How Much Commission Does a Realtor Make in Canada?

To answer this question, Rate-My-Agent.com conducted a comprehensive study to calculate real commission rates from 979 actual transactions Rate-My-Agent.com has the data for.  The commission rates listed here are the averages.

Average Real Estate Agents Commission Stats in Canadian Provinces

Breakdown of average commission percentages across all Canadian provinces and territories:

Canada	2.04%
Alberta	2.03%
British Columbia	1.78%
Manitoba	1.98%
New Brunswick	2.41%
Newfoundland and Labrador	2.83%
Nova Scotia	2.20%
Northwest Territories*	2.50%*
Nunavut*	2.50%*
Ontario	2.16%
Prince Edward Island*	2.50%*
Quebec	1.87%
Saskatchewan	2.20%
Yukon*	2.50%*

(* 2.50% is used as there is no authoritative reference available, and our requests for this data were unanswered by the real estate boards.  In actuality, the average commission is probably higher in these markets as the average sale price is lower.  On average, the commission rate as a percentage, is higher on lower dollar value transactions.)

Average Real Estate Agents Commission in Major Canadian Cities

For a more granular understanding, let's delve into the average commission rates in major Canadian cities, measured per agent side:

Calgary, AB	1.98%
Edmonton, AB	2.19%
Vancouver, BC	1.49%
Victoria, BC	1.83%
Winnipeg, MB	1.94%
Halifax, NS	2.18%
London, ON	1.85%
Ottawa, ON	2.27%
Toronto, ON	2.23%
Windsor, ON	2.52%
Montreal, QC	1.84%
Regina, SK	2.23%
Saskatoon, SK	2.16%

Understanding commission rates can help you make informed decisions in your real estate deals. Let's explore the common questions surrounding commission rates and their implications on your transactions.

Who Pays Commissions - Seller's Perspective

In real estate transactions, the responsibility for paying commissions typically falls on the seller. The seller and the listing (seller's) agent agree on the commission rate when they enter into a listing agreement. This agreement is a legally binding contract that outlines the terms and conditions of the real estate transaction, including the commission rate for both the seller’s agent and the buyer’s agent.

Upon the completion of the transaction, the seller pays a commission to the listing agent brokerage, who in turn pays the contracted amount of commission to the buyer's agent. 

Who Pays Commissions - Buyer's Perspective

When a buyer engages the services of a real estate agent, they often sign a buyer representation agreement. This legally binding contract outlines the duties of the buyer’s agent and specifies that the agent will be compensated by the seller’s commission. This agreement also provides transparency about the commission structure and any potential out-of-pocket expenses the buyer might incur.

From the buyer's viewpoint, the commission is typically embedded in the sale price of the property. While the buyer doesn’t pay the agents directly, the cost is indirectly factored into the overall transaction and comes out of the total payment. 

Commission As a Percentage of the Sales Price

In Canada, a real estate agent's commission is typically calculated as a percentage of the property's sale price. While flat rate or fixed fee commissions are also used, for the purposes of this study, we represented all the fees as a percentage of sale price.

The percentage is typically divided between the buying and selling agents, each earning a share of the total commission. This split can vary depending on the specifics of the representation agreements of the parties involved, but a common commission structure is a 50/50 split between the buyer's agent and seller's agent.

Can I Negotiate the Commission?

Yes, commissions are negotiable.

It's important to note that the commission percentage for a specific property is negotiated between the seller and the listing agent. During this process, the commission rate for the buyer's agent is also implicitly determined.

This does not negate the fact that a buyer also has the opportunity to negotiate the commission rate with their agent. They can discuss it directly before signing a representation agreement. Furthermore, a buyer's agent may even negotiate their commissions directly with the seller's agent.

How Much Does It Cost Me to Hire a Realtor?

To determine the cost of hiring a real estate agent, it's crucial to understand that the commission is divided between the listing (seller's) agent and the buyer's agent.

By multiplying the listed percentages by two, you can estimate the typical cost to the seller. For instance, based on the average commission in Canada, hiring a Realtor to sell your property would typically cost 4.09% of the sales price.

What Is the Average Commission Rate in Canada?

The average commission percentage a Realtor makes on a sale is 2.04% in Canada.  The average paid by sellers is 4.09%.

What Are the Minimum and Maximum Commission Realtors Charge in Canada?

