Yes. Real estate commission in Ontario is fully negotiable. No law or industry body sets a standard rate, and the Real Estate Council of Ontario (RECO) requires brokerages to make clear that their fees are open to negotiation before you sign anything.
Most sellers in Toronto still encounter a familiar starting point. The common structure is a total commission of around 5% of the sale price, split between the listing brokerage and the brokerage representing the buyer, with 13% HST added on top. Some sellers negotiate the total down to 4% or 3.5%, particularly at higher price points where the dollar amounts get large. Others pay less by working with a brokerage that offers a reduced service model. Every one of those numbers is a market convention, not a rule.
What the rules actually say
Under the Trust in Real Estate Services Act (TRESA), the provincial legislation RECO enforces, commission can be a percentage of the sale price, a flat fee, or a combination of the two. It cannot be calculated on a sliding scale that rises as the price climbs, and it cannot be based on the difference between your listing price and the final sale price. Whatever you and your agent agree to must be written into the listing agreement before it binds either side. Since TRESA's updated rules took effect in December 2023, the seller also decides what commission, if any, to offer the buyer's brokerage.
What to weigh before negotiating hard
Commission funds more than an agent's time. It typically covers photography, staging advice, marketing, and the buyer-side commission that motivates other agents to bring their clients through your door. A sharply reduced rate can mean a thinner marketing budget or a lower buyer-side offering, and either one can shrink your pool of showings. The useful question is not how low the number can go. It is what you receive in exchange for it.
Commission comes out of your sale proceeds on closing, alongside legal fees and the other costs of selling a house in Toronto. Before you sit down to negotiate, it also helps to understand how real estate agents get paid in Ontario, because the listing agent usually shares the total with a cooperating brokerage rather than keeping it all.
Related reading: How Do Real Estate Agents Get Paid in Ontario?, How Much Does It Cost to Sell a House in Toronto?, and What Is a Listing Agreement in Ontario?.
