PEI Mortgage Calculator 2021
Mortgage Costs Over 5-Year Term
Your land transfer tax could be lower if you are a first-time home buyer
PEI Land Transfer Tax
Also known in the province as the “Real Property Transfer Tax”, this covers all types of real property purchases in PEI. This tax is paid at the time of registration, and is charged at a flat rate of 1% of either the purchase price, or the appraised value; whichever is higher.
This means that for a $300,000 property, the transfer tax incurred will be $3000. For any property with a value below $30,000, this transfer tax is not applied.
PEI’s First Time Home Buyer Incentives
The two main programs in PEI for first time home buyers are:
- PEI’s First Time Buyer Transfer Tax Exemption - This program allows first time buyers to not pay any transfer tax on the purchase of their first home. This applies to all values, from homes costing $100,000, to one's costing $1,000,000.
- PEI’s Down Payment Assistance Program - To help first time buyers with down payments, this program offers an interest free loan for up to 5% of the purchase price. The maximum amount you may be eligible for is a $12,500 loan. To qualify, you will need an income below $85,000, and a purchase price below $250,000.
Similar to other provinces, the main closing costs that buyers can expect to pay in PEI are:
- Property appraisal fees,
- Property survey fees,
- Title insurance,
- Government registration fees, and
- Home inspection costs
Housing Prices in PEI
Along with neighbouring provinces Nova Scotia and New Brunswick, housing prices in PEI have soared. The average price for a home was $239,070 in April of 2020, however one year later that average price is now $342,631. This represents a huge 43.3% increase year over year!
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Cost of Living in PEI
Other than the cost of electricity, where PEI residents pay 17.4 cents per Kilowatt Hour (KWH), the cost of living in the province is very affordable. Especially noteworthy is the cost of preschool at ~$536 per month, one of the lowest rates in Canada.
As the smallest province in Canada, with a population of 159,713 people, PEI has seen steady population gains, from 145,202 people 5 years ago. Over the long term, the PEI government is projecting for the population to reach 239,694 people by 2060, with the growth coming from international and inter-provincial immigration.