How Much Does a Real Estate Agent Make in Canada?
How Much Does a Real Estate Agent Make in Canada?
If you’re wondering, how much does a real estate agent make?
Here’s a look at the average salary for a real estate agent in Ontario, Quebec, Manitoba, Newfoundland, and Labrador.
The average commission for real estate agents is 3% to 7% of the final purchase price.
Real estate agents often split their commission with a buyer’s agent.
So if a home costs $500,000, two realtors earn $12,500 each.
However, the average real estate agent does not sell many homes.
Average Salary for Real Estate Agents in Ontario
While real estate agents across Canada can make up to $140,661 per year, average salaries for agents in Ontario are considerably lower.
This is even though some agents make far more than others.
Top-performing agents in Ontario can earn more than $140,000 per year.
While these salaries are below average, they are still considerably higher than the average income of agents in other provinces.
The average salary of real estate agents in Ontario varies greatly depending on the city.
The difference is typically about 8% between the top ten cities.
In some cities, the low cost of living is one of the main factors influencing salaries.
Five jobs in the Real Estate Agent job category pay more than the average salary for agents in Ontario.
While many agents in Toronto earn more than others, their income is somewhat limited compared to agents in Calgary.
On average, agents in Toronto earn $45,000 a year compared to $44,000 in Calgary.
Average Salary for Real Estate Agents in Quebec
The average salary for real estate agents in Quebec varies depending on your city.
The top 10 cities vary by about 5%.
Therefore, you can make more money in Quebec if you work in a big city.
However, cheaper living costs might be a better choice if you’re looking for a smaller city.
In Quebec, the average gross salary for a Real Estate Agent is about $71,746 annually.
This is around $33 per hour. The average bonus is $10,259.
The salary ranges from $40,028 for an entry-level agent to $86,484 for a senior-level agent.
Over five years, the average salary of a Real Estate Agent in Quebec has increased by 10 percent.
Real estate agents in Quebec are known as real estate brokers.
The province’s regulatory body, the Quebec Professional Association of Real Estate Brokers, represents over 13,000 professionals in the field.
The average commission for a real estate agent in Quebec is 5% of the home’s selling price.
The average home price in Quebec was $370,331 in July 2021.
As a result, an average real estate agent in Quebec earns $90,720 a year.
Average Salary for Real Estate Agents in Manitoba
The average real estate agent in Manitoba makes around $48,400 a year.
However, the income may vary considerably depending on the location.
In Manitoba, the average real estate agent works in a city like Winnipeg.
In Manitoba, real estate commissions are roughly 5%.
Therefore, if you sold 2,000 properties at an average price of $346,943 each in June 2021.
The average commission would be $8,673 for each agent (after splitting the brokerage fees).
The average real estate agent in Manitoba will complete 24 transactions a year.
In that case, the average agent would earn around $145,704 per year, which is about $50 more than the actual salary.
Real estate agents may be able to earn much more in Winnipeg if they have advanced degrees and more experience.
While a career in real estate may not be suitable for everyone, it can help you build your wealth.
Average Salary for Real Estate Agents in Newfoundland and Labrador
In Newfoundland and Labrador, Canada, the average salary of a real estate agent is $66,058 per year.
The average income per agent is $33 per hour, which is 5% below the national average.
Additionally, a real estate agent can expect to earn a bonus of $10,170 on top of their annual salary.
The cost of living in this province is higher than the national average.
These costs include housing, food, transportation, health services, property taxes, and utilities.
The median income in Newfoundland and Labrador is $61,130 per year, which is higher than the average income in the rest of Canada.
The average commission for a real estate agent is 5% of the home’s sale price.
In addition, Newfoundland and Labrador real estate agents usually split their commission with the brokerage.
Single-detached houses dominate the housing market in Newfoundland and Labrador.
Apartments account for 73.4% of the housing market, just 0.4% of the total.
