This simple calculator gives a quick read on the economic viability of renting out, rather than selling your house. It divides the net operating income from renting the property by the expected sale price of the house, giving you an investment yield--like a bond yield. If this yield, also called a "capitalization rate," is less than what long-term Treasurys are yielding (around 5.7%) you'd probably be better off selling your house. Type in values or use sliders to calculate estimated annual income and capitalization rate.
Real estate agent's Commission Usually this is the largest cost when selling a property. Commission is a fee paid to your real estate agent that represents a percentage of the total selling price you receive for your property. The rate of commission is based on comparative rates around your neighborhood plus Harmonized Sales Tax (HST). In some cases a seller will offer higher commission than is normal to give incentive to real estate agents to sell their home. If you offer less commission than is normal, this creates less incentive for the buyer's agent to show your property.
Legal Fees Miscellaneous legal fees paid to a lawyer or notary public for attending to the execution of documents, discharging leans and encumbrances, etc.
* Approximately $350 to $550
Title Clearing Costs These are fees charged by various institutions to clear the title of your property for transfer. Examples include: discharge fees charged by encumbrance holders and mortgage pre-payment penalties charged by your lending institution. (Check with your lender to determine the balance of your mortgage and your mortgage pre-payment terms.)
Accounting Fees This cost only applies to Sellers Not Residing in Canada who need an accountant to apply to Revenue Canada for a T2062 Clearance Certificate on their behalf.
* Approximately $500
Harmonized Sales Tax (HST) Federal government tax collected on all goods and services.
* 12% is applied on all commissions when selling a property * 12% is applied on all fees such as those of inspectors and lawyers
Sales Tax (if applicable) Provincial sales tax is applied on capital gains and may apply to investors when they make a profit on selling revenue properties. This tax does not apply to any principal residence. (more...)
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.