First Time Home Buyer Charlottetown PEI

Your complete guide to buying your first home in Charlottetown, PEI — from provincial rebates and federal programs to down payment tips and what to expect.

PEI First-Time Buyer Land Transfer Tax Rebate

One of the most valuable programs for first-time buyers in Charlottetown is the PEI Land Transfer Tax (LTT) rebate. First-time buyers can receive a rebate of up to $2,000 on the provincial LTT. Since PEI charges 1% on the full purchase price, this rebate effectively covers the first $200,000 of LTT on your purchase. On a typical $380,000 Charlottetown home, you'd pay $3,800 in LTT and receive back up to $2,000 — a net LTT cost of $1,800.

To qualify, you must be a Canadian citizen or permanent resident, be purchasing your first home, intend to use the property as your principal residence, and not have previously owned a home anywhere in Canada.

Federal First-Time Buyer Programs

• First Home Savings Account (FHSA) — Contribute up to $8,000/year (lifetime $40,000), get a tax deduction, grow tax-free, withdraw tax-free for a qualifying home purchase. The most powerful first-time buyer tool available in 2025.
• Home Buyers' Plan (HBP) — Withdraw up to $35,000 from your RRSP tax-free for a first home purchase ($70,000 per couple). Must repay over 15 years.
• First-Time Home Buyer Tax Credit — Federal non-refundable tax credit worth up to $1,500 on your first home purchase.
• 30-Year Amortization — As of 2024, first-time buyers purchasing new builds can access 30-year amortization with CMHC-insured mortgages, reducing monthly payments.

Down Payment Requirements in Charlottetown

Purchase Price	Minimum Down Payment	CMHC Insurance	Min. Income (approx.)
$380,000	$23,000 (6.05%)	Required	~$85,000/yr
$380,000	$38,000 (10%)	Required	~$80,000/yr
$380,000	$76,000 (20%)	Not required	~$75,000/yr

Income estimates assume 25-year amortization at ~4.99% with stress test at 6.99%. Speak with a mortgage professional for your specific situation.

Closing Costs for Charlottetown First-Time Buyers

• PEI Land Transfer Tax: 1% of purchase price (~$3,800 on $380K, less $2,000 rebate)
• Legal fees and disbursements: $1,500–$2,500
• Home inspection: $400–$600
• Title insurance: $200–$400
• Home insurance (first year): $800–$1,500
• Moving costs: $1,000–$5,000 depending on distance
• Total estimated closing costs: $4,000–$100

First-Time Buyer Tips for Charlottetown

• Open an FHSA immediately and contribute the maximum — even one year of growth helps
• Get pre-approved by at least two lenders to compare rates
• Consider hiring a buyer's agent — their commission is typically paid by the seller
• Have a home inspection even in competitive markets — it's critical on older Island homes
• Check City of Charlottetown property tax rates for your target neighbourhood
• Budget for utility costs — PEI heating costs (oil and heat pumps) vary significantly