Buying a home in Prince Edward Island: land transfer tax, rebates and first-time buyer help

Land transfer tax or registration fees in Prince Edward Island, worked examples, first-time buyer relief, federal help (FHSA, HBP) and down payment rules.

The big picture: what buying costs beyond the price

Buying a home involves a down payment, closing costs and then your mortgage payments. Closing costs are paid on the day you take possession and usually include a land transfer tax (or registration fees), your lawyer or notary, title insurance, adjustments for property taxes and utilities already paid by the seller, and a home inspection if you ordered one. Plan for them in cash: they cannot be added to a regular mortgage.

Land transfer tax and fees in Prince Edward Island

Prince Edward Island charges a real property transfer tax of 1% of the greater of the price and the assessed value, with an exemption for first-time home buyers.

Purchase price	Tax before relief	First-time buyer relief	You pay
$300,000	$3,000	–	$3,000
$450,000	$4,500	–	$4,500
$600,000	$6,000	–	$6,000

Conditions of the first-time buyer exemption (all must be met)

You are at least 18, and a Canadian citizen or permanent resident.
You lived in P.E.I. as your main residence for at least 6 consecutive months (183 days) just before the deed is registered, or you were subject to P.E.I. tax and filed a return in at least 2 of the previous 6 tax years. If you do not meet the 183-day test, you pay the tax and can claim a refund after living in the home for 183 consecutive days.
You have never held a registered interest in a property that was your main residence, anywhere in the world.
You have never claimed the exemption before.
You occupy the property as your main residence for at least 183 consecutive days after registration, or the exemption is lost.
Every purchaser named on the deed meets these conditions.

Source: PEI: Real Property Transfer Tax and the Real Property Transfer Tax Act ↗, read on 2026-11-13.

Calculate your own case

Use the land transfer tax calculator with your price, and the mortgage calculator to see your monthly payment.

Federal help for first-time buyers

First Home Savings Account (FHSA): contributions are deductible like an RRSP and withdrawals to buy a first home are tax-free. You get $8,000 of room in the year you open your first account (lifetime limit $40,000). CRA page ↗
Home Buyers’ Plan (HBP): withdraw up to $60,000 from your RRSPs to buy a home and repay it over time without tax on the withdrawal. CRA page ↗
First-time home buyers’ GST/HST rebate on new homes: the GST is eliminated on a new home up to $1,000,000 and reduced between $1,000,000 and $1,500,000, saving up to $50,000. It generally applies to agreements of purchase and sale signed on or after March 20, 2025 and before 2031 (Bill C-4, Royal Assent March 12, 2026). Finance Canada ↗
Home Buyers’ Amount: a non-refundable tax credit based on up to $10,000 (so up to $1,500 of tax) when you buy a qualifying home. CRA page ↗

Down payment and insured mortgages

If you put down less than 20%, your mortgage must be insured (CMHC, Sagen or Canada Guaranty) and the premium is added to the mortgage. The minimum down payment is 5% of the first $500,000 of the price and 10% of the part between $500,000 and $1,500,000; homes above $1,500,000 require 20% down. First-time buyers and buyers of new homes can choose a 30-year amortization on an insured mortgage. The $1,500,000 cap and the 30-year amortization came into force on December 15, 2024 (Finance Canada release below); confirm the current terms with your lender.

Source: Finance Canada: mortgage reforms in force December 15, 2024 ↗, read on 2026-11-13.

Government platforms and next steps

Open an FHSA at your bank and start saving, if you have not already.
Get a mortgage pre-approval and calculate your closing costs with the calculators above.
Hire a lawyer (or notary) before you sign: they check the title, collect the tax and register the deed.
Claim your federal Home Buyers’ Amount on your next tax return.

All programs and benefits →