been paid or remain owing.

    Property taxes are a common example. If the seller has prepaid taxes covering a period after closing, an adjustment may credit the seller. If taxes remain owing for the seller’s period of ownership, the adjustment may work in the opposite direction.

    How to Estimate Seller Net Proceeds

    A simplified planning calculation looks like this:

    Sale Price − Mortgage Payout − Selling Costs ± Closing Adjustments = Estimated Net Proceeds

    This is only a planning formula. A lawyer’s final statement of adjustments and payout information will determine the actual amount available on closing.

    Run Your Own Estimate

    Enter the expected sale price, mortgage balance, remuneration and other estimated selling expenses into the Ontario Home Intel Seller Net Proceeds Calculator.

    Seller Net Proceeds Calculator

    Questions Sellers Should Ask Before Listing

    • What is my current mortgage payout amount?
    • Would a prepayment charge apply if I sold now?
    • What remuneration and services are set out in the representation agreement?
    • What legal fees and disbursements should I expect?
    • Which repairs or improvements are actually worth completing?
    • Are there liens, lines of credit or other registrations on title?
    • What amount do I need to net from the sale?

    FAQ

    Ontario Home-Selling Cost Questions

    Is there a standard real estate commission in Ontario?

    No. Real estate remuneration is not fixed or approved by RECO, the government, a real estate board or an association. The amount and method of calculating remuneration are agreed between the consumer and brokerage.

    Do I have to pay off my mortgage when I sell?

    A mortgage registered against the property generally needs to be discharged or otherwise appropriately dealt with on closing. Your lawyer and lender can explain the payout and discharge process for your mortgage.

    Can selling a house trigger a mortgage penalty?

    Yes. Paying out certain mortgages before the end of the term can result in a prepayment charge. The amount depends on the mortgage contract and lender.

    How much money will I actually receive after selling?

    Your net proceeds depend on the final sale price, mortgage payout, agreed remuneration, legal expenses, other selling costs and closing adjustments.

    Continue Your Research

    Selling in Ontario
    Seller Net Proceeds Calculator
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    General information only: This article is provided for general educational purposes and is not intended as real estate, legal, financial, tax, lending, accounting or other professional advice. Selling costs vary by transaction, agreement, lender, property and service provider. Obtain property-specific estimates before making a decision.

  • Basement Apartment Ontario

    Basement Apartment Ontario

    Ontario Homeowner Guide

    Can You Have a Basement Apartment in Ontario?

    Ontario allows additional residential units on many residential properties, but turning a basement into an apartment involves more than adding a kitchen and bathroom. Zoning, building permits, fire and life-safety requirements, municipal rules and the individual property all matter.

    Check Municipal Rules
    Zoning & Permits
    Can you have a basement apartment in Ontario? 2026 guide to basement apartment rules, permits and zoning.

    Quick answer: Yes. Basement apartments can be permitted in Ontario, and provincial planning rules allow additional residential units on many qualifying properties. However, an individual basement apartment still needs to comply with applicable zoning, building-permit, Building Code and other legal requirements. An existing basement apartment should not automatically be assumed to be legal simply because it is currently occupied or has existed for many years.

    What Is a Basement Apartment?

    A basement apartment is generally a separate residential unit located wholly or partly in the basement of a house.

    Depending on the municipality and applicable legislation, you may also see terms such as:

    • Additional residential unit (ARU)
    • Additional dwelling unit (ADU)
    • Secondary suite
    • Second unit
    • Accessory apartment
    • Basement suite
    • In-law suite

    The terminology can differ, but the important issue is whether the space constitutes a separate residential unit and whether it complies with the requirements that apply to the property.

    How Many Units Can You Have in an Ontario House?

    Ontario’s additional residential unit framework generally provides as-of-right permission for up to three residential units on qualifying urban residential land.

    For a qualifying detached house, semi-detached house or rowhouse, the provincial framework generally contemplates configurations such as:

    • Three residential units within the main house; or
    • Up to two residential units in the main house plus one residential unit in an ancillary building or structure.

    A basement apartment could therefore be one of the residential units within the main house.

    Some municipalities have gone further and permit additional units or different configurations in certain circumstances. This is why the municipality and individual property still need to be checked.

    Browse Ontario Municipal Guides

    What Makes a Basement Apartment Legal in Ontario?

    There isn’t one single province-wide checklist that makes every basement apartment legal. Several layers of regulation can apply.

    1. Zoning

    The property must comply with applicable planning and zoning requirements. Ontario’s Planning Act provides significant protection for additional residential units, but municipalities still administer zoning and property-specific development standards.

    Depending on the property, relevant considerations can include parking, entrances, setbacks, servicing and other local requirements.

    2. Building Permit

    Creating a new basement apartment generally requires a building permit from the local municipality.

    The permit process allows the municipality to review the proposed construction for compliance with applicable building requirements and other applicable law.

    3. Building Code Requirements

    The unit must meet the applicable Ontario Building Code requirements. Depending on the project and building, this can involve matters such as:

    • Ceiling height
    • Exits and means of egress
    • Windows
    • Fire separations
    • Smoke alarms
    • Carbon monoxide alarms
    • Heating and ventilation
    • Plumbing
    • Electrical systems
    • Structural changes
    • Sound transmission

    4. Electrical Work

    Electrical work is regulated separately from the municipal building-permit process. Electrical alterations should be completed and inspected as required under Ontario’s electrical-safety framework.

    5. Municipal Registration or Licensing

    Some municipalities require additional residential units or certain rental properties to be registered or licensed. Others use different local processes.

    This is one reason a homeowner should check the specific municipality rather than relying only on general Ontario information.

    Existing Does Not Automatically Mean Legal

    One of the most important things for Ontario home buyers to understand is that the physical existence of a basement apartment does not, by itself, prove that the unit is legal.

