Island homes are cheaper than those in many provinces, though a purchase here still runs into the hundreds of thousands. In September 2026, PEI house prices, measured by the MLS benchmark, came in at $377,900, 0.5% higher than a year earlier.1 That's a large sum to commit to, so learn the numbers before you shop for a mortgage and sign anything.
The average house price in Canada is far above what you'll pay on the Island. Read on for current Island prices, the monthly cost of a typical home, the transfer tax and how to make sure you buy within your means.
Key Points
- PEI's MLS benchmark for a typical home stood at $377,900 in September 2026, 0.5% above the year before.
- Homes sold on the Island that month for an average of $409,925, a 1.4% year-over-year rise.
- The national average of $666,538 is about $289,000 higher than PEI's benchmark.
- Paying $377,900 with 5% down and a 5% rate puts your mortgage payment near $2,172 a month.
- On the Island, you pay 1% in real property transfer tax on the price or assessed value, and qualifying first-time buyers can have it waived.
What Do PEI House Prices Look Like In 2026?
Using the MLS benchmark, PEI's typical home carried a value of $377,900 in September 2026. Prices were up 0.5% from September 2025.1
Two measures are worth knowing. The benchmark follows a typical home, while the average sale price changes with whichever homes sold. In September 2026, Island homes sold for an average of $409,925, 1.4% more than a year before.1
In January 2005, PEI's benchmark was $118,000. It set a record of $388,400 in July 2026, and September's $377,900 sits about 2.7% below that high while still more than three times the 2005 figure.2
Prince Edward Island Benchmark Home Price, 2005 To 2026
Peak $388,400 in July 2026 | September 2026: $377,900
Source: CREA MLS Home Price Index, Prince Edward Island composite benchmark price, not seasonally adjusted.
Each measure gives a slightly different picture of Island prices:
| Price Measure | Price | Year-Over-Year Change |
|---|---|---|
| MLS HPI benchmark price (typical home, September 2026) | $377,900 | +0.5% |
| Average sale price (September 2026) | $409,925 | +1.4% |
| Median sale price, single detached homes (third quarter of 2026) | $415,000 | +6.4% |
Source: CREA (September 2026 and third quarter of 2026).1 Detached homes outpaced the wider market, with a median sale price of $415,000 in the third quarter, up 6.4%. If you're set on a detached house, budget closer to that figure than to the benchmark.
How Do PEI House Prices Compare With The Rest Of Canada?
PEI's typical home is about $289,000 cheaper than the $666,538 national average. Among the Atlantic provinces, it lands in the middle, below Nova Scotia but above Newfoundland and Labrador and New Brunswick.1
| Region | Home Price (September 2026) | Year-Over-Year Change |
|---|---|---|
| Canada | $666,538 | -1.6% |
| British Columbia | $923,887 | -2.4% |
| Ontario | $791,691 | -4.3% |
| Quebec | $563,241 | +2.2% |
| Alberta | $525,308 | +5.2% |
| Nova Scotia* | $423,200 | -2.5% |
| Manitoba* | $388,200 | +3.4% |
| Prince Edward Island* | $377,900 | +0.5% |
| Saskatchewan* | $376,700 | +2.8% |
| Newfoundland and Labrador* | $355,600 | +5.5% |
| New Brunswick* | $341,700 | +2.7% |
Source: CREA (September 2026).1 An asterisk means the MLS HPI benchmark is shown, and Canada, British Columbia, Ontario, Quebec and Alberta are listed by average price. Of the provinces where prices went up, PEI's 0.5% was the smallest gain.
What Will You Pay Monthly For A $377,900 PEI Home?
Your payment on a home at PEI's $377,900 benchmark would land between $1,758 and $2,172 each month, and the larger your down payment, the lower it goes. These figures use a 25-year amortization with a 5% fixed rate.
