Commission is negotiable in Canada. Learn how rates vary by province, what services you can trade off, and how to open the conversation with your agent.
Written by Faiza Ahmed
Last updated on August 14, 2026
Can you negotiate a realtor commission?
In short, absolutely.
While commissions are often seen as fixed, they are negotiable in many cases. Understanding how to approach commission negotiations can help you save money while ensuring you receive quality service from your real estate agent.
In Canada, there is no government-mandated or standard rate for real estate commissions. The federal Competition Act prohibits certain agreements among competitors to fix prices, but a brokerage may independently set its own fee. You can propose different terms, and the brokerage can accept, counter, or decline.
In this guide, we will help you understand the different commission structures, regional variations in Canada, and strategies for negotiating a fair deal.
So let’s dive in.
Real estate commission rates vary by province and territory in Canada. There is no government-mandated market rate; terms also vary by brokerage, service package, property, and local market.
Here’s an overview of commission structures that may be proposed in different regions. These are possible fee models, not official or required rates:
Ontario: Commissions may be a percentage of the total sale price. The written agreement should separately identify the listing brokerage fee and any amount the seller agrees to pay toward the buyer’s brokerage fees. Flat-fee models are also available.
British Columbia: A tiered commission can apply one percentage to the first portion of the sale price and a lower percentage to the remainder. This total fee may then be divided between brokerages as agreed.
Alberta: A tiered structure is one possible model.
Manitoba: A percentage, tiered, or flat-fee structure may be proposed.
Quebec: The total fee may be a percentage or lump sum, with GST and QST added.
Atlantic Canada: Commission terms vary by province and brokerage.
Saskatchewan: A declining scale or flat rate may be used. PST can also apply to fees or commissions for completed transactions involving Saskatchewan real property, subject to exceptions.
Although these are possible commission structures, you as a seller can discuss and negotiate terms with your agent and brokerage before signing. The detailed agreement and remuneration rules are provincial or territorial.
Now, there are different types of real estate commission structures, and knowing them is key to negotiation:
Traditional Percentage-Based Commission
This is the most common model, where agents charge a percentage of the home’s selling price.
The percentage and included services vary by brokerage, property, and market.
Sellers can negotiate the proposed rate before signing, but the brokerage does not have to accept a different amount.
1% Commission Model
Some brokerages specialize in a 1% commission structure for listing services.
This model can cover listing and marketing services, but confirm what is included and whether the advertised rate applies only to the listing side.
Since the rate is already reduced, there may be no room for further negotiation. Learn more about how 1% commission works.
Flat Fee Commission
Some agents charge a fixed amount rather than a percentage of the sale price.
Flat fees vary by brokerage and can be lower than traditional commissions.
This structure works well for sellers looking for a predictable cost. Learn more about how flat-fee commissions work.
Ask whether the quoted amount includes applicable GST/HST and any provincial sales tax. Also confirm what services and expenses are included, when the fee becomes payable, and how any seller-funded amount for buyer-brokerage fees will be handled.
Not every situation allows for easy negotiation, but there are key times when sellers may have more leverage. It is crucial to negotiate the real estate commission and have it clearly documented in the applicable representation agreement before you sign it. This discussion should happen right after you have interviewed agents.
High-Value Properties: Agents may agree to a lower percentage for luxury homes, as the total dollar value of the commission will still be significant.
Strong Seller’s Market: If demand is high and homes are selling quickly with little marketing effort, agents may be more willing to reduce their rates on the listing side.
Multiple Transactions: If a seller is buying and selling with the same agent (a “buy-sell package”), they may have leverage to negotiate a reduced rate on one or both of the deals.
Do Your Research: Before entering negotiations, compare commission rates from multiple agents in your area. Look at what services different commission structures offer and assess their value.
Be Upfront About Your Expectations: Clearly outline what services you expect from the agent and what you are willing to pay. Ask whether they are open to flexibility based on the level of service provided or the final sale price.
Discuss the Buyer’s Agent Commission: The seller may offer an amount toward a buyer’s brokerage fees. A buyer may owe a shortfall under a buyer representation agreement, but buyer agents must still follow the duties that apply in the property’s jurisdiction. In Ontario, they must present matching properties without regard to remuneration.
Find a Full-Service Discount Brokerage: Some brokerages offer a full-service experience at a lower listing commission rate in Canada. Instead of sacrificing services, you can look for brokerages that provide the written service package you need at a lower cost.
Negotiating a commission when selling real estate in Canada requires an understanding of proposed commission rates, market conditions, and the services offered. As we have established, real estate commission terms can be negotiated before signing, and you as a seller must balance cost savings and ensure that you receive the expertise needed for a successful sale.
By researching options and using effective negotiation strategies, you can balance services and costs as a homeowner. Put the agreed services, remuneration, applicable taxes, and any buyer-brokerage compensation in the written agreement before signing.
About the author:
Faiza Ahmed
As the founder of PropertyMesh, Faiza Ahmed is dedicated to making real estate more transparent and cost-effective. While she advocates for more transparent, flexible fee structures so sellers can keep more of their equity, her core focus is empowering buyers and sellers to make informed decisions. Faiza is a licensed real estate broker registered with the Real Estate Council of Ontario (RECO Registration #4791581) and an active member of the Toronto Regional Real Estate Board (TRREB).
