PEI First Time Buyer Programs 2025

A complete list of provincial and federal first-time homebuyer programs available to Prince Edward Island residents in 2025.

Provincial Programs — PEI

1. PEI Land Transfer Tax Rebate (up to $2,000)

PEI's most direct first-time buyer benefit. When you purchase your first home in PEI, you can receive a rebate of up to $2,000 on the provincial Land Transfer Tax (1% of purchase price). Your real estate lawyer applies this at closing — no separate application required. On a $380,000 home, this reduces your $3,800 LTT to $1,800 net.

Federal Programs Available to PEI Buyers

2. First Home Savings Account (FHSA)

Introduced in 2023, the FHSA is the most powerful first-time buyer savings tool ever created in Canada. Contributions of up to $8,000/year (lifetime maximum $40,000) are tax-deductible (like an RRSP). Funds grow tax-free, and withdrawals for a qualifying first home are also tax-free (like a TFSA). PEI buyers should open an FHSA immediately and contribute the maximum each year while saving for a down payment.

3. Home Buyers' Plan (HBP)

Allows first-time buyers to withdraw up to $35,000 from their RRSP tax-free to put toward a down payment ($70,000 for couples). The funds must be repaid to your RRSP over a 15-year period — failing to repay adds the annual required amount to your taxable income. The HBP can be combined with the FHSA for a combined down payment of up to $75,000 per buyer or $150,000 per couple.

4. First-Time Home Buyer Tax Credit

A federal non-refundable tax credit of $100 (credit amount) generating up to $1,500 in tax savings at the 15% federal rate. Claimed on your tax return in the year of purchase. Both partners in a couple can claim it if they jointly own the home.

5. 30-Year Amortization for First-Time Buyers (New Builds)

As of August 2024, CMHC-insured mortgages with 30-year amortizations are available to first-time buyers purchasing new construction homes. This reduces monthly payments significantly compared to 25-year terms. Starting December 2024, this was extended to all first-time buyers purchasing any property under $1.5 million.

6. GST/HST New Housing Rebate

If you purchase a newly constructed home in PEI, you may be eligible for a partial rebate of the GST/HST paid. The federal GST rebate provides up to 36% of the GST paid on homes under $350,000 (phased out to $450,000). PEI's HST component rebate may also apply. Your lawyer or builder will advise.

Program Summary Table

Program	Maximum Benefit	Type	Level
PEI LTT Rebate	$2,000	Closing cost reduction	Provincial
FHSA	$40,000 tax-free savings	Savings account	Federal
Home Buyers' Plan	$35,000 ($70K couple)	RRSP withdrawal	Federal
FTB Tax Credit	$1,500 tax savings	Tax credit	Federal
30-Year Amortization	Lower monthly payments	Mortgage structure	Federal
GST/HST Rebate	Up to 36% of GST	Tax rebate (new builds)	Federal

Tips for Maximizing PEI First-Time Buyer Benefits

• Open an FHSA today — even if you're years from buying, every contribution year counts
• Contribute to both RRSP (for HBP) and FHSA simultaneously for maximum flexibility
• Combine HBP + FHSA for a $75,000 down payment per person without touching other savings
• Get mortgage pre-approval before house hunting in PEI's competitive sub-$420K market
• Work with a PEI real estate lawyer familiar with first-time buyer rebates at closing