A typical Newfoundland and Labrador household has 2.3 people, with the largest share of households consisting of two people.
In contrast, households with one person constitute the second highest percentage of homes.
While households with four or more members make up 28.8% of all households in Newfoundland and Labrador.
What Does a Real Estate Agent Make in Ontario?
If you are considering a career in real estate, you need to know what to expect regarding salary.
Many different factors affect the salary of a real estate agent.
First, you need to know Ontario’s legal requirements for real estate agents.
You must understand that you must work for a brokerage if you want to practice in the province.
Brokerages oversee real estate agents and provide many services.
For this reason, real estate agents must pay part of their commission to their brokerages.
Depending on the brokerage, this split can be as high as 30% of the commission of a fee transaction.
In addition, agents pay monthly “desk fees” to brokerages.
Approximately 15-20% of an average agent’s income goes to brokerages.
Average Real Estate Agent Salary in Ontario
In Ontario, a typical residential real estate agent makes $82,600 annually.
However, many agents work part-time or even self-employed, and the percentage of part-time agents is higher than the percentage of full-time agents.
Nevertheless, the government of Canada rates job prospects for real estate agents in the province as excellent or fair.
A full-time agent makes $120,338 per year in Ontario.
However, the salary of a real estate agent can vary widely, depending on the type of work and the region in which they work.
Those with bachelor’s or higher degrees earn an average of $133,547 per year.
Although the average salary for a real estate agent in Ontario is slightly lower than that of other provinces, top performers in the province can earn up to $140,661.
While Ontario has a healthy job market, some regions have limited employment opportunities.
Average Real Estate Agent Salary in Toronto
Average real estate agent salaries in Toronto are below average.
Most agents make less than $40k a year, and some do as few as a few transactions a year.
They make between $8k and $12k per transaction and pay around 25% to 30% of their income in taxes.
In addition to that, many agents are under-educated and lack the real-world experience that you do.
Most of these realtors struggle for years to make ends meet.
Toronto real estate agents earn a commission, usually about 5% of the final purchase price.
This amount is split between the buyer’s agent and the seller’s agent.
So, for example, if a home sells for $500,000, two real estate agents will make $12,500 each.
That’s a pretty good income, even if you don’t sell many homes.
While some agents think they need high levels of competition and demand to make a good income, many areas can offer similar incomes.
The key is to work hard and be disciplined.
Average Real Estate Agent Salary in London
Real estate agents in London, Ontario, make an average gross salary of $71,934 a year.
This equates to about $35 an hour.
However, the salary is down by $46 from the national average and includes bonus payments of $10,747.
According to salary survey data collected from employers in London, ON, salaries for real estate agents range from $41,932 for an entry-level agent to $91,596 for senior-level agents.
According to the survey data, salaries for real estate agents in London, Ontario, are expected to increase by 10% over five years.
The salary range depends on the number of transactions a real estate agent completes annually.
However, most real estate agents work on less than ten transactions yearly.
That’s why salaries for real estate agents in London, Ontario, are lower than those in other Canadian cities.
In contrast, Toronto is home to high-priced homes and many real estate agents.
As such, the average real estate agent earns $118,600 a year.
The housing market in London is predicted to remain strong throughout 2020 and 2021.
The average home price increased from $478,300 in December 2020 to $657,600 in December 2021, which is a 37.5% increase in just one year.
This means that real estate agents in London can expect a salary of $130,664 per year – a decent amount of money considering the quality of living in the city.
Average Real Estate Agent Salary in Vancouver
In Vancouver, the average real estate agent’s salary is $71,000.
The top ten percent earn around $150,000 per year.
However, the average salary for a real estate agent varies based on experience.
Those with more than fifteen years of experience can earn over 142,000 CAD per year.
In Toronto, the average real estate agent earns $44,000 annually, slightly higher than the average.
In Toronto, agents typically sell two to three detached homes and four to 12 condominiums in a given year.
