Fee and HST examplesHow to calculate commission and compare the total
There is no official Orangeville commission rate. The illustrations below show the arithmetic for an $800,000 sale; they are not a fee survey, a service quote or recommended rates. Each percentage is a hypothetical combined fee, including any agreed buyer-brokerage contribution.
At the same sale price, the difference is $9,040 including HST. Use your own written quotes to repeat this calculation. Ontario’s HST rate is 13%; taxable real estate brokerage services generally attract HST even when the resale home itself is exempt. Sources: CRA’s GST/HST rates and tax treatment of real estate services.
Then compare the sale outcome
In a hypothetical comparison, a $780,000 sale with a combined 4% fee leaves $744,744 after that fee and its HST. An $800,000 sale with a combined 5% fee leaves $754,800—a difference of $10,056 before mortgage payout and other costs.
The different prices are assumptions used to illustrate the decision. They do not show that paying a higher fee causes a higher price. The question is whether the proposed work has enough credible value for your property.
Net-proceeds formula: sale price − brokerage fees − HST on fees − mortgage payout and lender charges − legal, preparation, moving and other selling costs or adjustments. For example: $800,000 − $32,000 − $4,160 − $400,000 mortgage payout − $8,000 other costs = $355,840.
A property-specific comparison should also consider Orangeville home value, home prices and current market conditions.