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| Down Payment | Amount Down | CMHC Insurance Premium | Total Mortgage | Monthly Payment |
|---|---|---|---|---|
| Minimum (5.00%)* | $18,895 | $14,360 (4.00%) | $373,365 | $2,172 |
| 10% | $37,790 | $10,543 (3.10%) | $350,653 | $2,039 |
| 20% | $75,580 | None | $302,320 | $1,758 |
*Homes up to $500,000 need at least 5% down. For a $377,900 Island home, the minimum is $18,895.
These numbers are for illustrative purposes only. Actual numbers may vary.
With $18,895 or $37,790 down, you'd pay a default insurance premium of $14,360 or $10,543, and it gets added to your loan balance. A 20% down payment of $75,580 means no premium at all.
What Happens To Your PEI Payment When Rates Change
Put 20% down and you'd borrow $302,320. Every half-point move in your rate shifts your monthly bill $80 to $90 up or down.
| Interest Rate | Monthly Payment | Total Interest Over 25 Years |
|---|---|---|
| 4.0% | $1,590 | $174,759 |
| 4.5% | $1,673 | $199,658 |
| 5.0% | $1,758 | $225,172 |
| 5.5% | $1,845 | $251,281 |
| 6.0% | $1,934 | $277,959 |
These numbers are for illustrative purposes only. Actual numbers may vary.
Try your own figures in the mortgage calculator below.
Mortgage Calculator
| Amortization | Payment | Total interest | Total paid |
|---|---|---|---|
| 15 years | $3,356.62 | $164,191.53 | $604,191.53 |
| 20 years | $2,773.78 | $225,707.84 | $665,707.84 |
| 25 years | $2,435.28 | $290,584.30 | $730,584.30 |
| 30 years | $2,218.55 | $358,677.44 | $798,677.44 |
| Year | Principal paid | Interest paid | Balance left |
|---|---|---|---|
| Year 1 | $9,805.24 | $19,418.13 | $430,194.76 |
| Year 2 | $10,251.44 | $18,971.93 | $419,943.33 |
| Year 3 | $10,717.94 | $18,505.43 | $409,225.38 |
| Year 4 | $11,205.67 | $18,017.70 | $398,019.71 |
| Year 5 | $11,715.60 | $17,507.77 | $386,304.11 |
| Year 6 | $12,248.74 | $16,974.64 | $374,055.37 |
| Year 7 | $12,806.13 | $16,417.24 | $361,249.24 |
| Year 8 | $13,388.89 | $15,834.48 | $347,860.35 |
| Year 9 | $13,998.17 | $15,225.20 | $333,862.18 |
| Year 10 | $14,635.17 | $14,588.20 | $319,227.01 |
| Year 11 | $15,301.16 | $13,922.21 | $303,925.85 |
| Year 12 | $15,997.46 | $13,225.91 | $287,928.39 |
| Year 13 | $16,725.45 | $12,497.93 | $271,202.94 |
| Year 14 | $17,486.56 | $11,736.81 | $253,716.38 |
| Year 15 | $18,282.31 | $10,941.07 | $235,434.07 |
| Year 16 | $19,114.27 | $10,109.11 | $216,319.81 |
| Year 17 | $19,984.08 | $9,239.29 | $196,335.72 |
| Year 18 | $20,893.49 | $8,329.89 | $175,442.24 |
| Year 19 | $21,844.27 | $7,379.10 | $153,597.97 |
| Year 20 | $22,838.32 | $6,385.05 | $130,759.65 |
| Year 21 | $23,877.61 | $5,345.77 | $106,882.04 |
| Year 22 | $24,964.19 | $4,259.19 | $81,917.86 |
| Year 23 | $26,100.21 | $3,123.16 | $55,817.64 |
| Year 24 | $27,287.94 | $1,935.44 | $28,529.71 |
| Year 25 | $28,529.71 | $693.66 | $0.00 |
Estimates only. How we calculate: home price minus your down payment, repaid in equal payments at your rate, with interest compounded semi-annually, as fixed-rate mortgages in Canada usually are. Accelerated payments are your monthly payment split in two (bi-weekly) or four (weekly), which pays the mortgage off sooner. With less than 20% down on a home under $1.5 million, the CMHC default insurance premium (2.80% to 4.00% of the loan, by down payment) is added to the mortgage; in Ontario, Quebec and Saskatchewan, the provincial sales tax on it is due at closing and isn't included. Property tax and other fees are not included.
