First-Time Home Buyer Mortgages in Prince Edward Island
Minimum down payment, the land transfer tax rebate you are owed, and what income the stress test actually demands in Prince Edward Island.
Who this covers
- Buyers who have not owned a home in the last four years
- Anyone using an FHSA or the Home Buyers’ Plan for the down payment
- Households trying to work out whether the price they want is reachable
What lenders look for
| 5% down below $500,000 | The statutory minimum. Between $500,000 and $1.5M it is 5% on the first $500,000 and 10% on the rest. At $1.5M and above it is 20%. |
| Default insurance | Mandatory under 20% down. The premium is added to the mortgage; the provincial sales tax on it is not and must be cash at closing. |
| FHSA | Up to $8,000 a year and $40,000 lifetime, deductible going in and tax-free coming out for a first home. The strongest first-time buyer instrument available. |
| Home Buyers’ Plan | Up to $60,000 from an RRSP, repayable over 15 years. Stacks with the FHSA. |
Prince Edward Island rates for this file
First-time buyers with less than 20% down get insured pricing, which is the lowest on the board. Putting more down can genuinely produce a worse rate.
| Lender | Type | 5-year fixed |
|---|---|---|
| Strive Capital | Monoline | 3.87% |
| MCAP | Monoline | 3.88% |
| First National | Monoline | 3.89% |
| Merix Financial | Monoline | 3.90% |
| RFA Mortgage Corporation | Monoline | 3.91% |
Lowest five-year fixed on the insured shelf, 2026-08-21. Full board →
What a typical purchase looks like
| Typical price | $500,000 |
| Minimum down payment | $25,000 |
| RPTT | $5,000 |
National figure — we do not yet track a market in this province. Calculate yours →
Get notified 90 days before your renewal
Your lender contacts you at 30 days, when you have no time to shop. We reach you at 90 — early enough to lock a hold and personalize your offers.
Questions
Is 20% down better than 5%?
Not always. Crossing 20% removes the insurance premium but moves you off insured pricing onto insurable or uninsured, where rates are higher. Between roughly 15% and 20% the arithmetic often favours putting less down. It is worth running both.
What income do I need?
It depends on price, property tax and your other debt, and it is calculated at the stress-test rate rather than the rate you pay. Use the affordability calculator for your market rather than a national rule of thumb.
Do I qualify as first-time if I owned a home years ago?
For most programs, yes — the usual test is not having occupied a home you or your spouse owned in the current year or the four preceding years. Provincial land transfer tax rebates sometimes use a stricter definition.
What does it cost to close in Prince Edward Island?
Real property transfer tax on a $500,000 purchase comes to $5,000, due in cash on closing. Full Prince Edward Island closing costs →
First-Time Buyer in Prince Edward Island?
Send us the file and a licensed broker comes back with what is realistically available — which lenders will take it, at what rate, and what they will want to see.
Send us the file