Selling

What selling costs you

What comes off the sale price between the accepted offer and the money reaching you.

Commission, and the tax on it

Commission in Greater Vancouver is typically quoted as a percentage on the first $100,000 and a smaller percentage on the balance, split between the listing and buyer sides. GST at 5% applies to the commission, not to the sale price — a detail that surprises people at completion.

Discharging the mortgage

If you are breaking a fixed term early, the penalty is the greater of three months' interest or the interest rate differential. On a variable it is usually three months' interest. Ask your lender for the figure in writing before you list — IRD penalties can run to five figures.

There is also a discharge fee to remove the charge from title, usually a few hundred dollars.

Legal and adjustments

Your lawyer or notary handles the discharge, the transfer and the statement of adjustments. Property taxes and strata fees are apportioned to the completion date, so you may owe the buyer or be owed.

What is left

Net proceeds are the sale price less commission and its GST, less the mortgage balance and any penalty, less legal fees and adjustments.

The seller view of the True Cost calculator works this through →

Before you rely on any of this

These are the current rules as we understand them, written to be checked — not advice. Rates, thresholds and exemptions change. Confirm anything that affects a decision with your lender, lawyer or notary, and accountant.

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