One question I hear in almost every first meeting is this one: "If I hire you to help me buy a house... do I have to pay you?" Most first-time buyers are surprised by the answer: in Ontario, the buyer usually doesn't pay their agent anything out of pocket. The seller does.
The short answer: the seller pays.
When someone sells a home in Ontario, they sign a paper with their listing agent — the agent selling the house — agreeing to a commission. "Commission" is just a fancy word for "the agent's pay." Part of that commission is shared with the agent who brings the buyer. So your agent gets paid from the seller's side of the deal, not from your pocket. On closing day, the money moves on its own: the seller's lawyer takes the commission out of what the seller receives and sends it to the listing brokerage, which splits it with the buyer's brokerage.
How much is it?
There is no law that fixes the number — commissions are negotiable. In practice, what we see most right now is a total somewhere between 3.5% and 5%, with around 4% being the most common. That total is split between the two sides — usually around 2% for the buyer's side.
A real London example: in August 2026, the average home in London sold for $553,500 (LSTAR data). At 4%, the total commission would be about $22,140 — roughly $11,070 to each side. And keep in mind: that $11,070 doesn't go straight into the agent's pocket. The agent's brokerage — the office they work for — takes its share first. Every agent has a split agreement with their brokerage, so part of every commission goes to the office. What remains has to cover everything: marketing the home, professional photos, driving to showings, hours of paperwork, and often weeks of work that only gets paid if the deal actually closes. Nobody earns ten thousand dollars just for showing a house — most of that money is shared and spent long before it reaches anyone's pocket. The tax (HST) is added on top of that, and the seller pays it too.
But there IS a paper you sign: the Buyer Representation Agreement.
Ontario rules say your agent must have a signed agreement with you before they can make an offer on your behalf. Think of it as the paper that says "this agent works for me, and only for me." It also has a commission clause — read it. It explains what happens if the seller offers less commission than what was agreed. In the rare case where the seller isn't offering any commission at all — for example, someone selling their own home privately — you could end up paying it. That almost never happens in a normal listing, and a good agent will tell you upfront if it ever comes up.
What does this mean for you as a buyer?
Three things:
1. You don't write a check to your agent. When the house closes, your agent gets paid from the sale itself.
2. Your agent is legally on your side. Once that agreement is signed, your agent owes you three duties: loyalty (work in your best interest), confidentiality (never tell the seller your top price), and full disclosure (tell you everything that matters to your decision).
3. Never hand money directly to an agent. Commissions go to the brokerage — the office — never into an agent's pocket. If anyone asks you to pay them directly, that's a red flag.
One honest note: because the commission comes out of the sale price, some people say "you pay it indirectly." That's a fair point — it's part of the price you pay for the home. But in practice, the money leaves the seller's side of the table, not yours, and hiring your own agent costs you nothing extra.
If you're thinking of buying in London, Ontario, talk to us first. We'll explain every paper before you sign it — in plain words, no pressure.
— Paola Cano & Jose Ramirez, Thrive Realty Group Inc., Brokerage, London, Ontario.