The Costs of Selling a House Sold for $615,000, Item by Item

Summary

• The commission costs $28,284 to $35,355 with taxes on $615,000
• The mortgage penalty is calculated on rates the seller does not pay
• Discharge and certificate of location, two bills to order early
• Moving is billed by the hour, travel included
• A cottage sale is taxed, and so is a forgotten form
• Who pays what, and how much for Mélanie and Patrick
• Selling costs specific to each house, never an average
• FAQ

Key takeaways: In Quebec, the costs of selling a house start with the broker’s commission, negotiated in the contract and taxed at 14.975%, followed by the mortgage prepayment penalty if the term is still running. The discharge, the certificate of location and the move add a few thousand dollars. A cottage adds tax on the capital gain. The buyer pays the welcome tax.

“Once everything is paid, how much will we have left?” Mélanie and Patrick ask the question the evening their Saint-Sauveur house receives a $615,000 offer. The averages they find online are no help: from one house to the next, selling costs vary by several thousand dollars.

The couple is fictional, but their numbers are not: each section adds one line to their bill.

The commission costs $28,284 to $35,355 with taxes on $615,000

In short: No fee schedule sets the commission in Quebec, and the GST and QST are always added to the agreed percentage.

No law sets the broker’s remuneration. Agreed upon in the brokerage contract, as a percentage or a flat fee, it is withheld by the notary from the sale proceeds.

The federal page on selling a home, published by the FCAC, states that the commission may be negotiable but usually ranges from 2% to 6% of the price, depending on location. It is taxable: the GST (5%) and QST (9.975%) are added to it, for an extra 14.975%.

For Mélanie and Patrick, 4% comes to $24,600 and 5% to $30,750. With taxes, the bill rises to $28,284 or $35,355. Each percentage point is worth $6,150, or $7,071 with taxes.

Before signing the contract, have the commission written in dollars, taxes included, and read the clause setting the share offered to the buyer’s broker. A low rate that does not cover that share can leave a second commission to pay.

The listing price, however, weighs more than the rate. Listing $15,000 too low costs the seller $14,138, since the 5% commission, taxes included, drops by only $862. Conversely, an overpriced house sits on the market and often ends up selling below its value, as this guide to selling in the Laurentians explains. A property evaluation based on comparable sales in the area sets that starting point.

The mortgage penalty is calculated on rates the seller does not pay

In short: A closed fixed-rate loan costs the higher of three months’ interest or the interest rate differential, calculated on posted rates rather than on the rate actually paid.

An open mortgage can be repaid at no cost; a closed variable-rate loan generally costs three months’ interest. For fixed rates, the Autorité des marchés financiers on mortgage penalties indicates that institutions charge the higher of two amounts: three months’ interest, or the interest rate differential.

This differential multiplies the balance by the gap between the posted rate at signing, meaning the rate paid plus the discount obtained, and today’s posted rate for the remaining term, then by the number of years left.

The actual rates applied to Mélanie and Patrick’s loan

Their closed 5-year loan was signed in October 2024, and $280,000 remains to be repaid over 3 years. The posted rates of the major chartered banks, which the Bank of Canada records every Wednesday, show 6.49% for 5 years on October 9, 2024, and 6.05% for 3 years on October 21, 2026.

Suppose they pay 4.49%, a two-point discount. Three months’ interest comes to $3,143. The differential comes to $280,000 × 0.44% × 3 = $3,696. The lender keeps the higher amount: $3,696.

According to the AMF, some lenders subtract the discount from the current rate, giving 4.05% instead of 6.05%. The gap then rises to 2.44 points and the penalty to $20,496, for the same loan on the same day.

Before setting the signing date, ask the lender for a written, dated penalty statement that shows the calculation method.

Discharge and certificate of location, two bills to order early

In short: The discharge is paid to the lender and the notary, the certificate to the land surveyor, who needs several weeks.

According to the FCAC page on mortgage discharges, updated September 25, 2025, the lender usually charges $0 to $400 where these fees are not regulated, and the professional $400 to $2,500.

