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All Canada · Canada income tax (incl. PEI)
Prince Edward Island's benchmark home price reached $371,700 in January 2026, up 1.7% year-over-year, with average sales prices around $417,830. PEI's real estate market is unique in Canada — seasonal tourism drives significant vacation home demand, and PEI has non-resident purchase restrictions that limit foreign and out-of-province buyers. Best 5-year fixed insured mortgage rates in PEI follow the national market: 4.39% fixed and 3.60% variable as of November 9, 2026. First-time buyers qualify for a land transfer tax rebate of up to $2,000, with an additional $3,000 rebate for new builds. PEI offers relative affordability versus mainland provinces like Ontario or BC.
Prince Edward Island (PEI): LTT and rebates apply at closing — not in payment results. Defaults ~$371,700 / 20% down.
20.0% of home price
| Down | Down payment | CMHC | Monthly |
|---|---|---|---|
| 5% | $18,585 | $14,125 | $2,032.57 |
| 10% | $37,170 | $10,370 | $1,908.93 |
| 20% | $74,340 | — | $1,645.81 |
| 25% | $92,925 | — | $1,542.94 |
Canadian mortgages use nominal rates compounded semi-annually (converted to an effective annual rate, then to your payment frequency). Chart shows cumulative principal and interest paid each year; ending balance trends down toward zero.
Total interest paid
$196,382
Total amount paid
$493,742
Principal + interest on the loan
Interest vs purchase price
53%
of home price goes to interest (illustrative)
Same loan amount, rate, and amortization as above. Semi-monthly and bi-weekly match your monthly cash flow; accelerated bi-weekly uses half the monthly payment every two weeks (13 monthly equivalents per year).
| Frequency | Payment amount | Total interest | Payoff time | Savings vs monthly |
|---|---|---|---|---|
| Monthly | $1,645.81 | $196,382 | 25 years | — |
| Semi-monthly | $822.90 | $195,543 | 24 years 11 months | $839 |
| Bi-weekly | $759.60 | $195,478 | 25 years | $904 |
| Accelerated bi-weeklyRecommended | $822.90 | $166,600 | 21 years 8 months | $29,782 |
Savings vs monthly shown on wider screens.
| Year | Benchmark Price | Average Sale Price | Change YoY |
|---|---|---|---|
| 2024 | ~$350,000 | ~$376,000 | +4.8% |
| 2025 | ~$365,400 | ~$387,000 | +4.4% |
| Jan 2026 | $371,700 | $417,830 | +1.7% |
| Purchase Price | LTT Rate | Tax on Bracket |
|---|---|---|
| First $30,000 | 1.0% | Up to $300 |
| Above $30,000 | 2.0% | 2% on remainder |
On PEI's benchmark home of $371,700, land transfer tax is approximately $7,134 (1% on the first $30,000 = $300, plus 2% on the remaining $341,700 = $6,834). First-time buyers qualify for a rebate of up to $2,000 on resale homes, and up to $5,000 total ($2,000 + $3,000 bonus) on newly built homes. Net LTT after the $2,000 first-time buyer rebate on a resale home is approximately $5,134.
PEI has unique non-resident land ownership restrictions — one of the few Canadian provinces to limit out-of-province and foreign buyers. The Lands Protection Act restricts non-residents from owning more than 5 acres of land or 165 feet of shore frontage without approval from the Island Regulatory and Appeals Commission (IRAC). This limits large-scale investment purchases and vacation property accumulation by non-residents, helping maintain affordability for local buyers. Canadian residents moving to PEI are generally not affected but should verify their specific situation.
| Home Price | Minimum Down Payment | CMHC Insurance Required |
|---|---|---|
| Up to $500,000 | 5% ($18,585) | Yes |
| $500,001–$999,999 | 5% on first $500K + 10% on remainder | Yes |
| $1,000,000+ | 20% | No |
At PEI's benchmark price of $371,700 with 5% down ($18,585), your insured mortgage is $353,115 plus CMHC premium (~$14,125), totalling approximately $367,240. At an example qualifying rate of 6.04% (a 4.04% contract rate + 2%), you need gross annual income of approximately $69,000–$79,000 to pass the stress test.
PEI's MLS benchmark home price is $371,700 as of January 2026, up 1.7% year-over-year. Average sale prices are higher at approximately $417,830. Charlottetown and surrounding areas command premium prices while rural PEI is more affordable.
PEI charges 1% land transfer tax on the first $30,000 and 2% on amounts above $30,000. On a $371,700 home, LTT is approximately $7,134. First-time buyers qualify for a rebate of up to $2,000 on resale homes and up to $5,000 on newly built homes.
PEI has non-resident land ownership restrictions under the Lands Protection Act. Non-residents are limited to owning 5 acres or 165 feet of shore frontage without approval from IRAC. This restricts large-scale investment and vacation property purchases by non-residents. Canadian residents relocating to PEI are generally not affected.
Yes. PEI offers a land transfer tax rebate of up to $2,000 for first-time buyers of resale homes, and up to $5,000 total ($2,000 + $3,000 new build bonus) for newly constructed homes. Federal programs including the FHSA and Home Buyers' Plan are also available.
Best 5-year fixed insured mortgage rates in PEI follow the national market: 4.39% fixed and 3.60% variable as of November 9, 2026. PEI buyers qualify for the same national mortgage rates as other Canadian provinces.
PEI is unique for several reasons: non-resident purchase restrictions limit foreign investment, seasonal tourism drives strong vacation home demand, and PEI offers relative affordability compared to Ontario or BC. PEI's small size and island geography create a distinct market with limited land supply, supporting long-term price stability.
Educational estimates only. Not a lender pre-approval.