Frequently Asked Questions

When purchasing a home, many buyers overlook one opportunity to reduce costs—real estate commission rebates, also known as cashback. Here’s a deeper dive into this potentially money-saving option and how it can play a key role in your property purchase.

What Are Commission Rebates or Cash Back Offers?

Think of a commission rebate as a “thank you” from your real estate agent. After completing a successful home purchase, your agent returns a portion of their commission to you as cash. While the seller typically pays the commission, our agents will pass part of that payment back to you, making homeownership a little more affordable.

How Much Can You Expect From a Cashback Agent?

Rebates typically vary based on the sale price of the home and the agent’s terms. On average, you might receive anywhere between 0.5% to 1.5% of the purchase price back in cash. For example, on a $500,000 home, this could mean $2,500 to $5,000 in your pocket. The more expensive the home, the larger your potential rebate.

Why Should You Consider a Cashback Rebate?

It’s simple: a cashback rebate helps ease the financial burden of buying a home. Whether you apply the rebate toward closing costs, home improvements, or just save it for a rainy day, this incentive can make a real difference in your budget. Plus, it’s an excellent way for buyers to stretch their dollars, especially in today’s competitive market.

Why Do Agents Offer Cashback?

Real estate agents offer rebates as a competitive edge in a crowded market. It’s a win-win—agents can attract clients while helping buyers save money. While not all agents offer cashback rebates, those who do use it as a selling point to differentiate themselves from competitors. It also helps build trust and loyalty with clients.

How to Ask for a Cashback Rebate

Asking for a cashback rebate is simple! During your initial meeting with an agent, ask them directly if they offer rebates which you do not have to do when you connect with one of our real estate agent. If they do, ensure you understand how much you can receive, when the rebate will be issued, and any conditions tied to the offer. Being transparent upfront will ensure you’re on the same page throughout the process.

When Will You Receive Your Cashback?

Typically, you’ll receive your rebate after the deal closes, though some agents may process it earlier (Corporate approval is required for recieving the rebate prior to closing, we recommend that you speak with your real estate agent). Be sure to confirm the timeline with your agent and clarify the payment method. Whether it is a cheque or direct deposit, it’s essential to understand when and how the rebate will arrive.

How to Find Out More About Your Cashback Rebate

Always ask your realtor for the full details of the cashback rebate, including the percentage of commission being refunded and the terms tied to it. And ,ake sure everything is documented in writing so that there are no surprises later in the process. If you’re unsure about the conditions, don’t hesitate to ask for clarification or reach out to our corporate email address [email protected] with Subject: Buyer Agent Rebate.

Tax Implications of Commission Rebates

Generally, commission rebates are not taxable in Canada for personal residential transactions. However, if the home is purchased as an investment property, the rebate could be factored into your property’s acquisition costs, which might impact your taxes down the road by CRA that is why we always recommend that you consult with a tax professional to fully understand any tax implications based on your situation.