Current Mortgage Rates in PEI
PEI mortgage rates you can get from a broker
Big Six mortgage rates available in PEI
3-Year Fixed | 4.57% | 4.41% | 4.59% | 4.43% | 6.05% | 4.524% |
3-Year Variable | 8.03% (open) | 4.42% | -- | -- | 6.10% | -- |
5-Year Fixed | 4.51% (insured) 4.66% (uninsured) | 4.21% (insured) 4.56% (uninsured) | 4.43% (insured) 4.63% (uninsured) | 4.32% (insured) 4.62% (uninsured) | 6.09% | 4.661% (insured) 4.661% (uninsured) |
5-Year Variable | 4.42% | 4.52% | 4.64% | 3.93% (insured) 4.23% (uninsured) | 5.15% | 4.561% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
Prince Edward Island mortgage rate update: September 2025
It's an active month for mortgage rates in PEI.
On September 17, 2025, the Bank of Canada lowered its overnight rate 25 basis points to 2.5%. Lenders have already responded by lowering their variable mortgage rates.
Some mortgage brokerages are now offering variable rates around 3.7%. They’re still well over 4% at the big banks.
Variable rates could dip again if a cut is handed down at the Bank of Canada’s next overnight rate announcement, which is scheduled for October 23.
Fixed mortgage rates have also edged down in September, but this is a response to falling government bond yields, not the Bank of Canada’s cut.
Three- and five-year yields, which lenders use to price their fixed rates, have been sliding all month. It was just a matter of time before three-year fixed rates and five-year fixed rates followed suit.
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.
Here's what Prince Edward Island mortgage rates are likely to do in 2025
If the Bank of Canada lowers its overnight rate before the end of 2025, variable mortgage rates will also decrease. Fixed mortgage rates will likely continue hovering between 3.75% and 4.25% for much of the year.
How to get a lower mortgage rate in PEI
While some factors that affect rates are beyond your control, there are things you can do to encourage lenders and brokers in PEI to offer you the best mortgage rates. For example, you can:
Improve your credit score. To start, pay down any outstanding debt and pay off every bill in full.
Increase your income. This isn’t always easy, but any additional income will improve your financial position.
Decrease your total debts. Lenders consider your total debt load when determining the details of your loan.
Consider all your options. See if adjusting the loan type, the term length or the amortization period of your loan could help.
Frequently asked questions
What's today's mortgage rate in PEI?
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, some fixed and variable rates in PEI are currently around 3.9% at mortgage brokers but they're well over 4% at major banks.
Economic factors
Variable mortgage rates are influenced by the Bank of Canada’s overnight rate. When the overnight rate increases or decreases, a lender’s prime rate follows suit. Variable mortgage rates are based on a lender’s prime rate, so as the prime rate rises or falls, so do variable rates.
Fixed mortgage rates are determined by activity in the government bond market, particularly the yields on one-, three- and five-year bonds. Fixed mortgage rates follow the movement of those yields.
Your financial situation
Factors specific to you also affect the rates you’re offered. These include:
Your credit score.
Your income.
Your total debts.
The loan type you choose.
The amount you’re borrowing.
The term length and amortization period of your loan.
Lenders look for signs of risk when assessing these aspects of your finances. The riskier they perceive you to be as a borrower, the higher the rate they’re likely to offer you.
What's a good mortgage rate in PEI right now?
What's a good mortgage rate in PEI right now?
As of September 29, 2025, a fixed or variable mortgage rate for under 3.9% would be lower than average for PEI and therefore a relatively good deal.
Are mortgage rates in PEI different than in other provinces?
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?
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?
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?
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.
8Twelve has partnered with over 65 Canadian mortgage lenders to provide competitive rates on over 7,000 mortgage products. 8Twelve can quickly match you with a lender and mortgage type that meets your needs — even if your financial situation is unique.
How to get a mortgage in PEI
Explore different types of lenders
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 |
Make sure you're prepared
Getting a mortgage in PEI isn’t any different than getting one in another province. The real differences are often at the lender level, where you might encounter different mortgage rates and lending guidelines.
Getting a mortgage in PEI generally involves the following steps:
Checking your credit score. If your credit score’s below 620, it might limit the lenders you’re able to borrow from. If it’s relatively low in general, this might be an opportunity to pay down some debt prior to applying for a mortgage.
Comparing mortgage rates. View rates from multiple sources — banks, credit unions and mortgage brokers — to help determine who you’d like to work with.
Getting pre-approved for a mortgage. Reach out to a lender and have them take a thorough look at your finances. Once this process is complete, you’ll have an accurate estimate of what you’ll be able to borrow and how much you’ll pay in interest charges.
Finding a home and putting in a successful offer. This isn’t something you can do safely without being pre-approved first.
Formally applying for a mortgage. Even though you’ve been pre-approved, your lender will need to give your finances a final evaluation before signing off on your loan.
What it's like to renew a mortgage in PEI
Renewing a mortgage in PEI generally involves the same process you’ll encounter in the rest of Canada. Being in a less populous province, however, might mean negotiating in a less competitive marketplace.
You should approach your mortgage renewal the same way you’d approach a home purchase: compare your mortgage rate options thoroughly so you can make an informed decision.
When renewing your mortgage in PEI, keep the following in mind:
Your lender’s initial renewal rate offer won’t be their best. Be prepared to negotiate.
Consider using a mortgage broker, who can compare renewal rates from a wider range of lenders than a bank’s mortgage adviser.
Start the process early and give yourself time to find the product and lender that best suits your current financial situation.
Refinancing a mortgage in PEI
Refinancing a mortgage in PEI shouldn’t be any more difficult than it would be anywhere else. The rates you’ll encounter will generally be similar to those in other provinces, although refinance rates are generally higher than what lenders offer on home purchases.
Prepare yourself for refinancing your mortgage by exploring our mortgage refinancing guide and by comparing current mortgage finance rates.
Mistakes to avoid when getting a mortgage in PEI
Choosing a mortgage based solely on rate. The lowest rate available might be attached to a mortgage with limited features. Discuss the details with your lender or mortgage broker.
Not comparing a variety of lenders. There are many mortgage providers in PEI. Make sure you’re comparing banks, brokers and credit unions so you don’t miss out on what might be the ideal mortgage for your needs.
Not negotiating. Mortgage rates are negotiable. Always ask a lender or broker what more they can do to decrease the rate you’re offered.
Borrowing too much. Borrowing the maximum amount allowed by your lender can help you buy more house, but it can mean less money for essentials, savings and investments.
Things to think about when buying a house in PEI
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.
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.
PEI housing market update
The Prince Edward Island housing market abruptly reversed course in August 2025. After having its busiest July in five years, sales in August were down 7.4% year-over-year and 13.2% below the 10-year average for the month.
The subdued sales shouldn’t be seen as an indication that buyers in PEI are facing a tight market. Active listings — the number of homes still for sale at the end of a month — were at their highest level for August since 2017.
The heightened supply kept prices stable last month. The province’s benchmark price — the Canadian Real Estate Association’s preferred method for measuring price changes — was $377,400 in August, only 1.3% higher than it was a year ago.
Mortgage calculators to help you take the next step
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Clay Jarvis