Of course, the number of properties an agent sells will vary depending on the number of sales, commission rate, and price per property.
The average commission rate for agents is five to six percent.
Agents who bring buyers will split the commission 50/50.
When a transaction is completed, the seller pays the buyer’s agent a commission of up to six percent of the sale price.
You may pay an agent a lower commission rate in a competitive market.
How Much Do Real Estate Agents Earn in Canada?
In Canada, real estate agents typically earn a commission from their clients.
However, the commission amounts vary depending on the market.
In areas where home prices are lower, agents will earn less.
For instance, a home sold for $2 million in Toronto would mean a commission of 2.5%, or $50,000.
This also depends on the market activity, and most Canadian markets are currently experiencing stock issues.
In these markets, competition for clients is fierce.
Average Salary Range for a Real Estate Agent in Canada
The average salary for a real estate agent in Canada varies depending on the province.
The average salary is based on a percentage of the selling price of a home.
Ontario agents typically earn about five percent of the sale price, while Alberta agents earn around 7% percent of the first $100,000.
Of the home’s selling price and three percent of the rest.
The salary range varies based on experience but is generally in the 132,000 to fourteen2,000 CAD range.
The median salary for a real estate agent in Canada is $46,212 per year.
This average includes housing, transportation, and benefits.
However, the salary will also depend on the agent’s skill, experience, and location.
If you’re new to the field, you’ll want to ensure that your salary aligns with your qualifications and location.
The average salary for a real estate agent in Canada is around CAD 106,000.
The average agent earns approximately $2,054 per home sold.
The average home in Canada costs about $677,775.
This means that real estate agents make an average of CAD 11,860 per home.
Recurring Costs of a Real Estate Agent’s Job
As a real estate agent, you’ll face recurring costs such as licensing fees and continuing education.
These expenses are typically based on monthly or annual sales.
Some are required to maintain your license, while others are investments in marketing your business.
You should budget for these recurring costs in advance.
Real estate agents are paid by commission, which is usually about five to six percent of a property’s selling price.
This fee is paid to the agent by the seller during the sale process.
In addition to their commission, real estate agents often pay other expenses out of their own pockets, such as office space, MLS access, and other fees.
Some agents put half of their commissions toward these expenses.
Real estate agents also have to pay for training and continuing education.
On average, agents spend at least $500 yearly on these expenses.
Continuing education is essential to stay legitimate and up-to-date on the latest industry rules.
Attending real estate conferences costs $50 to $100, but they provide valuable networking opportunities and the latest trends in the field.
Commission Structure for a Real Estate Agent in Canada
In Canada, real estate agents make their money by charging a commission percentage rate on the sale price of a home.
These commission rates can vary from province to province and between agents.
Some real estate agencies also offer flat fees for their services.
Generally, the selling agent earns more than the buying agent.
In Canada, the average real estate agent commission rate is 5%.
This commission is split between the seller’s agent and the buyer’s agent.
However, the percentage may vary, and it is best to know the market rates before choosing an agent.
Most agents offer a lower commission plan with a fixed fee of $950.
These commission plans are popular with sellers because they provide more upfront costs and reduce the fees paid.
A seller pays the listing agent’s commission when the home sells.
The seller pays the buyer’s agent a commission when the buyer purchases the home.
The commission structure for a real estate agent in Canada varies by location and agent experience.
In the GTA, sellers usually pay a commission to both a buyer’s agent and a listing agent.
Requirements for Becoming a Real Estate Agent in Canada
Becoming a real estate agent in Canada requires several prerequisites.
Before a person can practice in the field, they must complete pre-licensing training.
Obtain a brokerage agency sponsorship and complete supervised practical training.
This training is referred to as articling.
First, a person must be able to read and write the English language well.
Since all real estate documents are written in English, this requirement is mandatory.
Next, they must take real estate courses that teach them the essentials of the industry.
Once they have completed the training, they can begin working.
