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Mortgage Rates PEI

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The best mortgage rates in Prince Edward Island

Jamie David

Getting a mortgage is a big financial commitment, but there are some sure-fire ways to get a better mortgage rate. The factors that contribute to a lower mortgage rate aren't a secret, so all you need to do is plan ahead.

Our mission at is to make it easy to compare rates from Canada's big banks, credit unions and smaller lenders. That makes it simple for you to choose better, at no cost to you.

Best mortgage rates in PEI +


Prince Edward Island at a glance

  • Population: 166,331
  • Average House Price: $328,500 in Q1 of 2022, a 26.2% year-over-year increase
  • Average Household Income: $61,163
  • Percentage of Homeowners: 70%

Fun Facts About Prince Edward Island 

  • Prince Edward Island is Canada’s smallest province, and the only one that is entirely an island. It is connected to New Brunswick by the 12.9km Confederation Bridge, Canada’s longest bridge. 
  • Author Lucy Maud Montgomery was from Prince Edward Island, and many of her works are set in the province, including her most famous work, Anne of Green Gables. It has been translated into at least 36 languages and sold over 50 million copies, making it one of the best-selling books of all time. There are a number of popular tourist sites on the island related to the book, including the Anne of Green Gables Museum.

What's the best mortgage rate in PEI?

The best mortgage for you is the one that best suits your needs, and offers a great rate. It's important to remember that the best mortgage is not always the mortgage with the lowest rate. While a low rate is important and can save you thousands of dollars, you also need to make sure that the term, conditions, and features of your mortgage suit your needs.

What factors affect the mortgage rate I get?

While comparing mortgage products is an important part of getting the best possible mortgage rate, you’ll still need to personally qualify for your final offer. There are several factors that will affect the rate you’re able to qualify for. Here are some of the major ones:

  • Down payment: In Canada, property purchases require a minimum down payment of between 5% and 20%, depending on the purchase price. However, if your down payment is less than 20%, you’ll have to pay for mortgage default insurance. This will cost you more, but it will make your mortgage less risky, from your lender’s perspective. This generally results in a lower mortgage rate. Note that even with a lower mortgage rate, it's still worth avoiding the cost of mortgage default insurance, so you should always aim to have a down payment of at least 20%.
  • Amortization period: Mortgages with amortization periods of more than 25 years generally have higher interest rates. This is because this type of mortgage can't be insured with mortgage default insurance. Despite this, mortgages with longer amortization periods can be more financially manageable, because they have lower monthly payments.
  • The purpose of the property: You’ll generally be offered a higher rate on a mortgage for a property that you don’t plan to personally live in.
  • Mortgage type: A refinanced mortgage, or a mortgage with features like a HELOC, will typically come with a higher rate than a mortgage for a renewal or new purchase.
  • Credit score: A low credit score may mean you cannot get approved by an ‘A lender’, like a big bank or credit union. If you’re forced to take a mortgage from a ‘B lender’, you’ll probably be charged a higher rate.

PEI mortgage rates: Historical trends

Prince Edward Island mortgage rates rise and fall, as do rates across Canada. Here’s a quick snapshot of the lowest mortgage rates in Canada over the past few years, to give you an idea of where we are today.

Source: Historical Rate Chart

Prince Edward Island Land Transfer Tax

One of the biggest closing costs in PEI is land transfer tax, and you'll need to factor it into your calculations. As with most provinces, land transfer tax in PEI is charged as a marginal rate based on the property purchase price, as shown in the table below.

PEI first-time homebuyer rebate

The PEI government offers a rebate of the provincial land transfer tax to eligible first-time homebuyers. First-time homebuyers will receive a rebate of the tax if the property price is not more than $200,000. Additionally, the buyer must be a resident of PEI, having lived in the provinces for at least 6 months prior to purchase, or to have filed income tax in PEI for two of the last six years.

In addition to this, first-time homebuyers in PEI are also able to access all of the federal first-time homebuyer programs.


  1. Government of Prince Edward Island
  2. CREA
  3. Statistics Canada
  4. Fun World Facts

Jamie David, Business Director of Mortgages

Jamie David is the Business Director of Mortgages at A graduate of the Systems Design Engineering program at the University of Waterloo, she has over 15 years of business, marketing, and engineering experience in the financial technology, banking, education, energy and retail industries. She has worked in top organizations like TD Bank, Trading Pursuits, Petro-Canada, and the TTC. Her passion for personal finance, investing, education, and business strategy brought her to where she heads a very talented, cross-functional team that is dedicated to providing Canadians with the best mortgage experience all the way through from online search to (keys-in-your-hand) funded mortgage.

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