Prince Edward Island mortgage rates.

Yes, and it is more generous than most summaries suggest: an eligible first-time buyer pays no Real Property Transfer Tax at all, at any purchase price. The $200,000 cap still quoted widely online was removed in 2016. What you do have to meet are the residency and first-time tests — Canadian citizenship or permanent residence; either six continuous months of principal residence in PEI immediately before registration or income tax filed here in two of the six preceding years; never having held a registered interest in a principal residence in any jurisdiction; and never having claimed this exemption before. You complete a notarised Declaration form at closing. At Charlottetown prices that is a four-figure saving the standard 1.0% rate would otherwise cost you.

PEI's Lands Protection Act requires non-residents (defined narrowly — includes non-PEI Canadians for properties exceeding 5 acres or 165 feet of shoreline) to seek approval from the Island Regulatory and Appeals Commission. Canadian buyers from other provinces can purchase most residential properties without restriction; large rural or waterfront properties trigger the review.

Exactly $4,000 — flat 1.0% — if you are not a first-time buyer. An eligible first-time buyer pays nothing at any price, so on this purchase the tax is $0; the price cap often quoted alongside this exemption was removed in 2016. Bear in mind PEI does not have a tiered tax like Ontario or BC, so for everyone else the cost is the same per dollar across all price points.

Charlottetown has seen the strongest price growth in PEI since 2020, driven by in-migration and a strong tourist-rental market. Short-term-rental investor files (Airbnb-style) are common but face increasing municipal regulation — check current bylaws before committing capital.