Closing Cost
Closing costs are the quiet line items that show up right before keys-in-hand day and say, “Hi, we exist too.” 🏡🔑
On PEI, here’s what buyers should realistically expect.
💰 Typical Closing Costs in PEI
Most buyers should budget 1.5% to 4% of the purchase price.
On a $350,000 home, that’s roughly:
👉 $5,250 to $14,000
Now let’s break down where that money actually goes.
⚖️ Legal Fees & Disbursements
Usually $1,500 to $2,500
This covers:
• Title search
• Mortgage registration
• Deed registration
• Lawyer’s professional fee
• Disbursements
Think of your lawyer as the conductor making sure all the paper symphony lands on the right desk.
🏛️ Property Transfer Tax (Land Transfer Tax)
On PEI: 1% of the purchase price
Example:
$350,000 home = $3,500
🎉 First-time buyers may qualify for a full exemption (huge savings if eligible).
🏦 Adjustments (Prepaid Items)
You may need to reimburse the seller for:
• Property taxes
• Oil or propane left in tank
• Condo fees
These vary depending on timing of closing.
🛡️ Default Insurance (If Less Than 20% Down)
If you’re putting under 20% down, CMHC/Sagen insurance applies.
Important:
This is usually added to your mortgage, not paid upfront.
But PST (provincial sales tax) on the insurance premium must be paid in cash at closing.
🔍 Home Inspection
Typically $400 to $700
Paid before closing, but part of your purchase costs.
🏠 Appraisal (If Required)
$300 to $500
Sometimes covered by lender. Sometimes not.
🔐 Title Insurance
Usually $250 to $400
Protects you and your lender from title issues.
💡 Utility & Service Setups
Minor but real:
• Hookups
• Meter transfers
• Internet setup
🧠 PEI First-Time Buyer Bonus Programs
Besides land transfer exemption, PEI also has:
• Down Payment Assistance Program
• Closing Cost Support Program (income-based)
These can significantly reduce upfront pressure.
💵 Example Breakdown – $350,000 Purchase (First-Time Buyer)
Legal: $2,000
Transfer Tax: $0 (if exempt)
Title Insurance: $350
Inspection: $600
Adjustments: $1,200 (varies)
Insurance PST: varies
Total ballpark: $4,000 to $7,000
Without exemption? Add $3,500.
🔥 The Big Takeaway
👉 If you’re putting 5% down, make sure you have another 1.5–3% saved for closing.
Closing Cost Program
This program allows eligible first time home buyers to apply for a grant to get money back on their closing cost!
📌 What the Closing Cost Support Program Is
The Closing Cost Support Program helps eligible first-time home buyers in PEI with a reimbursement toward a portion of their closing costs when purchasing their first home. The goal is to ease the upfront financial burden of fees associated with closing a purchase.
💰 How Much You Can Get
✔ Eligible applicants can receive up to $2,500 toward closing costs.
This isn’t a loan — it’s a support contribution tied to your real expenses at closing.
📋 Basic Eligibility Requirements
To qualify for this closing cost support program in PEI you generally must:
• Be a first-time home buyer under the Real Property Transfer Tax Act
• Be a resident of PEI and a Canadian citizen or permanent resident
• Have a total annual household income within the limit set by the program (often modest/low-income thresholds)
• Buy a principal residence in PEI
• Closing must occur on or after the program’s effective date – applications are usually accepted until funds run out.
🔄 How It Works With Other Programs
This closing cost support can be used alongside the Down Payment Assistance Program and other first-time home buyer incentives in PEI to reduce overall cash needed at closing.
How do you Apply
Go on the website. You must provide them with the receipts so the payment to the lawyer has to be complete before they will consider it.
https://www.princeedwardisland.ca/en/service/closing-cost-support-program
This calculator can also help estimate closing cost as well!
https://www.goldenpineslaw.com/closing-cost-calculator?fbclid=IwY2xjawRF2cZleHRuA2FlbQIxMABicmlkETFheTJkZndpU1dOQWY4bktWc3J0YwZhcHBfaWQQMjIyMDM5MTc4ODIwMDg5MgABHnQFixEGGe_mSqkFdElUZobtiHtVdCG7vcyCV4SAdtM7sx7I9ASQ2nuPn5NZ_aem_UdnzcBg5IkmWjfbTlOn6Dg