Posted on
September 14, 2025
by
Chloe Costa
Buying a home is one of the biggest financial decisions you’ll ever make—and while most people focus on saving for a down payment, there are several other costs that can sneak up on you. If you’re not prepared, these “hidden” expenses can strain your budget and delay your move-in date.
Let’s break down some of the real estate costs you should expect when buying a home in Prince Edward Island, so there are no surprises on closing day.
1. Closing Costs (1%–5% of the Purchase Price)
What they cover:
These fees are usually due at the time of closing and can total anywhere from a few thousand to tens of thousands of dollars, depending on the price of your home and circumstances. If you don’t have a lawyer in mind, I am happy to recommend a reputable property lawyer.
💡 Tip: Always request an estimate from your lawyer early in the process to budget properly.
2. Inspections ($400–$600 + HST)
Depending on the property a professional home inspection or septic inspection is optional, but highly recommended. It can uncover potential issues like structural damage, plumbing problems, or roofing concerns.
If major issues are found, you can use the report to renegotiate the price or ask the seller to make repairs or if you are not comfortable with the report, assuming you have a home inspection condition, you can walk away.
3. CMHC Insurance (for down payments under 20%)
If your down payment is less than 20%, you’ll need to pay mortgage default insurance, typically through the Canada Mortgage and Housing Corporation (CMHC). The premium depends on your down payment and can range from 2.8% to 4% of your mortgage.
This cost can be rolled into your mortgage or paid upfront.
4. Home Insurance (Required by Lenders)
Before your lender releases funds, you’ll need to provide proof of homeowners insurance. Prices vary depending on location, home size, and coverage, but expect to pay around $700–$1,500 annually in Prince Edward Island.
5. HOA Fees (If Applicable)
If your new home is in a neighborhood or condo community with a Homeowners Association (HOA), you’ll need to pay monthly or annual dues. These can range from $100 to over $1,000 per month, depending on the amenities and services offered.
6. Moving Costs ($500–$2,500+)
Don’t forget about the cost of actually getting into your new home. Whether you’re hiring movers, renting a truck, or buying new furniture, moving expenses can add up quickly.
7. Utilities & Deposits
You may need to set up new accounts for electricity, water, gas, internet, and other services. Some providers require deposits—especially if you don’t have a long history with them.
Final Thoughts
While the down payment is a major piece of the puzzle, it’s only part of the total cost of buying a home. By understanding and budgeting for these additional expenses, you’ll avoid surprises and set yourself up for a smooth homebuying experience.
Whether you're a first-time buyer or making a move, I’m happy to help you navigate the full cost of homeownership in PEI—from pre-approval to handing over the keys! Reach out anytime.