What Will You Pay In PEI Real Property Transfer Tax?
When you buy on the Island, a 1% real property transfer tax applies. It's calculated on the higher of the purchase price or the property's assessed value.3
| Buyer | Transfer Tax On A $377,900 Home |
|---|---|
| Repeat buyer (1%) | $3,779 |
| Eligible first-time buyer (tax waived) | $0 |
These numbers are for illustrative purposes only. Actual numbers may vary.
First-time buyers who qualify don't pay it. Every buyer named on the deed has to be a Canadian citizen or permanent resident, can't have owned a home they lived in before, and can't have claimed the exemption in the past.4 You must also have lived in PEI for six months or more before the deed is registered, or filed a PEI tax return in at least two of the previous six years.4
If you haven't reached six months of residency on closing day, you can claim a refund once you've lived in the home for 183 days. Living there as your principal residence for at least 183 days is required either way, or the exemption is cancelled and the tax is due.4 Homes where both the price and the assessed value are $30,000 or less aren't taxed.3
Do Mortgage Rates Move PEI House Prices?
Yes. Rates decide how many buyers can afford a home, and that drives prices. Cheap borrowing pulls more buyers into the market, which can lift prices. Higher rates mean fewer people qualify for the mortgage they need, so prices tend to level off.
Borrowing got more expensive at the end of October 2026. The Bank of Canada set its policy rate at 2.50% on October 28, up from 2.25%.5 Variable-rate borrowers will see higher costs. Island sales still rose 6.9% year over year in September, to 201 homes, so demand held up.1
What Moves PEI House Prices Up Or Down?
A few things shape what an Island home sells for at any given time:
Whether It's A Buyer's Or Seller's Market
Home prices follow supply and demand like any other product. Tight supply and strong demand push prices up, while lots of listings and few buyers keep them flat.
In a seller's market, there are far more buyers than homes for sale, and competition drives prices higher. In a buyer's market, plenty of homes sit unsold with fewer people bidding, so there's no pressure for prices to rise.
Right now the Island leans toward buyers. At the end of September 2026, PEI had 1,360 active listings, roughly unchanged from a year before, while new listings were up 4.9%.1 Inventory was 6.8 months, lower than 7.2 months a year earlier but higher than the 5.7-month long-run average for that time of year.1 For you, that means more options and more room to bargain.
Jobs And Wages On The Island
Low unemployment and good wages give people more to spend, so more of them can afford a home. That extra demand can raise prices.
A struggling job market has the opposite effect. With less money to go around, especially for something as big as a house, demand softens and prices stay lower.
Where The Home Sits
Location may be the single biggest influence on price. Identical homes in two different spots will sell for two different amounts.
The Home's Age And Condition
Newer, well-kept homes are worth more than older ones that badly need upgrades, so a property's age and condition feed directly into its price.
How Much Space You Get
Larger homes need more materials and finishes to build, so they usually sell for more than smaller homes on the same street.
Higher-End Features
Buyers will pay extra for features that are in demand. A kitchen with granite counters and hardwood throughout is worth more than one with linoleum and carpet, so upgraded homes usually cost more.
Is A $377,900 PEI Home Within Your Budget?
It depends on your mortgage affordability, which is shaped by your earnings, what you already owe and your down payment. Two ratios carry the most weight: your GDS, or gross debt service, and your TDS, or total debt service. Staying within them keeps your housing costs at a level you can manage.
Your lender looks at the same two ratios to decide whether to approve your mortgage and how much you can borrow.
Two Ratios Lenders Check
GDS looks at what you spend on principal, interest and property taxes compared with your income.
TDS covers all your monthly debt payments, housing included, measured against your income. Combined, they're your debt service ratio.
What Should You Do Before Buying A Home In PEI?
Keep these points in mind as you shop for an Island home:
Start With A Mortgage Pre-Approval
Before you book viewings, get pre-approved for a mortgage. The lender reviews your finances and tells you how much you can borrow.
