Things To Consider When Buying a Home in PEI

While not as crazy as buying a home in some of Canada’s superheated housing markets, buying a home on PEI still comes with a huge list of things to consider. For example:

How much house can you afford? New mortgage rules designed to cool down hot housing markets in other parts of Canada also have an impact on PEI. Every homebuyer needs at least a 5% down payment, but banks are getting stricter about where that money can come from. They’re also getting stricter about how much monthly payment you can afford. While mortgage rates are around 2.5% right now, banks want to make sure you’d still be able to make your payments if they rose to over 4%. The Kendra Stretch team can help you find the perfect home on a budget that makes sense

Have you considered the taxes? You’ll be charged property tax on your home, but do you know how quickly the taxes are rising in your area? There’s also a 1% Real Property Transfer Tax if you already own a house on PEI, and cities across PEI often add their own taxes. Talk to the Kendra Stretch team to learn more about what your yearly tax bill could be.

Have you included all the fees? Once you’ve found the perfect home for you and your family, there are plenty of costs to consider before you can close the deal. It’s important to get the home appraised and inspected to avoid surprises and to make sure you’re getting a fair price. If the house has its own water well, you’ll need to pay someone to test it, and you’ll need a qualified lawyer to make sure all the legal documents are completed correctly. The Kendra Stretch team can transparently lay out these fees for you, and they can provide you with a list of fairly priced professionals.

Do you know what the seller is responsible for? For example, did you know that if the house has an oil tank, the seller is responsible for filling it before the change of ownership? The Kendra Stretch team can make sure you know your rights going into a sale.

If you have any questions, use the information below to get in touch!