What you need to know
Budget for 2% combined commission plus GST, legal costs, lender charges, preparation, moving and adjustments. Subtract the mortgage payout separately to estimate the equity you can take to your next home.
Start with the costs that affect your equity.
A useful selling budget separates transaction expenses from the mortgage debt you are paying off. Both reduce the cheque you receive, but a mortgage balance is money already borrowed, not a selling fee.
Include commission and GST, the lawyer’s quote, lender charges, preparation, moving and closing adjustments. Ask about each item early; an unexpected mortgage penalty can matter far more than a small decorating decision.Financial Consumer Agency of Canada: selling a home
A worked $700,000 home-sale example.
| Budget line | Example amount |
|---|---|
| Selling price | $700,000 |
| 2% combined commission | −$14,000 |
| GST on commission | −$700 |
| Mortgage payout balance | −$400,000 |
| Legal costs, assumed inclusive total | −$1,800 |
| Lender charges, assumed total | −$3,000 |
| Preparation and moving, assumed total | −$3,500 |
| Estimated money remaining | $277,000 |
This example uses an assumed mortgage balance and assumed all-in expense allowances, not supplier quotes. It excludes property-tax adjustments and any other property-specific charges. Replace every allowance with your lender’s and lawyer’s numbers.
Using the 7%/3% commission comparison instead would cost $26,250 including GST. With the other example amounts unchanged, the remainder would be $265,450. Don’s fee leaves $11,550 more in this example.
Ask the lender before choosing a possession date.
Request a payout statement for a realistic closing date. Confirm the outstanding balance, accrued interest, discharge or administration fees, and any early-payment charge. If you are buying again, ask whether porting is available and what timing or property requirements apply.
Breaking a closed mortgage can trigger a prepayment charge. The amount depends on your contract; it should not be guessed from a friend’s experience or a generic percentage. Have the lender price the choices before you commit to dates.FCAC: breaking your mortgage contract
Get one complete quote from your lawyer.
Tell the lawyer the sale price, property type, mortgage details, registered debts and intended possession date. Ask for professional fees, disbursements, GST and any expected extra work as separate lines. If you are buying as well, request a separate purchase estimate.
The lawyer can explain property-tax adjustments and the documents needed to transfer title. Confirm whether an existing real property report is suitable for your transaction, whether updates are needed, or whether another agreed solution applies. Do this before the last week of closing.
Spend on preparation with a clear purpose.
Start with repairs buyers will see or ask about: leaks, damaged finishes, poorly operating doors, burnt-out bulbs, dirty windows and neglected landscaping. Obtain quotes for larger work. A fresh kitchen is expensive; a clean, bright and well-documented existing kitchen may be a better use of your time.
Make three lists: work to complete, facts to document and improvements to leave to the next owner. Don can compare your home with competing listings and help decide which tasks support the selling price. Keep receipts, warranties and permit records together.
Use the sale proceeds to plan your next move.
Your available equity must cover the next deposit and down payment, purchase closing costs, moving and a cash reserve. If the purchase closes first, ask your lender and lawyer how bridge financing and the timing of sale funds would work.
Don has sold 650+ Calgary-area homes with a full-service 2% commission model. Request a free home evaluation to connect your likely sale price with the costs in this worksheet, then discuss the moving dates that suit your household.
Your questions, answered.
Is the mortgage payout part of the cost to sell?
It reduces the proceeds you receive, but separate the outstanding debt from the lender’s fees or early-payment charge in your budget.
Do I pay GST on the whole selling price?
The worked example applies GST to commission, not to the price of the home. Tax treatment can differ for new construction, business property and other circumstances; ask your lawyer about your transaction.
Sources and further reading
Research checked September 26, 2026. Market figures below use the periods identified in the article.