    A listing might describe a property as having a basement apartment, second kitchen, in-law suite or separate entrance. Those features do not necessarily establish that the space was legally created or approved as a separate dwelling unit.

    If the basement unit is important to your purchase, investigate its status rather than relying on the description alone.

    Buying a House With a Basement Apartment

    A basement apartment can make a property more attractive to a buyer who wants rental income, multigenerational living space or additional flexibility. But the status of the unit should be investigated during the purchase process.

    Questions Worth Asking

    • Was a building permit obtained for the basement apartment?
    • Were the required inspections completed?
    • Was final occupancy or other required approval obtained?
    • Does the municipality have records for the unit?
    • Does the current zoning permit the configuration?
    • Is municipal registration or licensing required?
    • Were electrical alterations properly inspected?
    • Are there current tenants?
    • What tenancy documentation exists?
    • Is the buyer relying on the rental income to qualify for financing?

    The appropriate investigation depends on the individual property and transaction. A buyer may need information from the municipality and advice from their real estate representative, lawyer, lender, insurer, home inspector or other appropriate professional.

    Ontario Home Buying Guide
    Contact a REALTOR®

    Can You Convert an Existing Basement Into an Apartment?

    Potentially. The first step should be determining whether the proposed unit can comply with the requirements applicable to the property.

    Before spending significant money on construction, contact the municipality’s planning and building departments and determine what approvals are required.

    A Typical Process May Include:

    1. Review the property’s zoning.
    2. Check municipal ARU requirements.
    3. Assess whether the basement can meet Building Code requirements.
    4. Prepare drawings.
    5. Apply for the required building permit.
    6. Complete construction.
    7. Arrange required inspections.
    8. Complete any municipal registration or licensing process that applies.

    Do not assume that completing the construction first and obtaining approval later will be easier. Unpermitted work can create additional cost and complications.

    Ontario Renovation Guide
    Zoning & Permit Guide

    Do You Need a Separate Entrance?

    A separate exterior entrance is common for basement apartments, but whether a particular entrance arrangement complies depends on the design of the unit and the applicable building and zoning requirements.

    Adding a new basement entrance can itself require a building permit and may involve structural work, grading, drainage, setbacks or other municipal requirements.

    Do not cut a new basement entrance into a foundation based solely on the assumption that a separate entrance is allowed.

    Do You Need Extra Parking?

    Parking requirements need to be checked against the rules that apply to the property.

    Ontario’s ARU framework limits certain municipal parking requirements associated with provincially protected additional residential units and permits tandem parking in applicable circumstances.

    However, the exact parking situation can still differ by property and municipality. Do not assume that adding an apartment automatically requires a new driveway space—or that no additional parking consideration applies.

    Basement Apartment Rules Vary by Municipality

    This is where Ontario basement-apartment research becomes property-specific.

    Provincial legislation establishes broad additional-unit permissions, while municipalities administer zoning, building permits and various local requirements. Some municipalities also permit more units than the basic provincial framework in certain circumstances.

    Ontario Home Intel maintains municipal property guides covering local zoning, permits, ARUs and related property rules.

    Niagara & Hamilton

    Niagara Falls
    St. Catharines
    Welland
    Hamilton

    Halton & Peel

    Burlington
    Oakville
    Milton
    Halton Hills
    Mississauga
    Brampton

    Toronto & York

    Toronto
    Vaughan
    Markham
    Richmond Hill

    View All Municipal Property Guides

    Thinking About Buying a Home With Rental Potential?

    A basement apartment can affect a property’s income potential, financing, insurance, future renovations and resale. If the unit matters to your purchase decision, investigate its status before relying on it.

    Contact a REALTOR®
    Home Affordability Calculator

    Frequently Asked Questions

    Are basement apartments legal in Ontario?

    Yes, basement apartments can be legal in Ontario. Provincial planning legislation protects additional residential units on many qualifying properties, but the individual apartment must still comply with applicable zoning, building, permit and other legal requirements.

    Do I need a building permit for a basement apartment?

    Creating a new second unit in a house generally requires a building permit from the local municipality. The municipality will identify the documents, plans and inspections required for the project.

    Is an existing basement apartment automatically legal?

    No. The fact that a basement apartment exists or is currently rented does not by itself prove that the unit was legally established or complies with applicable requirements.

    Can I rent out my basement in Ontario?

    A legal residential unit can generally be rented subject to the laws and requirements that apply to the property and tenancy. Municipal licensing or registration may also apply in some municipalities.

    Can a basement apartment have its own kitchen?

    A self-contained additional residential unit commonly has its own kitchen, bathroom and living or sleeping areas. The construction and installation of these facilities must comply with applicable building, plumbing, electrical and other requirements.

    Can I add a basement apartment without changing the zoning?

    Ontario’s additional residential unit framework provides as-of-right permissions on many qualifying properties, meaning a rezoning may not be required simply to permit the residential use. However, the individual property still needs to comply with applicable requirements, and a minor variance or other approval could be necessary depending on the proposed work.

    How do I check whether a basement apartment is legal?

    Start with the municipality. Ask about zoning, building permits, inspections and any registration or licensing records that apply to the property. Depending on the situation, additional professional review may also be appropriate.

    Official Ontario Resources

    Last reviewed: September 6, 2026.

    Disclaimer: Ontario Home Intel provides general educational information only. This article is not intended as real estate, legal, financial, tax, lending, appraisal, inspection, engineering, building-code, planning or other professional advice. Provincial legislation, municipal zoning, building requirements and property-specific circumstances can change or differ. Verify information with the applicable municipality and other appropriate authorities or professionals before making a decision. Using this website or making an inquiry does not create a real estate representation relationship.