You’re not alone if you’ve seen housing prices skyrocket in recent years and thought about becoming a real estate agent. With all the money flowing into the industry, there is a lot of curiosity about the salaries of real estate agents. Being a real estate agent can be a potentially lucrative career, but it is not as simple as getting your license and instantly getting that coveted 6 figure salary. We’ll break down the numbers for you.
The first thing to realize is that looking at the salary of a real estate agent in Canada is too broad a task. Canada is an incredibly diverse country, and real estate values can vary quite a bit from province to province and within a region. For example, in Sudbury, Ontario, the average price of a home was $398 698 – compare that to the now-average home price of $1.29 million in Toronto. In September 2021, the average cost of a house in Alberta was $460 100 and was $262 200 in New Brunswick. So, when you look at the statistic that the average Canadian home price is now $816k – just know that as a real estate agent getting paid as commission, the houses you sell can vary in price within Canada and each province.
Commission, as discussed above, can vary depending on where you are selling houses. From the consumer perspective, it is common knowledge that a real estate agent’s commission is usually 4-7%. Just by going off those numbers, commission can vary a lot based on the location. See how it can change with some of the areas discussed above.
| Location | Average House Price | 4% Commission | 7% Commission |
| Sudbury, Ontario | $398 698 | $15 947.92 | $27 908.86 |
| Toronto, Ontario | $1 290 000 | $51 600 | $90 300 |
| Alberta (entire province) | $460 100 | $18 404 | $32 207 |
| New Brunswick (entire province) | $262 200 | $10 488 | $18 354 |
| Canada (entire country) | $816 000 | $32 640 | $57 210 |
As one can imagine, the highest value was from Toronto at $90 300, and the lowest value was from New Brunswick at $10 488. Making almost six figures on one sale sounds excellent – but also keep in mind that most of the time, there are two real estate agents involved with a sale: the seller’s agent and the buyer’s agent. Usually, it is divided evenly between both agents (so say for a 7% commission, both agents get 3.5% per sale), but alternative splits can be arranged.
Presuming an even split between two agents, the highest commission value, $90 300, now becomes $45 150, and the lowest commission value, $10 488, now becomes $5244. Again – earnings per sale aren’t so simple. For example – there is more to real estate than selling houses. In Toronto, the average condo is $710 087 – over $500 000 less than the average price of a house. Two real estate agents can make 25 sales a year – but perhaps one sold all houses, and the other sold all condos. 3.5% of 25 average priced condos are quite different than 3.5% of 25 average priced homes. Then, keep in mind that often the fee will be split between the agent and the agent’s broker. So, the $45 150 or $5244 gets potentially divided in two again. The buyer’s agent and their brokerage split their part, and the seller’s agent and their brokerage split their part, so each gets $22 575 in the high-end scenario and $2622 in the low-end scenario.
Outside of specializing in condos or houses, perhaps you’ll be a luxury real estate and can on the regular earn up to $80 000 a transaction. An experienced, full-time luxury real estate agent will not be producing as many transactions as someone who specializes in non-luxury real estate. Then also, keep in mind that real estate agents are not always married to their commission rate. Sometimes they will take .5% off or so for a friend – maybe they’ll increase their commission rate if they feel like they haven’t been charging enough. Then, do not forget that you’ll have to pay your yearly dues to your provincial real estate agent association and the Canadian Real Estate Association (CREA). CREA’s annual dues are $310, share your commission with your office and pay for marketing, signage, productivity software (such as CRM systems etc) to keep you organized and on top of your game.
Numbers are one thing in theory and another thing in practice.
It is also worth keeping in mind that commission on the sale price of a property is not the only way that real estate agents can make money. In Ontario, for example, there are three different fee structures. The first is for an agent to charge a fixed amount: you are not charging a percentage but a specific number, say $5000 for a $500 000 home. The second fee structure is the typical percentage off the sales price. The third and final fee structure combines a lump sum and a percentage of the sales price (i.e., $5000 and 1% off the $500 000 sales). Agents must, of course, be transparent and upfront about the fee structure they are charging clients.
If you do a cursory google search of “average real estate agent salary,” you will also see that the numbers vary quite a bit. Indeed shows that the average salary in Canada for a real estate agent is $121 701, Payscale lists $60 820, talent.com says $100 000 and ZipRecruiter details $78 051 (in Ontario). What amount can you trust?
Well, keep in mind that most of the salary figures you see are from a select sample size, usually of employers who posted job listings on those websites. Therefore, they are not inaccurate per se – one can reasonably presume they represent the average salaries on those websites. However, they are not necessarily representative of Canada’s true average or median real estate salary – in fact, that information is extremely hard to find. So, the figures from the job sites can be helpful – but not definitive.
Understandably, if you want to start a career in real estate, you will want to know what you would make. The first thing is to narrow down where you want to practice real estate. For the next steps – figuring out what type of real estate would you specialize in or what most first-year real estate agents make, are questions for a mentor. Finding a seasoned real estate professional who can give you a realistic picture of the industry competition you can face and what you can expect to earn in your first year would be invaluable. The average real estate agent salary data is spotty, but a trustworthy mentor can provide clarity.