What does it cost to sell a house?
Roughly four to five percent of the sale price all in: commission plus sales tax on it, legal fees, and any mortgage penalty if you are breaking mid-term. Commission is negotiable and it is the largest line.
Commission is the bulk of it, split between the listing and cooperating brokerages, with sales tax charged on top. The rate is negotiable and always has been; a lower rate on the listing side is common on higher-priced properties.
Then legal fees for the sale, which are lower than for a purchase, plus discharge fees for your mortgage.
The line that surprises people is the mortgage penalty. Selling mid-term breaks the mortgage unless you can port it to your next property, and on a fixed mortgage with a posted-rate differential calculation that can be five figures. Check portability before you list.
Also budget the presentation costs that are effectively mandatory in a competitive market: staging, photography, and repairs a buyer would otherwise deduct for. And if you are buying as well, remember you pay land transfer tax again on the purchase, which is why moving frequently is expensive regardless of what prices do.
No capital gains tax on a principal residence, which is the one piece of good news in the list.
Next questions
How long do I need to stay in a house to break even?
Long enough for the price to recover everything you paid to get in and everything it costs to get out, and that is two numbers rather than a year count. This app prices the first from your own purchase price and municipality. It does not hold the second and does not forecast appreciation, so it will not hand you a break-even year.
Ontario
What is a mortgage penalty and how is it calculated?
On a variable it is normally three months' interest. On a fixed it is the greater of three months' interest and an interest rate differential, and the way your lender calculates that differential can change the bill by thousands.
Canada-wide