Use that amount to filter listings so every home you visit fits your budget. A firm number saves you time and the letdown of falling for a home you can't buy.
Try not to borrow the full pre-approved amount. Leaving some room keeps a large mortgage from squeezing your monthly budget. At PEI's benchmark, for example, the payment gap between 5% and 20% down is about $414 a month.
Plan For Costs Beyond The Mortgage
Owning an Island home brings bills on top of your mortgage payment, and your budget has to cover both. The next section lists them.
Shop Around For Your Rate
Your interest rate affects what you pay as much as the price does. A higher rate costs more over the life of the loan, so compare lenders and aim for the lowest rate you can get. On a $302,320 mortgage, 4.0% instead of 5.0% saves about $50,000 in interest over 25 years.
What Are The Yearly Costs Of Owning A PEI Home?
After your mortgage, property tax is the largest cost of owning on the Island. The province collects property tax for every community, and the bill covers provincial tax, municipal tax, fire district charges and waste collection.6
| Expense | What To Expect |
|---|---|
| Property taxes | Non-commercial property is taxed provincially at $1.70 per $100 of taxable assessment. Residents get a $0.70 per $100 provincial credit, bringing the rate down to $1.00 per $100.6 For a resident with a $350,000 assessment, the provincial share is about $3,500 a year. Municipal and fire district rates, set each March, come on top. |
| Home insurance | Your policy should protect both the house and what's in it, so add the premium to your budget. |
| Utilities | Heat, power, water, internet and phone service are recurring monthly bills. |
| Maintenance and repairs | Furnaces, roofs and appliances don't last forever, and a monthly repair fund keeps a surprise breakdown manageable. |
| Condo fees | Buying a condo means a monthly condo fee, which pays for some costs you'd otherwise cover yourself. |
Where Is The PEI Housing Market Headed In 2026?
The Island market has been steady this year, with small price gains and more sales. In September, the benchmark was 0.5% higher than a year before, and sales were up 6.9%.1
PEI is still cheaper than most provinces. Inventory is above its long-run average and the Bank of Canada raised rates in October 2026, so prices look more likely to stay steady than to climb quickly in the coming months.
Before You Buy On Prince Edward Island
Island homes are affordable next to most provinces and the national average, but you're still borrowing a large amount. At the September 2026 benchmark of $377,900, you'd pay roughly $1,758 to $2,172 monthly on the mortgage, plus the 1% transfer tax unless you qualify for the first-time buyer exemption. Get your finances in order first so you know what you can comfortably spend on a PEI home.
Average House Prices In PEI FAQs
What's pushing PEI house prices higher?
Do interest rates change house prices on the Island?
How do you figure out what you can afford in PEI?
How much did PEI prices rise in the last year?
Is PEI cheaper than the Canadian average?
What affects home values in PEI?
How much is the mortgage on a typical PEI home?
Do PEI buyers pay a land transfer tax?
Sources
- Canadian Real Estate Association (CREA). (2026). Prince Edward Island Real Estate Association housing market statistics (September 2026) and median price (third quarter of 2026). https://creastats.crea.ca/board/peia
- Canadian Real Estate Association (CREA). (2026). MLS Home Price Index data, not seasonally adjusted (monthly), Prince Edward Island. https://www.crea.ca/housing-market-stats/mls-home-price-index/hpi-tool/
- Government of Prince Edward Island. (2017). Real property transfer tax rate. https://www.princeedwardisland.ca/en/information/finance/real-property-transfer-tax-rate
- Government of Prince Edward Island. (2017). Real property transfer tax first-time home buyers exemption. https://www.princeedwardisland.ca/en/information/finance/real-property-transfer-tax-first-time-home-buyers-exemption
- Bank of Canada. (2026). Bank of Canada raises the policy rate by 25 basis points to 2.50%. https://www.bankofcanada.ca/2026/10/fad-press-release-2026-10-28/
- Government of Prince Edward Island. (2026). Property taxes and charges. https://www.princeedwardisland.ca/en/information/finance-and-affordability/property-taxes-and-charges
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