Another requirement is to be a member of the Canadian Real Estate Association.
If a person is a member of the CREA, they may be eligible to sit the exam.
They can also partner with a broker to sponsor the exam if they do not.
This association membership and professional training will help them become an expert in the field.
How Much Does a Residential Real Estate Agent Make in Canada?
You’re not alone if you’re wondering how much a residential real estate agent makes in Canada.
Toronto and Calgary are both very competitive markets, and home prices are higher in Toronto than in Calgary.
As a result, Toronto and Alberta real estate agents typically take a 7% commission on the first $100,000 of home sales.
Ontario Real Estate Agents Make $45,586 per year.
According to the Ontario Real Estate Association, the average residential real estate agent makes $45,586 annually.
This is higher than the national average of $44,590.
As a result, there is a high demand for real estate agents in Ontario.
Despite the limited number of homes for sale in the province, the average agent can expect to sell three homes a year.
The average income for a real estate agent varies by region, location, and skill level.
For example, according to the Government of Canada, a real estate agent in Ontario earns a median of $45,586 per year.
However, this figure doesn’t include the cost of living in the province.
Therefore, a top-performing agent in Ontario can earn up to $140,661, whereas a sub-performing agent may earn less than average.
Quebec Real Estate Agents Make $90,720 per year.
In Quebec, real estate agents are known as real estate brokers.
The Quebec Professional Association of Real Estate Brokers represents over 13,000 real estate professionals.
The average commission for a Quebec residential real estate agent is 5% of the selling price.
In July 2021, the average home sold for $370,331 in the province.
The salary of a real estate agent in Quebec is $90,720 per year.
In Quebec, residential real estate agents make $90,720 a year, which is about $38,080 per hour.
In Ontario, Manitoba, and Newfoundland, agents earn an average of $35,248 per transaction.
This means that an average agent will earn $2,054 per home sold.
However, it is essential to note that these figures are averages, as a residential real estate agent may not sell a large number of homes.
Alberta Real Estate Agents take a 7% Commission on the first $100,000
Real estate agents in Alberta usually take a 7% commission on the first $100,000 in a sale and then charge 3% on the remaining amount.
The fee structure can be confusing, especially when compared to other provinces in Canada.
However, this rate is average compared to most real estate offices across the country.
The commissions for real estate agents vary by area, but in Calgary, real estate agents generally take a 7% commission on the first $100,000 of a home’s sale and then a further 3% on the balance.
These commissions are subject to GST, but GST is not payable on resale homes, which are older homes that have not been substantially renovated.
This rate is often referred to as 7%/3%.
The commission rate for real estate agents in Alberta varies by prover example.
For example, real estate agents earn 3% to 5% of the property’s sale price in Ontario, while in Manitoba, real estate agents charge a flat 2.5%.
In British Columbia, real estate agents charge a graduated commission, with the first $100K being charged a 3% to 4% commission and 1% to 2% for the rest of the value.
In New Brunswick, commissions for real estate agents are typically 5% or higher, and in Alberta, they take 7% of the home’s sales price.
Toronto Real Estate Agents Take Same Commission
Many people in Toronto have asked, “Why do Toronto real estate agents take the same commission as their counterparts in other cities?”
The city is known for its inflated prices, but there is a simple answer: the high prices reflect a high demand for homes.
This means that high commissions don’t mean that you’ll automatically earn more money.
Many agents chase after a small number of homes, earning a high commission because they get paid after a successful transaction closes.
The standard commission is 5% of the sales price, split evenly between the buyer’s and seller’s agent.
However, some agents offer their clients lower commission schemes and even cash rebFor example.
Some agents may offer a combined 3.5% commission rate, or charge 1% of the sale price and an additional fixed fee of $950.
These strategies are common in higher-priced neighborhoods.
Manitoba Real Estate Agents take 5% Commission
If you are interested in selling or buying a Manitoba real estate property, you will need to negotiate the commission with the seller and your offer to purchase the property.
