First time home buyers / Land transfer tax

Intersting article for people moving back to PEI:
Note: The article does not mention; People buying their first home that are from PEI have to pay the Land Transfer Tax if they purchase a home over $200,000.00
* Call the PEI GOLD TEAM for information concerning New Construction and avoiding the Land Transfer Tax.

People buying their first home on P.E.I. soon will not have to worry about a one per cent land transfer tax, whether they are from the Island or not.

The one per cent tax applies to first-home buyers moving to the Island, but not to those who already live in the province. The new Liberal government believes that sends the wrong message to potential new Islanders.

"We want to entice people to come back here and grow Prince Edward Island," Provincial Treasurer Wes Sheridan said

"That's what we're trying to do. Doctor recruitment - we'd love for them to come back to Prince Edward Island and work here. And the way to do that is to entice them with exact kinds of programs like this."

Under the new plan, people moving to the Island will still have to pay the tax, but if the home is a primary residence, and they live there for six consecutive months, the tax will be rebated. On a $150,000 home it would mean $1,500 coming back to the homeowner.

Sheridan said he isn't sure how much this program will cost the Provincial Treasury in lost revenue.

"It's not monstrous in any way shape or form," he said.

"I think the dollars that will be brought back to Prince Edward Island will far outweigh anything that will pass back in the form of this transfer tax."

While aimed largely at first-time homebuyers, the rebate will also be available to people who used to own a home on the Island and are moving back.

J P Robison

J P Robison

Sales Representative
CENTURY 21 Colonial Realty Inc.
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