Updated March 2026 · Canadian brokerage fees · 8-minute read
Choosing the right brokerage is one of the most important financial decisions a Canadian real estate agent makes. The difference between a 50/50 split at a traditional franchise and a capped model can mean tens of thousands of dollars per year. This guide breaks down every brokerage fee model used in Canada and helps you calculate which structure works best for your production level.
Brokerage Commission Models in Canada
Traditional Split (50/50, 60/40, or 70/30)
Split Model
The oldest model in Canadian real estate. The brokerage and agent share every commission. New agents often start at 50/50 or 60/40 and may improve their split as they prove production. Common at some independent brokerages and smaller franchises. The brokerage keeps their split regardless of your volume — there is no cap.
Graduated Split
Split Model — Volume-Based
Your split improves as you close more deals. A typical structure: 60/40 for the first $50,000 in commissions, then 70/30 up to $100,000, then 80/20 above $100,000, resetting annually. Rewards high producers but still takes a percentage forever if you don't hit the top tier.
Capped Commission Model
Cap Model — eXp, Keller Williams, Some RE/MAX
Pay a split (typically 70/30 or 80/20) until you've paid the brokerage a set annual cap (e.g., $23,000 at KW, varies at eXp). After hitting the cap, you keep 100% of commissions for the rest of the year. Ideal for high producers who can hit the cap by mid-year. The cap resets every anniversary year.
Desk Fee / Monthly Fee Model
Flat Fee Model
Pay a fixed monthly or annual fee (typically $500–$2,500/month) and keep 100% of your commissions. No split on individual transactions. Best for consistent producers who can cover the fixed overhead. Works poorly for part-time agents or those with irregular transaction flow.
100% Commission / Virtual Brokerage
Transaction Fee Model
Keep 100% of each commission and pay a small per-transaction fee ($200–$500 per deal). Some charge an annual membership fee of $1,000–$3,000. Minimal brokerage support — you handle your own marketing, admin, and training. Growing fast in Canada through virtual brokerages and online platforms.
Canadian Brokerage Comparison (2025)
| Brokerage | Model | Typical Split/Fee | Cap | Franchise Fee |
|---|
| RE/MAX | Split or Desk Fee | 70/30 to 95/5 | Varies by office | Yes (varies) |
| Royal LePage | Split | 60/40 to 80/20 | Some offices | Yes |
| Century 21 | Split | 50/50 to 70/30 | Rare | Yes |
| Keller Williams | Cap Model | 70/30 to cap | ~$23,000/yr | Yes |
| eXp Realty | Cap Model | 80/20 to cap | ~$16,000/yr | No (virtual) |
| Sutton Group | Split or Desk | Varies by office | Some | Yes |
| Independent | Desk Fee | $500–$2,500/mo | N/A | No |
| Virtual/100% | Transaction Fee | $200–$500/tx | N/A | No |
Which Model Is Best for Your Production Level?
- Under 5 transactions/year: Traditional split or desk-fee may work. Avoid high monthly desk fees that eat into sparse income.
- 5–10 transactions/year: A capped model starts to make sense. Calculate when you'd hit the cap and how much you keep after.
- 10–20 transactions/year: Capped models (KW, eXp) typically win. You hit the cap mid-year and keep 100% for months.
- 20+ transactions/year: 100% commission with a transaction fee or desk fee model maximizes income. Franchise overhead is dead weight at high volume.
The Hidden Costs of Brokerage Fees
Beyond the headline split, watch for: technology fees ($50–$200/mo), E&O insurance top-up fees, marketing fund levies, franchise fees passed through, administrative fees per transaction, and CRM/software bundling charges. Always ask for a complete fee schedule in writing before signing with a brokerage. The advertised split never tells the whole story.
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FAQs
Are brokerage fees tax deductible?
Yes. Desk fees, monthly brokerage fees, and the brokerage's portion of your commission split (if reported as gross income on your T4A) are all deductible as business expenses on your T2125. See our
Realtor Deductions Guide.
Can I negotiate my split with a brokerage?
Absolutely. Brokerages compete for productive agents. If you have a track record of 10+ transactions per year, you have real leverage to negotiate a better split, lower desk fee, or faster cap. Bring your production numbers to the conversation.
What is a franchise fee in real estate?
Franchise fees are charges from the national brand (RE/MAX, Century 21, Royal LePage) passed through the franchise office to individual agents. These are typically 1%–6% of each commission and cover brand licensing, national advertising, and technology platforms.
Brokerage fee structures vary widely by office and are negotiable. Figures cited are estimates only. Always get a complete written fee schedule before joining any brokerage.