The question I hear most from sellers — before they've even decided whether to list — is some version of: "What am I actually going to walk away with?"

It's the right question to ask first. Knowing your expected net before you commit to anything puts you in control. And the answer is more specific than most articles let on.

Here's exactly what comes out of a London home sale.

The Main Costs You'll Pay at Closing

Real estate commission is typically the biggest line item on your seller's statement. In Ontario, commission is negotiable, and under RECO rules it must be disclosed in writing in your listing agreement. Most sellers budget somewhere between 4% and 5% of the final sale price. On a $620,000 sale, that's $24,800 to $31,000.

Here's the part that surprises people: Ontario charges HST at 13% on top of the commission. This isn't a tax on your sale — it's a tax on the service fee. That adds another $3,224 to $4,030, depending on the commission rate.

So your total commission cost, including HST, works out to roughly $28,000 to $35,000 on a $620,000 sale.

Legal fees are non-negotiable in Ontario — you need a real estate lawyer to legally close the transaction. A seller's lawyer typically charges $1,500 to $2,500 for their services, plus disbursements (land transfer searches, registration costs, software fees, couriers). Budget around $1,800 to $3,000 all in.

Mortgage discharge costs cover the administrative cost of removing your lender's interest from the title when you pay off your mortgage at closing. Most lenders charge between $200 and $350.

Property tax adjustments are usually small. If you've prepaid property taxes past your closing date, the buyer credits you back for that period. You may also owe a small top-up if taxes are owing. This one usually breaks close to even, or slightly in your favour.

The Cost Most Sellers Miss

The one that catches people off guard — every year — is the mortgage prepayment penalty.

If you have a closed fixed-rate mortgage and you sell before the term ends, you typically owe a penalty to break the contract early. The amount varies depending on your lender, your rate, and how much time is left on your term.

The two most common formulas are three months' interest or the Interest Rate Differential (IRD) — whichever is higher. IRD penalties on fixed-rate mortgages can range from a few hundred dollars to several thousand, depending on the gap between your contract rate and what your lender could charge today.

Variable-rate mortgages usually only face a three-month interest penalty, which is typically much smaller. Open mortgages have no penalty at all.

The practical step? Ask your lender for a written payout statement before you list. It's free, it takes a phone call, and it removes the guesswork from your net calculation entirely.

What You Don't Pay

Here's the relief: sellers in London, Ontario do not pay Ontario's Land Transfer Tax.

LTT is a buyer's cost, calculated on the purchase price and paid at closing. And unlike Toronto — where buyers pay both a provincial and a municipal Land Transfer Tax — London has no municipal surcharge. That saves your buyer money, which can work in your favour during negotiations.

As the seller, LTT won't appear on your closing statement. That's one fewer line item to worry about.

Capital gains tax is also typically not an issue if the home is your principal residence. The principal residence exemption means most Ontario homeowners owe no capital gains tax on the profit from selling their primary home. If the property was a rental or investment home, the rules are different — confirm the specifics with your accountant before listing.

Costs Before the Sign Goes Up

The closing costs above are what you pay on the transaction itself. The investment you make before listing matters too — and it affects your final sale price.

Pre-listing prep costs vary widely depending on your home's condition. For most sellers in London, they include some combination of:

• Touch-up painting — often the highest-ROI spend before a listing
• Professional cleaning and decluttering
• Landscaping and exterior touch-ups for curb appeal
• Minor repairs (leaky taps, sticking doors, loose railings)
• Professional photography — usually covered by your agent in this market

Staging can range from a simple furniture rearrangement (sometimes included in the listing service) to a full vacant-home staging, which can cost $2,000 to $5,000. Done well, staging typically more than pays for itself — buyers in London are comparing options carefully right now, and presentation moves the needle.

What's worth spending on is different for every home. A good local agent will give you a straight read on what actually matters in your specific neighbourhood before you invest a dollar in anything.

Running Your Own Numbers

Here's what a rough seller's statement looks like on a $620,000 London home with a $400,000 mortgage balance:

Subtract those costs and your mortgage balance from the sale price:

$620,000 − $33,800 (closing costs) − $400,000 (mortgage payoff) ≈ $186,200 in your pocket — before any prepayment penalty, moving costs, and whatever you invested pre-listing.

Your actual number will be different. It depends on your sale price, your commission rate, your mortgage terms, and what you spend before listing. But this is the frame.

The only way to get your real number is to run it with current comparable sales data for your home and neighbourhood — which is exactly what I walk my sellers through before we make any decisions together.

Frequently Asked Questions

Do sellers pay Ontario's Land Transfer Tax?

No. Ontario's Land Transfer Tax is paid by the buyer at closing, not the seller. Sellers in London won't see LTT on their closing statement. London also has no municipal Land Transfer Tax — unlike Toronto, where buyers pay both a provincial and a municipal tax. That's a meaningful saving for your buyer.

How much is real estate commission in Ontario?

Commission rates in Ontario are negotiable and must be disclosed in writing in your listing agreement, per RECO rules. Most sellers in Ontario budget 4% to 5% of the final sale price, though the exact rate depends on the services included and the brokerage you work with.

Is there HST on real estate commission in Ontario?

Yes. The 13% Ontario HST applies to real estate commission — it's a tax on the service fee, not on your property sale proceeds. If your commission is $25,000, you'll also owe $3,250 in HST on top of that.

What is a mortgage prepayment penalty and do I have to pay it when I sell?

If you have a closed fixed-rate mortgage and you sell before your term ends, your lender will typically charge a penalty to break the contract early. The penalty is the greater of three months' interest or the Interest Rate Differential (IRD). Ask your lender for a written payout statement before you list — that number belongs in your net calculation.

How do I find out what I'll actually net from selling my London home?

Your net proceeds are your sale price minus commission (plus HST), legal fees, mortgage payout and any prepayment penalty, and closing adjustments. The most reliable way to get a realistic estimate is to ask your agent to run a net sheet based on a current comparable market analysis — most agents offer this for free as part of the listing conversation.