Understanding Closing Costs on PEI
Before you get the keys to your new home, there’s one final step: closing.
This is where ownership officially transfers to you, and where you’ll pay some final fees.
Here’s a breakdown of what closing costs typically include for PEI buyers:
Typical Closing Costs:
Appraisal Fee: Paid to assess the home’s market value (often required by lenders).
Credit Report Fee: Covers your lender’s cost to pull your credit file.
Mortgage Loan Fees: May include processing, underwriting, and possibly discount points if you buy down your interest rate.
Legal Fees: In PEI, a lawyer must handle the legal transfer of title. Legal costs typically range from $800–$1,500+.
Title Search / Land Registry Fees: Ensures clear ownership and records the transaction with the provincial land registry.
Property Tax Adjustments: You may need to reimburse the seller for taxes they’ve already paid for the year.
Home Insurance: Lenders require a policy in place before closing.
Interest Adjustment: Covers interest from your closing date to the end of the month.
Home Inspection (optional but recommended): Usually paid at the time of inspection, not at closing.
HST (if applicable): Only applies to some new-build homes or services—not typically charged on resale properties.
Can Sellers Cover Some Costs?
Sometimes! It’s possible to negotiate seller contributions during the offer stage.
I’ll help you structure your offer to take advantage of opportunities like this.
Bottom Line:
Closing costs in PEI usually range from 1.5% to 3% of the purchase price.
I’ll walk you through everything so there are no surprises.
Book a Free Buyer Consultation Today!