Estimate your monthly mortgage payment based on Prince Edward Island home prices. PEI has experienced strong housing demand in recent years, driven by interprovincial migration and its growing reputation as an affordable, lifestyle-focused alternative to larger Canadian cities.
The average home price in PEI is approximately $365,000. With a minimum down payment of $18,250 (5%) and CMHC insurance, the total mortgage would be approximately $360,411. At a 4.25% interest rate over 25 years, the monthly mortgage payment would be $1,949.
5-year term summary:
25-year summary:
PEI mortgage payment examples
| Home Price | Down Payment | Mortgage + CMHC | Monthly at 4% | Monthly at 5% | Monthly at 6% |
|---|---|---|---|---|---|
| $200,000 | $20,000 | $185,580 | $978 | $1,084 | $1,194 |
| $280,000 | $28,000 | $259,896 | $1,370 | $1,519 | $1,674 |
| $365,000 | $36,500 | $338,654 | $1,785 | $1,978 | $2,181 |
| $450,000 | $45,000 | $417,825 | $2,202 | $2,441 | $2,690 |
PEI real property transfer tax
PEI charges a flat real property transfer tax of 1% of the greater of the purchase price or assessed value.
Example: On a $365,000 home, the transfer tax would be $3,650.
First-time homebuyer exemption
First-time buyers are exempt from PEI’s property transfer tax on homes with a purchase price under $200,000. For homes above $200,000, the full 1% applies (no partial exemption).
Non-resident land transfer tax
PEI charges a non-resident land transfer tax on property purchases by individuals who are not residents of PEI. This is in addition to the standard 1% tax.
PEI property tax rates
| Municipality | Approximate Tax Rate | Annual Tax on $365,000 Home |
|---|---|---|
| Charlottetown | 0.74% | $2,701 |
| Summerside | 0.73% | $2,665 |
| Outside municipalities | Provincial rate ~0.90% | $3,285 |
PEI also charges a provincial property tax on properties outside of incorporated municipalities, which is generally higher than municipal rates in Charlottetown and Summerside.
PEI housing cost breakdown
| Cost Category | Typical Monthly Range |
|---|---|
| Mortgage payment (on average home) | $1,850 – $2,100 |
| Property taxes | $225 – $275 |
| Home insurance | $80 – $150 |
| Utilities & heating | $200 – $400 |
| Maintenance (1% of value/year) | $305 – $365 |
Total estimated monthly cost: $2,660 – $3,290
PEI-specific homebuyer considerations
- HST on new construction — PEI charges 15% HST (5% federal + 10% provincial). The GST/HST rebate applies to new homes.
- Heating costs — PEI relies heavily on oil and electric heat. Budget $2,000–$3,500/year for heating. Heat pump adoption is growing rapidly.
- Non-resident restrictions — PEI historically limited non-resident land ownership. While rules have relaxed, non-residents face additional transfer taxes.
- Septic and well — Many homes outside Charlottetown use private septic systems and wells. Budget for maintenance and potential upgrades.
- First Home Savings Account (FHSA) — See the FHSA calculator.
PEI housing market overview
- Charlottetown — The main market, with average prices around $380,000–$400,000. Growing immigration and interprovincial migration have driven up demand.
- Summerside — More affordable alternative at $300,000–$330,000.
- Rural PEI — Very affordable, with homes available for $200,000–$280,000.
Related calculators
- PEI Property Transfer Tax Calculator — Calculate your PEI transfer tax
- Mortgage Affordability Calculator — How much house can you afford?
- Closing Costs Calculator — Estimate all purchase costs