Buying a house in Prince Edward Island: the rules and the costs
The rules that cost money in Prince Edward Island and nowhere else, each with its source — then one page each for the transfer tax, first-time buyers, closing costs and the market.
What do I need to know to buy a house in Prince Edward Island?
PEI charges a 1% real property transfer tax on the greater of the price and the assessed value, but a qualifying first-time buyer pays none, with no price cap. Registry fees top out at $463.65 a document, and three provincial programs help first-time buyers earning $110,000 or less. Down payment rules and the stress test are federal.
The PEI rules, one page each
Land transfer tax
The real property transfer tax: rate, base, who pays, exemptions, worked at six prices.
First-time home buyers
Down Payment Assistance Program, Closing Cost Support Program, Rent-to-Own Pilot Program — and the federal layers that stack on top.
Closing costs
Every line of the cash to close on the September 2026 average price, who pays it and what is financed.
Housing market
September 2026: average price, sales and inventory from the Prince Edward Island Real Estate Association.
Mortgage broker
How a Prince Edward Island mortgage works with us, remotely from Bedford, and what buying costs.
Go deeper
The detail, if you want it
Property tax after you buy
The Province bills property tax on one statement: its own rate on a home is $1.70 per $100 of assessment, owners who live in PEI 183 days a year get a $0.70 credit, and each municipality adds its own rate. The owner-occupied assessment cap (CPI or 5%, whichever is lower) starts again when you buy.
Who closes, and how
A lawyer closes: the title search at the Registry of Deeds (offices in Charlottetown and Summerside), the purchaser’s affidavit, the transfer tax and the registration of the deed and the mortgage.
Rules particular to PEI
More than five acres: A non-resident, or any corporation, needs Cabinet approval through the Island Regulatory and Appeals Commission to hold more than five acres or 165 feet of shore frontage (Lands Protection Act).
Short-term rentals: Renting any part of the home for less than 30 days ends its owner-occupied status, and with it the assessment cap.
Why a broker
Licensed, independent, paid by the lender
- Licensed across Atlantic Canada Indi Mortgage brokerage licences in NS, NB and NL (PEI has no licensing regime); Riley Oickle, Associate Mortgage Broker, NS 3001134
- $0 broker fee On a standard residential mortgage the lender pays, not you
- 33 lenders, one application Banks, credit unions, monolines; one credit check
Questions people ask
How much cash do I need to buy a house in Prince Edward Island?
On the September 2026 average price of $409,925: $20,496 minimum down and $5,027 in transfer tax and registry fees. Legal, appraisal and inspection come on top; Riley’s rule of thumb is 1% of the price, about $4,099. The CMHC premium is financed, not paid in cash.
Is there a land transfer tax in Prince Edward Island?
1% of the greater of the purchase price and the assessed value, paid by the purchaser when the deed is registered; a transfer of $30,000 or less pays none. A first-time buyer pays no transfer tax, and there is no price cap: every buyer on the deed must be a citizen or permanent resident, have lived in PEI for six months (or filed PEI tax returns in two of the last six years), never have owned a principal residence, and live in the home for 183 consecutive days.
Is there help for first-time buyers in Prince Edward Island?
Down Payment Assistance Program (Finance PEI): A loan of up to 5% of the price, to a maximum of $17,500, for the down payment only; it is conditionally interest-free (the interest is forgiven once the loan is repaid in full, over ten years), and the first year’s payments can be deferred. Household income $110,000 or less, price up to $350,000, insured mortgage required; open until 31 March 2031 or until the budget is committed.
Do I need a lawyer to buy a house in Prince Edward Island?
Yes. A lawyer closes: the title search at the Registry of Deeds (offices in Charlottetown and Summerside), the purchaser’s affidavit, the transfer tax and the registration of the deed and the mortgage.
Still unsure? Ask me directly.
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