Current Mortgage Rates in PEI
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PEI mortgage rates you can get from a broker
Big Six mortgage rates available in PEI
3-Year Fixed | 4.67% | 4.76% | 4.74% | 4.78% | 5.95% | 4.725% |
3-Year Variable | 7.78% (open) | 4.07% | -- | -- | 5.95% | -- |
5-Year Fixed | 4.76% (insured) 4.86% (uninsured) | 4.61% (insured) 4.94% (uninsured) | 4.73% (insured) 4.88% (uninsured) | 4.62% (insured) 4.92% (uninsured) | 6.09% | 4.861% (insured) 4.861% (uninsured) |
5-Year Variable | 4.12% | 4.12% | 4.14% | 3.68% (insured) 3.98% (uninsured) | 4.90% | 4.311% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
PEI mortgage rate update: July 2026
At the beginning of July, it seemed as if it was going to be a good month for mortgage shoppers in PEI. Fixed rates had eased as the war in Iran inched toward a peaceful conclusion.
Well, that’s all out the window. Now that bombs are once again falling in and around Iran, government bond yields are on the rise. This matters because lenders use yields to price their fixed mortgage rates.
The risk — an all too familiar one at this point — is that yields increase to the point that lenders are forced to raise their fixed mortgage rates. If you’re eyeing a fixed rate for an upcoming home purchase, get pre-approved pronto to hedge against this frustrating risk.
Variable mortgage rates in PEI, on the other hand, are a model of stability.
After the Bank of Canada announced it was holding its overnight rate at 2.25% on July 15, variable rates will continue hovering around their current levels until at least September 2, when the Bank will hand down its next overnight rate decision.
PEI housing market update
Prince Edward Island’s housing market experienced a jolt of activity in June 2026. Home sales rose 9.1% compared to May, but were down 8.9% year-over-year. Year-to-date, home sales on the island are tracking roughly 11.1% behind the first half of 2025.
Home values across PEI held mostly steady. The provincial benchmark price fell 0.1% month-over-month to $381,700 but was up 1.5% versus June 2025.
State of the market: Calm and highly balanced; flat month-over-month pricing combined with steady inventory means both sides can transact with confidence.
Prince Edward Island land transfer taxes
The property transfer tax on Prince Edward Island is 1% of the greater of the home's purchase price or its assessed value.
- So, if the purchase price was $250,000, the transfer taxes will be $2,500.
Prince Edward Island first-time home buyer programs
Applicants for the PEI Down Payment Assistance Program can receive up to 5% of a home’s purchase price, up to a maximum loan of $17,500, as a loan to be used for the down payment.
After an optional one-year grace period, the amount must be repaid in full, though no interest is charged. Interest of 5% per year is applied if you default on your repayments. Eligibility requirements include a household income of $100,000 or less and a home price of $350,000 or less.
Read more about the Bank of Canada's latest rate announcement.
The BoC makes policy interest rate announcements eight times a year. Find out how its latest decision might impact Canada's housing market.
Where to get a mortgage in PEI
Even though PEI is Canada's smallest province, there are still many places to get a mortgage. In addition to Canada’s biggest banks, you can also find mortgages at:
Credit unions.
Monoline lenders, which only provide mortgages.
Alternative lenders, which often service borrowers with lower credit scores.
Private lenders, which can range from individuals to large nationwide companies.
Here are some examples of different mortgage providers in PEI. You can find reviews of several of them in our mortgage review hub.
Banks | Direct Lenders |
|---|---|
RBC Royal Bank | First National Financial |
Scotiabank | MCAP |
CIBC | CMLS Financial |
BMO Bank of Montreal | nesto |
TD Canada Trust | Home Trust Company |
Brokerages | Credit Unions |
Centum | Provincial Credit Union |
Dominion Lending Centres | Consolidated Credit Union |
TMG The Mortgage Group | Morell Credit Union |
East Coast Mortgage Brokers | Souris Credit Union |
2026 mortgage rate forecast
Variable rates
Variable mortgage rates weren't forecasted to move in 2026, but the war in Iran has changed the game.
By driving up oil prices and inflation expectations, the Bank of Canada has warned that higher rates may be needed to keep inflation near its 2% target.
If the Bank increases its overnight rate, variable mortgage rates will follow suit. That could happen as early as this summer.
If the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point. But it's hard to picture a rate cut coming just as inflation's about to spike.
Fixed rates
As of July 2026, fixed mortgage rates are considerably higher than they were a few months ago thanks to rapid increases in government bond yields. (Lenders use bond yields to price their fixed rates.) Yields skyrocketed after the war in Iran caused oil prices to spike, raising fears of inflation and future Bank of Canada rate increases.
Predicting where fixed rates head in the coming months depends heavily on the war in Iran. If it wraps up without further damage to oil and food supplies, bond yields should recede and take fixed mortgage rates with them. If the war escalates and worsens the global financial outlook, yields and fixed rates could increase even further.
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Connect with Homewise to get a renewal rate quote that's personalized to you.Frequently asked questions
What's today's mortgage rate in PEI?
There’s no single mortgage rate in Prince Edward Island. Rates differ based on the lender, rate type and term length. For example, variable rates are currently around 3.4% at mortgage brokers but they're generally over 4% at major banks.
What's a good mortgage rate in PEI right now?
As of July 2026, fixed mortgage rates under 4% and variable mortgage rates south of 3.5% would be considered good deals in PEI.
Are mortgage rates in PEI different than in other provinces?
Mortgage rates in PEI tend to be similar to those in other provinces in Atlantic Canada. They might be a little higher than in more densely populated provinces like B.C., Ontario or Alberta, where the mortgage industry is more competitive.
How can I get a lower mortgage rate in PEI?
Getting a lower mortgage rate generally means presenting yourself as a low-risk borrower to PEI's lenders and brokers. You can do this by making a larger down payment, lowering your debt service ratios and paying off other debts.
What's the minimum down payment for a house in PEI?
Minimum down payment rules are the same in every province. To get a mortgage in PEI, you’ll have to put at least 5% down on a home worth up to $500,000. If the home is worth between $500,000 and $1.5 million, you’ll need to put down 5% of the first $500,000 and 10% of the remaining amount. For homes worth more than $1.5 million, a 20% down payment is required.
How are mortgage rates determined in PEI?
Mortgage rates are influenced by economic factors, like the Bank of Canada’s overnight rate (variable rates) and government bond yields (fixed rates). The rate you’re ultimately offered will depend on your savings, income, debt and credit score.
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Clay Jarvis
Clay Jarvis