PEI is mostly rural with a couple of urban areas and the most commonly bought or sold property here is the single family home. While duplexes and townhouses are available in Charlottetown and Summerside, the single family home still dominates the market. Homes in PEI sell well below the national average coming in with an average selling price at $178,000 making PEI very affordable. Here is what you should know before buying a home in PEI.
Before you start house hunting you should have a meeting with your bank to make sure you have the adequate funds for the down payment as well as the monthly mortgage payments. You can get pre-approved for a mortgage so you know what kind of budget that you have to work with. With pre-approval you can meet with a realtor who can help you find the right house for you.
Before you start making offers here are some things you should know about how real estate works in PEI:
- The minimum down payment for a house on the island is at least 5%
- Unless this is your first time buying a home you will also have to pay a 1% Real Property Transfer Tax
- There are other fees associated with buying your home like inspection fees, closing costs and mortgage insurance
- Getting a home inspection done is a MUST! There are plenty of home inspectors and you can find one with a simple Google search. They will find any potential problems like cracked foundations or wiring issues.
- Many homes in PEI use well water, if the property you’re looking at has a well then you will need to have the water tested at your expense.
- A qualified lawyer able to practice in PEI is necessary to complete the paperwork necessary in selling a house.
- Property taxes are an annual expense, if you have a mortgage they will be rolled into the monthly payments. If not, it will be your responsibility to pay them. The tax rate will depend on the value and where your property is located, this should be disclosed to you at the time of purchase.
Finding Your Dream Home
There are plenty of resources to help you find your dream home. You can start by working with one of our local realtors who knows the area well. You can also check the PEI Real Estate Guide that is published weekly on Thursdays, it will also list the upcoming open houses for the weekend. You can also check Kijiji and Craigslist for more listings.