Find the best current mortgage rates in Prince Edward Island to ensure you are getting the best deal. PEI has become an increasingly popular destination for homebuyers seeking affordable Maritime living, and a competitive mortgage rate helps maximize your budget.
The average home price in Prince Edward Island is approximately $370,000 in 2026. With a simple 1% land transfer tax and competitive mortgage rates, PEI offers solid affordability compared to larger provinces. Use our mortgage calculator to see how rates affect your monthly payment.
Compare Today’s Best Mortgage Rates in PEI
Looking for competitive mortgage rates in Prince Edward Island? Below you’ll find up-to-date rates from top lenders, whether you’re buying in Charlottetown, Summerside, or anywhere else on the Island.
Why Compare Mortgage Rates in PEI?
PEI’s growing housing market makes rate comparison more important than ever. On a $370,000 home with 10% down, the difference between a 4.00% and 5.00% rate is approximately $197 per month — or over $59,000 in total interest over 25 years.
PEI’s Housing Market
Prince Edward Island has experienced significant growth:
- Average home price: ~$370,000 — still affordable compared to ON and BC
- Charlottetown: Average prices around $390,000
- Population growth: Immigration and interprovincial migration have driven demand
- Tourism economy: Strong seasonal economy supplemented by agriculture, fisheries, and aerospace
- Quality of life: Affordable living with Atlantic Canada’s relaxed lifestyle
Types of Mortgage Rates Available
- Fixed Mortgage Rates: Lock in your rate for predictable payments over your term.
- Variable Mortgage Rates: Rates move with the prime rate. Can offer lower costs if rates decline further.
- Open vs. Closed Mortgages: Open mortgages allow early repayment without penalty, while closed mortgages offer lower rates.
PEI-Specific Lenders
Beyond national banks, PEI buyers should consider:
- Provincial Credit Union — Serving communities across PEI
- Evangeline-Central Credit Union — Serving the Evangeline region
- Big Five banks — Royal Bank, CIBC, BMO, Scotiabank, and TD all have a presence on the Island
Frequently Asked Questions
What is the average mortgage rate in PEI right now? Mortgage rates change daily. Check the rate table above for the latest competitive rates available to PEI borrowers.
How do PEI housing costs compare to other provinces? PEI remains more affordable than Ontario, BC, and even Nova Scotia. Average home prices around $370,000 are roughly 43% of Ontario’s average. The 1% land transfer tax keeps closing costs reasonable.
Is PEI good for first-time homebuyers? Yes. Affordable home prices mean smaller down payments and mortgages. A 5% down payment on a $370,000 home is $18,500. PEI buyers also qualify for federal first-time buyer programs including the Home Buyers’ Plan and FHSA.
How to get the best mortgage rate in PEI
Prince Edward Island has Canada’’s smallest provincial housing market but has seen significant price appreciation driven by tourism, food production, and interprovincial migration.
PEI mortgage market overview
| Metric | Value (2024–2025) |
|---|---|
| Benchmark home price (Charlottetown) | ~$360,000 |
| Down payment (5%) | ~$18,000 |
| CMHC insurance (5% down) | ~$13,680 |
| Monthly payment at 4.5% / 25yr | ~$1,940 |
| PEI Deed Transfer Tax | ~$2,000–$2,500 |
Tips for PEI homebuyers
1. PEI Deed Transfer Tax: PEI charges a Deed Transfer Tax of 1.0% of purchase price. For a $360,000 home, expect ~$3,600. 2. Non-resident restrictions: PEI has land ownership restrictions for non-residents under the Lands Protection Act — consult a PEI real estate lawyer if you are not a permanent resident. 3. Seasonal market: Charlottetown’’s market peaks in spring/summer; winter buyers may find more negotiating room but limited inventory.
Frequently asked questions
Can non-Canadians buy property in PEI? PEI has unique land ownership restrictions under the Lands Protection Act. Non-residents may purchase up to 5 acres of land; purchases above this threshold require approval from the Island Regulatory and Appeals Commission (IRAC). Permanent residents of Canada are not restricted.
Frequently asked questions about PEI mortgages
What income do I need to buy in PEI? For a $360,000 home in Charlottetown with 5% down at 4.5%, a household income of approximately $78,000–$88,000 qualifies under the stress test.
What is the best area to buy in PEI? Charlottetown offers the most liquid real estate market and urban amenities. Summerside (PEI’’s second city) provides lower prices. Rural communities offer dramatic affordability for buyers who work remotely or in agricultural/tourism sectors.
Are there restrictions on buying property in PEI as an outsider? Yes — the PEI Lands Protection Act restricts non-resident land ownership. Non-residents may own up to 5 acres without approval; more than that requires Island Regulatory and Appeals Commission (IRAC) approval. Canadian permanent residents are not restricted.
PEI closing cost overview
| Cost | Typical amount |
|---|---|
| Deed Transfer Tax (1%) | ~$3,600 (on $360K) |
| Home inspection | $350–$500 |
| Lawyer fees | $1,200–$2,000 |
| Title insurance | $200–$350 |
| Home insurance (first year) | $1,200–$2,000 |
| Moving costs | $500–$3,000 |
PEI closing costs are modest due to relatively affordable home prices and a straightforward deed transfer tax structure.
Tools and Resources
- PEI Mortgage Calculator — Estimate your monthly payment on a PEI home
- Mortgage Affordability Calculator — See how much home you can afford
- Mortgage Payment Calculator — Calculate payments at different rates
- Mortgage Stress Test Calculator — Check your qualification