October 21, 2026
Choosing a real estate brokerage in Ontario is not just about finding the highest advertised commission split. For both new and experienced Realtors, the real question is how much commission remains after brokerage fees, franchise royalties, transaction charges, and other expenses.
A brokerage offering a 95/5 commission split may provide significantly better earning potential than one offering 80/20. However, the actual financial benefit depends on the complete fee structure and the services included.
In this guide, we explain how real estate commission splits work in Toronto and across Ontario, compare common brokerage compensation models, and show how Realty 7 offers agents a transparent alternative.
A real estate commission split determines how the commission received by a brokerage is divided between the brokerage and the real estate agent.
For example, under a 95/5 commission split:
The real estate agent receives 95% of the applicable commission.
The brokerage retains 5%.
Under an 80/20 split:
The agent receives 80%.
The brokerage retains 20%.
The difference can become substantial as an agent completes more transactions.
However, commission splits are only one part of the financial picture.
The amount an agent retains depends on the commission earned by the brokerage, the agent’s contractual split, applicable brokerage charges, and business expenses.
Consider an agent earning $100,000 in annual gross commission attributable to their transactions.
| Commission Split | Agent Receives | Brokerage Retains |
|---|---|---|
| 70/30 | $70,000 | $30,000 |
| 80/20 | $80,000 | $20,000 |
| 90/10 | $90,000 | $10,000 |
| 95/5 | $95,000 | $5,000 |
These examples are illustrative and exclude taxes, brokerage fees, regulatory expenses, and other operating costs. They also assume the same commission base for every comparison.
At a 95/5 split, an agent earning $100,000 in gross commission retains $15,000 more before other expenses than under an 80/20 split.
For experienced agents completing multiple transactions annually, understanding this difference is essential when evaluating a brokerage.
A competitive commission split does not necessarily mean low operating costs.
Some real estate brokerages in Toronto and the Greater Toronto Area charge additional fees that can reduce an agent’s net income.
Desk fees are recurring charges associated with brokerage office facilities and overhead.
Agents may be required to pay these fees regardless of whether they complete any transactions.
For new Realtors, part-time agents, and professionals experiencing slower sales periods, recurring fees can create unnecessary financial pressure.
Some franchise brokerages charge royalties or other brand-related fees.
These expenses may be reflected in the brokerage’s compensation structure or charged separately.
Agents should understand the full financial impact of franchise affiliation before joining.
Some brokerages charge an administrative fee each time an agent completes a transaction.
Even relatively small charges can add up over the course of a year.
Depending on the brokerage, agents may encounter annual membership fees, technology subscriptions, marketing charges, or administrative expenses.
Before signing an independent contractor agreement, request a complete written explanation of all brokerage charges.
Realty 7 is an Ontario-based boutique real estate brokerage offering a cloud-based business model designed to reduce unnecessary overhead while maintaining personalized agent support.
Our commission structure is straightforward:
| Transaction Type | Agent’s Share | Brokerage’s Share |
|---|---|---|
| Sales and purchases | 95% | 5% |
| Rental transactions | 90% | 10% |
| Brokerage-generated leads | 50% | 50% |
Realty 7 does not charge:
Monthly desk fees
Annual brokerage fees
Transaction fees
Franchise royalty fees
Hidden brokerage charges
Agents remain responsible for applicable external professional expenses, including regulatory registration, insurance, and any association or board fees that apply to their circumstances.
Our objective is to provide a predictable compensation structure so agents can focus on serving clients and growing their business.
Explore Realty 7’s commission structure and brokerage benefits.
Experienced agents often have established client relationships, referral networks, and independent marketing strategies.
As their transaction volume increases, the financial impact of their brokerage commission split becomes more significant.
A higher agent share can provide greater flexibility to:
Invest in digital advertising and lead generation.
Upgrade photography and listing marketing.
Develop a personal brand.
Expand professional services.
Build financial reserves during slower market conditions.
For an established Realtor who generates most of their own business, a 95/5 brokerage model can be particularly attractive.
However, commission retention should always be considered alongside the quality of brokerage support.
A higher commission split can benefit new Realtors, but financial terms should never be the only consideration.
New agents frequently need assistance with:
Preparing offers and purchase agreements.
Listing documentation.
Client representation agreements.
Regulatory compliance.
Negotiation procedures.
Understanding transaction conditions and deadlines.
A brokerage that offers a high commission split but limited guidance may not be the right fit for every beginner.
Realty 7 combines competitive financial terms with personalized assistance from experienced brokerage leadership.
Our Broker of Record is available to help agents navigate their transactions, review documents, and build confidence as they develop their careers.
Related reading: Best Brokerage for New Realtors in Ontario — available in our Real Estate Career Hub.
Traditional real estate brokerages may maintain physical offices, meeting rooms, reception areas, and other facilities.
These resources can be valuable, but they also create operating expenses.
Cloud-based brokerages use digital tools and remote communication to reduce reliance on permanent office infrastructure.
For agents who already conduct much of their business online, a virtual brokerage can offer greater flexibility and potentially lower brokerage costs.
Realty 7 follows this modern approach while continuing to provide direct assistance to its agents.
The goal is not to eliminate professional support. It is to deliver that support without unnecessary overhead.
Related reading: Cloud Brokerage vs Traditional Brokerage in Ontario — see the next article in our Real Estate Career Hub.
Before transferring to a new brokerage in Toronto or elsewhere in Ontario, ask:
What is my commission split on sales, purchases, and rentals?
Are there monthly, annual, transaction, technology, or franchise fees?
What support will I receive when preparing offers and listings?
Can I contact the Broker of Record when I need assistance?
What happens to pending commissions and active listings if I transfer?
A clear understanding of these details will help you compare brokerage opportunities more effectively.
Realty 7 combines the financial advantages of a cloud-based brokerage with the personalized attention of a boutique organization.
Our approach emphasizes:
Transparent commission splits.
No recurring brokerage desk fees.
Support for new and experienced Realtors.
Direct access to brokerage leadership.
Assistance with offers, listings, and documentation.
Flexible remote working arrangements.
A professional environment focused on long-term relationships.
We believe agents should have the freedom to grow their businesses without unnecessary financial pressure.
There is no single ideal commission split for every agent. A 90/10 or 95/5 arrangement may be attractive, but agents should compare total brokerage fees, support, resources, and contractual terms before making a decision.
Yes. Realty 7 offers a 95/5 split on applicable sales and purchase transactions, a 90/10 split on rentals, and a 50/50 split on brokerage-generated leads.
No. Realty 7 does not charge monthly desk fees, annual brokerage fees, or transaction fees.
Yes. Applicable RECO registration and professional liability insurance costs are separate from brokerage commission splits. Other professional expenses may also apply.
Yes. Realty 7 welcomes registered real estate professionals in Ontario who are interested in competitive commission terms and personalized brokerage support.
A virtual brokerage can be attractive to part-time agents because it offers remote working flexibility. Realty 7's lack of monthly desk fees can also help reduce recurring brokerage overhead.
Your brokerage should support your professional growth while offering fair and transparent compensation.
Whether you are an established Toronto Realtor or a newer Ontario real estate agent, Realty 7 provides a flexible brokerage environment designed around your success.
Ready to explore a better commission structure?
Contact Realty 7 today to discuss joining our brokerage.
Commission examples are illustrative. Actual compensation is governed by the applicable brokerage agreement. Regulatory and other third-party professional costs may apply.