The commission is 5% of the sale price of the property.
In addition, the law states that the listing agent must notify the buyer of competing offers.
This is a requirement set by the province.
The commission rate for real estate agents in Manitoba typically ranges between four to 5% of the selling price.
This commission includes the buyer’s agent commission and the seller’s agent commission.
Most Manitoba real estate agents split the commission with their clients 50:50.
Therefore, if a seller sells a house for $550,000, 2.5% will go to the buyer agent.
How Much Does a Real Estate Agent Make in Ontario?
The salary of a real estate agent is highly dependent on the number of transactions they handle.
The average real estate agent in Canada earns around $300 per transaction.
This is much lower than the average for the United States.
Brokerages have various legal obligations and provide different services for agents, charging a certain percentage of the commission.
They usually charge about 15 percent of an agent’s monthly income as “desk fees.”
Average Real Estate Agent Commissions in Canada
When selling a home, it is crucial to understand the fees involved.
Real estate agents usually charge a percentage of the sale price as commissions.
This can vary from 3% to 7%, but it is essential to know the average commission before hiring an agent.
The commissions charged by an agent will impact your earnings significantly.
In Ontario, the commissions are paid by the seller.
These commissions are split between the listing agent and the buyer’s agent.
In addition, the commission is contingent on the home’s sale in Ontario.
That means the agent will not receive a commission if the home doesn’t sell.
However, unlike in many other jurisdictions, the Real Estate Council of Ontario (RECO) does not allow agents to charge a sliding scale.
The Canadian Real Estate Association reports that 58,645 homes were sold in August, an increase of 33.5% over the same month last year.
While this is down from July’s 62,355 home sales, it still marks a high.
The COVID-19 pandemic is thought to have sped up the pace of sales in the province.
There are many ways to increase a real estate agent’s income.
For example, many brokers offer a fixed commission structure to their agents, while others use a graduated split.
However, most brokers will support an agent who requests to change the commission structure, but the broker must have a compelling reason and complex numbers to support the change.
Average Real Estate Agent Salary in Newfoundland and Labrador
Average real estate agent salaries in Newfoundland and Labrador vary based on years of experience.
The lowest paid earn approximately CAD 56,300 a year while the highest paid to make nearly CAD 170,000.
The average commission rate is about 5%.
The employment outlook for real estate agents in Newfoundland and Labrador is positive.
There will be a growth in jobs for this profession over the next five years.
Currently, 53% of agents have a high school education.
However, the cost of living in St. John’s, Newfoundland & Labrador is higher than the national average.
These costs include housing, transportation, utilities, and taxes.
To enter the real estate industry, real estate agents must apply under the Federal Skilled Worker Program (FSWP).
To be accepted, an applicant must score at least 67 points on the Comprehensive Ranking System (CRS).
Once approved, an agent must meet several other requirements before being able to work in Canada.
The salary for a real estate agent in Newfoundland and Labrador ranges from $24,746 to $134,783.
The commission is split 50/50 between the buyer agent and the listing agent.
Average Real Estate Agent Salary in Toronto
Toronto’s average real estate agent salary is just under $40k annually.
The average agent does four to five transactions annually and earns around $8k to $12k per deal.
In addition, agents must pay taxes that range from 25% to 30% of their annual salary.
Moreover, many realtors in the city struggle to find work.
They are not well educated, and most had failed to make it in the real world before getting into real estate.
As a result, most of them struggle for years before getting a decent income.
Although the competition and demand for real estate agents in Toronto are intense, there are opportunities to earn a similar salary in other cities.
In addition to income, agents must have a specific working style and discipline to succeed in their careers.
In addition, Toronto’s living cost is high, so agents can earn more if they sell a higher-priced home than their competitors.
However, despite the high cost of living, some agents still cannot make enough money to survive.
