What Is This?

In most real estate transactions, there are two real estate brokerages involved:
a Listing Brokerage and a Selling Brokerage. Both companies are represented
by agents, who work directly with clients. The Listing Brokerage charges a
commission as payment for listing a home which is usually split with the Selling Brokerage (knows as co-operating commission). When you choose a Homefrog network agent to represent you in buying or selling property, we will rebate you money from the commission earned by the brokerage which represented you. Similarly, our rebates for new-construction homes and condos comes from the commission that most builders are willing to pay to Selling brokerages who find them buyers.

Just as commissions that sellers pay are always negotiable, so too are rebates for buyers and sellers. Our goal is to save you the most amount of money so we will shop your business among qualified agents in your area who are participating in the HomeFrog rebate program. Rebates will generally range from 25-50 percent of the commission received by the brokerage representing you which is approximately equivalent to 0.5%-1.5% of the purchase price. The Rebate cheque is sent after we receive our referral fee from the brokerage, and you can expect to receive your cheque within 2-3 weeks after closing.

The rebates are calculated on gross commissions (including any bonus commissions paid by the builder for new homes and condos) received by the brokerage which represents you before expenses or deductions so you know you are getting the maximum rebate possible. Rebates will be exclusive of GST/HST or any other tax.

For buyers, it is important to realize that the price you end up paying would be the same even if you didn’t get the rebate (since the rebate you didn’t get would go to the buying brokerage or in the case of a new home/condo the builder would just keep that money) so you are practically burning money if you don’t get a real estate commission rebate when buying a home!

Here are some examples of the rebate you could potentially receive through the HomeFrog.ca rebate program:

Example 2: Selling and Buying
First rebate cheque to you:	$1212.50
Purchase Price of new home:	$300,000
2.5% Commission paid to Selling Brokerage:	$7,500
25% referral fee (of selling brokerage commission):	$1,875
HomeFrog fee:	($350)
Second rebate cheque to you:	$1525
Total rebate cheques received:	$2737.50
Net cost to you of selling your home ($12500-$2737.50):	$9762.50
Selling Price of current home:	$250,000
5% commission paid by you to listing brokerage: 2.5% paid to Listing Brokerage $6,250 2.5% paid to Selling Brokerage $6,250	$12,500
25% referral fee (of Listing Brokerage commission):	$1562.50
HomeFrog fee:	($350)

The amounts in the table above are merely examples and do not guarantee any rebate that you will receive by the HomeFrog Rebate program. Some listing brokerages pay more or less than 2.5% so your final rebate may be more or less than the data in the table.