In Quebec, this professional is most often the buyer’s notary, who provides the exact amount. An old mortgage that was never cancelled adds to the bill. For Mélanie and Patrick, let’s use $1,000.

The home-selling costs compiled by Centris in December 2024 put the certificate of location at around $1,500, with a turnaround of four to six weeks. It must be redone if it is more than 10 years old or no longer reflects the property as it stands: an extension, a shed, a pool, even a cedar hedge.

Mélanie and Patrick’s dates from 2013: another $1,500, ordered as soon as they choose their broker.

Moving is billed by the hour, travel included

In short: Two movers cost $120 to $180 an hour according to Centris, and leaving from the Laurentians adds travel time.

For a four-bedroom house and a trip to Laval, Mélanie and Patrick plan on eight hours at $150 (assumption), or $1,200, or $1,380 with taxes.

Three questions to ask when getting a quote:

• Is travel time billed?
• Is there a minimum number of hours?
• Are boxes and moving blankets included?

A cottage sale is taxed, and so is a forgotten form

In short: Only the property designated as the principal residence escapes tax on the gain, and the designation must be reported for the year of the sale.

According to Revenu Québec on selling a property, half of a capital gain is generally taxable, and a loss on the sale of a house is not deductible. Designating the property as a principal residence eliminates all or part of the gain.

Even with no tax owing, form TP-274 must be attached and box 109 of Schedule G checked for the year of the sale, or a penalty of $100 per month applies, up to $5,000. Federally, it is form T2091 and Schedule 3.

The owner of a house in the city and a cottage in the Laurentians can designate only one property per year, for the couple and their minor children. How the years are split is decided with an accountant, before signing. Mélanie and Patrick are selling their principal residence: $0 in tax, forms filed.

Who pays what, and how much for Mélanie and Patrick

In short: The seller pays the commission, the penalty, the discharge, the certificate and their own move; the deed of sale and the welcome tax are the buyer’s responsibility.

The breakdown separates what can be negotiated from what can be planned.

Excluding the commission, the couple pays $7,576, nearly half of it in penalty. With the calculation variant flagged by the AMF, the penalty alone would rise to $20,496, more than 70% of the 4% commission, taxes included.

On the buyer’s side, the deed of sale is covered in the article on notary fees when buying.

Selling costs specific to each house, never an average

Taxes included, Mélanie and Patrick’s costs reach $35,860 to $42,931. Two lines decide almost everything: the percentage written in the brokerage contract and the lender’s penalty method, which can add $16,800. The rest can be planned.

Out of $615,000, they are left with $572,069 to $579,140, then $292,069 to $299,140 once the $280,000 balance is repaid. Their last step before listing: lay the penalty statement, the new certificate and the commission in dollars side by side, then compare the total with the price they are targeting in Laval. To run this calculation with a realistic price for your own house, book an appointment with the team and bring your latest mortgage statement.

FAQ

What selling costs does the seller pay on a house?

The list of costs for selling a house or a cottage starts with the broker’s commission, usually 2% to 6% of the price according to the FCAC, plus the GST and QST. Added to that are the penalty if the closed loan has not matured, the discharge, an up-to-date certificate of location and the move. Unless the property is the designated principal residence, capital gains tax also comes into play.

Does the seller pay the notary when selling a house?

Only in part. The buyer chooses the notary and pays for the deed of sale, but the seller covers the cost of discharging and cancelling their mortgage, including any old mortgage never cancelled, as well as any title corrections needed. The professional usually charges $400 to $2,500 for the discharge. Since the notary works for the buyer, the seller gets the exact amount from that office.

Can you avoid the mortgage penalty when selling your house?

Sometimes. An open mortgage can be repaid without a penalty, and some contracts allow the loan to be ported to the next property or assumed by the buyer. Selling close to maturity also reduces the bill, since the rate differential is multiplied by the years remaining. Reread the prepayment clause and ask the lender which current rate it uses, with or without your discount.