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Home Sale Proceeds Calculator Canada

Evaluate the profit you will make from selling your property in Canada using our home sale proceeds calculator.

How to use Home Sale Proceeds Calculator

  1. Selling Price – Begin by entering the amount you have sold your property for.
  2. Outstanding Mortgage – Input the outstanding balance on your mortgage up until your closing date.
  3. Realtors’ Commission – In Canada, the seller usually pays the commission for both the seller and buyer agents, which is somewhere between 4% to 6%.
  4. Moving Cost – Enter the amount you'll pay to the mover to transfer your belongings from your current residence to the new one.
  5. Legal Fees – This is the amount of money your lawyer or notary (in Quebec) is charging you for preparing the ownership transfer deed.
  6. Net Cash to You – This is the final amount you will receive for your property after all the deductions.
Selling price
$
Realtors commission
%
Moving cost
$
Legal fees
Outstanding mortgage
$
Net cash to you
$-

What are Home Sale Proceeds?

Investing in real estate in Canada is probably the fastest way to watch your money grow. However, when it comes to selling a property, you will end up paying some fee to those involved in your home sale process.

You are expected to pay standard costs when you sell your home. These costs include legal fees for services, including a statement of adjustment, a mortgage discharge fee to the bank or financial institution to remove the collateral hold on your home.

Some other potential costs are realtor commission or real estate agent fees, repairs or renovation costs, inspection costs, appraisal costs, moving costs, staging fees, move-in cleaning fees. Most importantly if you sell your home before the end of your mortgage term, you will end up paying mortgage prepayment penalties to the financial institution or bank.

If the property you are selling was your principal residence every year since you bought it, you will not pay tax on the money you make from selling your home. If you rent out a part or the whole property while owning it, the income you generate through that becomes taxable when you plan to sell the home. In this case you must report the sale of your property on your income tax return.


What is a Home Sale Proceeds Calculator?

If you are a home-owner or a real estate investor, it is important to be aware of how much money you will make with your property. It is important to keep a tab on the housing market not only when buying a property, but also when you plan to sell, so you can make the most of your assets. If you don’t want to sell and just use the equity from your current property, it is good to have an estimate of your home sale proceeds so you can make informed decisions.

Our Home Sale Proceeds Calculator will help you calculate the amount of money you will make after paying the standard costs like legal fees, realtor’s commission, moving costs, taxes, among other costs. Having an estimate handy will give you clarity on your home sale price expectation, and help you take an informed decision on future home purchase.

How is Home Sale Proceeds Calculated?

Home sale proceeds are calculated by adding up the costs that you will incur at the time of selling your home, such as legal fees, outstanding mortgage, taxes, realtor commission, moving cost and deduct it from the selling price of the home. The amount you get from subtracting the costs from the sale price is the final home proceeds you will get.

Some other factors that could impact your home sale proceeds are:

  1. Inspection cost: A certified home inspector examines a home for any repairs or renovation that it may need. A thorough examination of the home can give you an idea of its structural, mechanical and electrical systems and an estimate of any future renovation cost the home might require. It is an added expense but if you have rented the property out for a long time and want to inspect it before selling to ensure you avoid sale price reductions when potential buyers complete their inspection, it’s a good idea to get the inspection done. A home inspection would cost around $300-$600 depending on the size of the home.
  2. Repairs or Renovation Cost: If the house you are planning to sell needs big repairs to maintain the value of the property, like roof repairs, kitchen or bathroom renovations or even to get a basement built, it can get quite expensive. Repairs or renovations can cost you thousands of dollars, so it is important to factor in the cost when estimating the sale price of the property.
  3. Appraisal costs: Financial institutions charge a fee for appraising a property. A certified professional who carries out a home appraisal (an estimate of the current market value of the home) will charge a fee to conduct the service.
  4. Staging fees: While some real estate agents offer staging services, others hire staging companies to prepare a home for selling. Professionally staging a home gives potential buyers an idea of what their future home would look like and this can really enhance their property viewing experience. It is advisable to stage up a home for selling but it could cost hundreds of dollars depending on the size of the property and number of rooms.
  5. Move-in, move-out cleaning fees: Move-in, move-out cleaning could cost anywhere around $400-$600 which includes deep cleaning washrooms, wardrobes, kitchen appliances and cupboards, walls, etc. If you are buying or selling a home, it would be an added expense to clean up unless you got the time and energy to do it yourself!

How can the Home Sale Proceeds Calculator help you?

  1. Set the sale price right: A Home Sale Proceeds Calculator can help you determine how much money will finally land in your pocket after the sale of the property. By using a calculator, you can get clarity on how you should price your home for sale.
  2. Tax Calculations: Real estate commissions are subject to sales tax in Canada and different provinces have a different percentage amount set aside for it. In Canada, the seller is responsible for covering commission for both buyers and seller’s agents. Ontario’s sales tax is 13%, Alberta and Saskatchewan is 10% and British Columbia is 5%.
  3. Planning for extra payments: You can plan better for any repairs or renovations based on this calculation and hence you will be in control of your finances.

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