First-time home buyers in Prince Edward Island: the programs, provincial and federal
What Prince Edward Island offers a first-time buyer, what the federal government adds, and the down payment on the September 2026 average price.
What help is there for first-time home buyers in Prince Edward Island?
PEI offers four kinds of help: no transfer tax for a qualifying first-time buyer at any price, a down payment loan of up to $17,500, up to $2,500 toward closing costs and a rent-to-own pilot — the last three for households earning $110,000 or less. The FHSA and the Home Buyers’ Plan stack on top.
Every program a first-time buyer in PEI can use
| Program | What it gives, and who qualifies |
|---|---|
| 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. |
| Closing Cost Support Program | Up to $2,500 toward closing costs for a first-time buyer as the transfer tax Act defines one, with household income of $110,000 or less and a price up to $350,000. |
| Rent-to-Own Pilot Program | Finance PEI buys an existing home up to $350,000 (HST included) and rents it to you for five years, crediting 40% of the interest portion of the rent to your down payment, up to $33,117; for households earning $110,000 or less who were declined for a mortgage in the last six months. |
| First Home Savings Account (federal) | Contributions of $8,000 a year, up to $40,000, deductible going in and tax-free coming out for a first home. |
| Home Buyers’ Plan (federal) | Up to $60,000 from your RRSP toward a first home; repayment starts in the fifth year after the withdrawal year for withdrawals made 2026–2028, over 15 years. |
| Home Buyers’ Amount (federal) | A $10,000 non-refundable tax credit in the year you buy. |
| First-time buyer GST/HST rebate (federal) | Up to $50,000 on a new home: the federal part of the HST in full up to $1,000,000, phased out to $1,500,000. |
| 30-year insured amortization (CMHC) | First-time buyers can take 30 years instead of 25 on an insured mortgage, lowering the payment. |
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.
Go deeper
The detail, if you want it
The down payment on the September 2026 average price
The insured minimum is the same across Canada: 5% of the first $500,000 and 10% of the remainder (1–2 units). On $409,925 that is $20,496, and the 4% CMHC premium is added to the mortgage, making it $405,006. The transfer tax and registry fees — $5,027 — must be cash.
What lenders look for
An insured mortgage needs a credit score of 600 or more for at least one borrower, housing costs within 39% of gross income and all debts within 44%, measured at the stress-test rate. Program money still has to clear those ratios.
Closing, start to finish
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.
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
Do first-time buyers pay land transfer tax in Prince Edward Island?
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.
What is the minimum down payment for a first home in Prince Edward Island?
The federal rule: 5% of the first $500,000 and 10% of the remainder (1–2 units), on an insured mortgage under $1,500,000. On the September 2026 average price of $409,925 that is $20,496.
Is there a down payment assistance program 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.
Can I use the FHSA and the Home Buyers’ Plan together?
Yes, for the same qualifying home: up to $40,000 from an FHSA and up to $60,000 from an RRSP under the Home Buyers’ Plan, which is repaid over 15 years.
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