The average commission paid to Toronto real estate agents is approximately $44,000 annually.
This figure is not much different from other areas of the province.
The commission per sale is usually between 3.5%.
The buyer’s agent takes home approximately 2.5% of the commission, while the seller’s agent takes home the remaining 1%.
However, the commission rates for both sides are negotiable.
How Much Does a Commercial Real Estate Agent Make in Canada?
Commissions pay commercial real estate agents.
On average, they make four percent of the sale price of an office deal and two percent of the sale price when it is a tenant leasing deal.
Commissions can range anywhere from a few hundred dollars to thousands of dollars.
The average agent makes approximately $15,000 per year.
There are approximately 135,000 licensed real estate agents in Canada, and 682,900 homes are sold annually.
Choosing a Commercial Real Estate Agent
There are several important factors to consider when choosing a commercial real estate agent in Canada.
First and foremost, you must consider their integrity.
As a representative of the public, a real estate agent must be trustworthy and fair.
This will give clients peace of mind and good endorsements of their skillset.
Secondly, a commercial real estate agent should be persistent and have thick skin.
This type of work requires enormous time and effort to get off the ground.
It can take more than a year to ramp up and become successful.
In addition, there is a high likelihood of rejection, so one must have a thick skin not to take it personally.
Commission structure for commercial real estate agents in Canada varies by area and type of transaction.
The listing agent earns 5% of the sales price, and buyers pay the remaining 50%.
However, some agents offer a lower commission plan, and some even give cash back rebates.
The lower commission plans typically apply to high-end real estate, where the price of a property can justify a low commission rate.
Commissions charged by commercial real estate agents in Canada vary by province, but the average commission rate is around 3%.
In some areas, a real estate agent may receive up to 7% commission.
In some regions, such as British Columbia, commissions are higher than 7%.
In some markets, such as Vancouver, commissions are split between the buying and selling agents.
For example, buyers and sellers in Vancouver share a 6%-8% commission of the first $100,000 of the sale and 1% to 4% on anything over that.
In general, commissions are higher for selling agents than for buying agents.
The government does not regulate commission structures for commercial real estate agents in Canada.
Instead, the provinces regulate the real estate industry.
In Ontario, for example, the standard commission is 5%, split 50/50 between the selling and listing agent.
However, brokerages are allowed to set their commission rates, and it is common for them to do so.
In Canada, an average real estate agent can earn anywhere from $24,173 to $134,783.
However, not all agents have the same sales performance.
For example, a top-performing agent in Ontario can earn more than $200,000 per year.
New Brunswick, Saskatchewan, and other provinces may earn a lower average salary.
While the median income for a real estate agent in Ontario is $45,586 annually, the average real estate broker earns between $50k and $100k yearly.
Therefore, a top-earning commercial real estate agent can earn upwards of $250,000 annually.
Real estate agents work to find suitable properties for their clients, help clients sell existing properties, and collect financial data on properties.
There are no comparable salary statistics for the rest of Canada, but the median income is $45,610.
In Canada, salaries for commercial real estate managers are based on experience.
With less than two years of experience, a commercial real estate manager can earn up to 123,000 CAD.
Those with five to ten years of experience can earn up to 213,800 CAD.
Commercial real estate agents and brokers are found in many locations throughout Canada.
These individuals specialize in selling and leasing properties and provide their clients with the highest level of service.
Some top agencies are Keller Williams, a globally recognized brand, and Fathom Realty, a cloud-based real estate broker.
Fathom is an excellent choice for part-time agents and those interested in flat-fee commission plans.
Coldwell Banker is another well-known firm with offices throughout Canada and franchise opportunities.
In addition to their knowledge of the local real estate market, many agents are known for their innovative marketing methods.
They are known for matching home buyers and sellers with the perfect property.
They are also renowned for successfully negotiating home purchase and sale prices.
These agents are highly specialized in their field and work to educate both sellers and buyers alike.