In our analysis of 979 real estate transactions, we found that commission rates vary widely. The lowest recorded commission was 0.25%, while the highest reached 4.20%.

What Is the Average Realtor Commission Rate in Each Province in Canada?**

Here are the lists of 9 provinces with their main cities and average commission. (**PEI and the Territories have no authoritative reference available, and requests for this data were unanswered by the real estate associations.)

 

How Much Do Real Estate Agents Make in Alberta?

In Alberta, the average commission a Realtor makes on a sale is 2.03%. Here's a list of cities in Alberta and their average commission.

Airdrie, AB	2.00%
Calgary, AB	1.98%
Edmonton, AB	2.19%

How Much Do Real Estate Agents Make in British Columbia?

In British Columbia, the average commission a Realtor makes on a sale is 1.78%. Here's a list of cities in British Columbia and their average commission.

Abbotsford, BC	1.96%
Chilliwack, BC	1.73%
Coquitlam, BC	1.65%
Kamloops, BC	1.78%
Kelowna, BC	1.77%
Langley, BC	1.82%
Nanaimo, BC	1.79%
Richmond, BC	1.60%
Surrey, BC	1.69%
Vancouver, BC	1.49%
Victoria, BC	1.83%

How Much Do Real Estate Agents Make in Manitoba?

In Manitoba, the average commission a Realtor makes on a sale is 1.98%. Here's a list of cities in Manitoba and their average commission.

Brandon, MB	2.41%
Winnipeg, MB	1.94%

How Much Do Real Estate Agents Make in New Brunswick?

In New Brunswick, the average commission a Realtor makes on a sale is 2.41%. Here's a list of cities in New Brunswick and their average commission.

Fredericton, NB	2.37%
Moncton, NB	2.41%
St John, NB	2.00%

How Much Do Real Estate Agents Make in New Foundland and Labrador?

In New Foundland and Labrador, the average commission a Realtor makes on a sale is 2.83%. Here's a list of cities in New Foundland and Labrador and their average commission.

Bay Roberts, NL	2.00%
St John's, NL	2.50%

How Much Do Real Estate Agents Make in Nova Scotia?

In Nova Scotia, the average commission a Realtor makes on a sale is 2.20%. Here's a list of cities in Nova Scotia and their average commission.

Bedford, NS	2.25%
Dartmouth, NS	2.29%
Halifax, NS	2.18%

How Much Do Real Estate Agents Make in Ontario?

In Ontario, the average commission a Realtor makes on a sale is 2.16%. Here's a list of cities in Ontario and their average commission.

Barrie, ON	2.19%
Brampton, ON	1.63%
Brantford, ON	2.08%
Burlington, ON	2.03%
Cambridge, ON	2.00%
Guelph, ON	2.13%
Hamilton, ON	2.34%
Kitchener, ON	1.98%
London, ON	1.85%
Mississauga, ON	2.27%
Oakville, ON	2.25%
Ottawa, ON	2.27%
Sudbury, ON	2.50%
Toronto, ON	2.23%
Windsor, ON	2.52%
Woodstock, ON	1.83%

How Much Do Real Estate Agents Make in Quebec?

In Quebec, the average commission a Realtor makes on a sale is 1.87%. Here's a list of cities in Quebec and their average commission.

Gatineau, QC	1.93%
Laval, QC	2.25%
Montreal, QC	1.84%
Quebec, QC	1.75%

How Much Do Real Estate Agents Make in Saskatchewan?

In Saskatchewan, the average commission a Realtor makes on a sale is 2.20%. Here's a list of cities in Saskatchewan and their average commission.

Regina, SK	2.23%
Saskatoon, SK	2.16%

How We Gathered and Verified the Agent Commission Data

• The average commission percentage paid to agents is based on 979 verified real estate transactions in Canada from 2018-2024 Third Quarter.
• All commission percentages were calculated by dividing the commission amount by the sale price of the property.

While the average commission for Realtors in Canada stands at 2.04%, our research reveals a wide range of rates, from as low as 0.25% to as high as 4.20%. This means, negotiating commission rates is not only possible but often advisable, and highlights the importance of local market knowledge when negotiating commission agreements.

Ultimately, transparency regarding commission structures empowers individuals to make informed decisions when hiring real estate agents.