Real estate agents in Ontario are paid on commission, not salary. Understanding how commission splits work is vital for any agent evaluating a new brokerage or mapping earnings.
Typical Commission Rates
- Combined commission: 3.5% to 5% of the property’s final sale price (plus HST)
- Split: Usually 2.5% each to the seller’s and buyer’s agent, but negotiable
“In Ontario, real estate commission rates aren’t regulated. They are negotiable, but most brokerages use a typical range of 3.5%–5%, split between the listing and buying agents.”
— Rocket Advance, WOWA.ca
Brokerage Splits: How Your Cut Is Calculated
- Agent Split: After the main commission is paid to the brokerage, agents typically keep 60–90% of their portion. For example:
- Total commission on $800,000 sale at 5%: $40,000
- Listing agent: $20,000
- Buyer’s agent: $20,000
- Brokerage cut (e.g., 30%): Agent keeps $14,000
- Total commission on $800,000 sale at 5%: $40,000
Variables That Affect Your Split
- Experience level: New agents often start at lower splits (e.g., 60/40)
- Deal volume: Higher producers may negotiate better rates
- Additional fees: Desk, admin, technology costs
See real examples and advice on How to Choose the Right Real Estate Brokerage in Ontario as a New Agent.
