Selling a home isn't free. Understanding all the costs upfront lets you plan properly and avoid surprises on closing day. Here's the complete breakdown for London ON sellers in 2025.
Commission is the largest selling cost by far. In Ontario, commission is typically split between the listing agent (your agent) and the buyer's agent. On a $620,000 sale at 4%, total commission is approximately $24,800 plus HST. As a seller, you pay both sides — the buyer's agent works for free from the buyer's perspective, but their commission comes from your proceeds. Commission rates are negotiable, but be cautious of agents who significantly undercut — marketing quality often reflects what they're paid.
You need a real estate lawyer to handle the title transfer, discharge your mortgage, and manage the flow of funds on closing day. Legal fees in London ON typically run $1,500–$2,500 including disbursements (title search, registration fees, etc.). Shop around — fees vary between firms but don't choose solely on price. Real estate law is not the place to cut corners.
If you have an existing mortgage, discharging it on sale could trigger a prepayment penalty — especially if you're breaking a fixed-rate mortgage before its term ends. Penalties can range from a few hundred dollars to tens of thousands depending on your lender, rate, and remaining term. Contact your lender before listing to get the exact penalty amount. This surprises many sellers.
Investing in your home's presentation before listing almost always pays back more than it costs. Paint touch-ups, professional cleaning, minor repairs, and landscaping improvements are typically in the $500–$2,000 range for most homes. Professional staging (furniture and decor) costs more but can meaningfully accelerate your sale and improve offers. Many agents include a staging consultation as part of their service.
Most reputable London ON agents include professional photography in their commission. If yours doesn't, hire a real estate photographer independently — it's worth every penny. Homes with professional photos get significantly more online views and showings.
Don't forget to budget for your move. Local moves within London ON typically cost $1,000–$2,500 for a professional moving company depending on home size. Long-distance moves cost significantly more. Book movers early — good ones get booked out quickly, especially on popular closing dates at month end.
Real estate commission in Ontario is subject to HST. On a $24,800 commission, HST adds approximately $3,224. This is often overlooked when sellers calculate their net proceeds. Make sure your agent's quote is clear on whether HST is included or added on top.
Here's a realistic example for a $620,000 London ON home sale in 2025. Use this as a template for your own calculation:
Note: mortgage discharge amount varies based on your outstanding balance. Prepayment penalties not included in this example — check with your lender.
Rayna Elabed can give you a realistic picture of what you'll walk away with after selling your London ON home.
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