Current Mortgage Rates in PEI
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What's a good mortgage rate in PEI right now?
As of October 2026, variable mortgage rates in PEI start around 3.4% while fixed rates are generally well over 4%. A fixed rate under 4.2% would be a good deal.
PEI mortgage rates you can get from a broker
 Lender highlights Some mortgage features.Good monthly pre-payment.Skip a payment.Good annual pre-payment. Best rate from Manulife Financial 3.50%5 yearvariable $3,880monthly payment Other rates from Manulife Financial4.24% 3 year fixed $4,194 per month 4.39% 5 year fixed $4,259 per month |
 Lender highlights Strong mortgage features.Very good monthly pre-payment.Skip a payment.Very good annual pre-payment. Best rate from Bank Of Montreal 3.60%5 yearvariable $3,922monthly payment Other rates from Bank Of Montreal4.50% 4 year fixed $4,308 per month 4.58% 3 year fixed $4,343 per month 4.73% 2 year fixed $4,409 per month 4.95% 5 year fixed $4,508 per month 5.33% 1 year fixed $4,681 per month |
 Lender highlights Strong mortgage features.Very good monthly pre-payment.Skip payment not available.Very good annual pre-payment. Best rate from Neo Financial 3.60%5 yearvariable $3,922monthly payment Other rates from Neo Financial4.69% 5 year fixed $4,392 per month 4.79% 3 year fixed $4,436 per month 4.94% 4 year fixed $4,504 per month 5.84% 2 year fixed $4,918 per month 5.94% 1 year fixed $4,965 per month |
 Lender highlights Strong mortgage features.Very good monthly pre-payment.Skip payment not available.Very good annual pre-payment. Best rate from Pine Financial 3.60%5 yearvariable $3,922monthly payment Other rates from Pine Financial4.54% 4 year fixed $4,325 per month 4.59% 3 year fixed $4,347 per month 4.59% 5 year fixed $4,347 per month |
 Lender highlights Strong mortgage features.Very good monthly pre-payment.Skip payment not available.Very good annual pre-payment. Best rate from Radius Financial 3.60%5 yearvariable $3,922monthly payment Other rates from Radius Financial4.69% 5 year fixed $4,392 per month 4.79% 3 year fixed $4,436 per month 4.89% 4 year fixed $4,481 per month 5.09% 2 year fixed $4,571 per month 5.19% 1 year fixed $4,617 per month |
Big Six mortgage rates available in PEI
3-Year Fixed | 3-Year Variable | 5-Year Fixed | 5-Year Variable | |
|---|---|---|---|---|
4.77% | 7.78% (open) | 4.96% (insured) 4.86% (uninsured) | 4.12% | |
4.76% | 4.07% | 4.81% (insured) 5.16% (uninsured) | 4.12% | |
4.99% | -- | 4.73% (insured) 5.08% (uninsured) | 4.14% | |
4.83% | -- | 4.77% (insured) 5.04% (uninsured) | 3.68% (insured) 3.98% (uninsured) | |
6.05% | 5.95% | 6.19% | 4.90% | |
5.174% | -- | 5.361% (insured) 5.361% (uninsured) | 4.261% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
PEI mortgage rate update: October 2026
October could be a miserable month for mortgages in PEI.
Fixed rates spent the last two weeks of September rising in response to spiking government bond yields. While home buyers may have been able to find a fixed rate for around 3.9% last month, they’ll be lucky to find one for under 4.2% in October.
Expect those higher fixed rates to throw a bucket of cold water on the PEI housing market this fall.
Variable rates will continue providing an affordable alternative, but the gap between fixed and variable rates may shrink as soon as October 28, when the Bank of Canada will hand down its next overnight rate decision.
Analysts are split on whether the Bank might finally raise the overnight rate after more than a year. If it does, variable rates will increase by the same amount as the Bank’s rate hike.
NerdWallet’s take is that the Bank will continue holding, as a rate increase could weaken economic growth. But the prospect of future rate hikes might be too much risk for some home buyers.
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.
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 October 2026, fixed mortgage rates are higher than they've been in almost a year thanks to rapid increases in government bond yields, which lenders use to price their fixed rates. Yields skyrocketed after the war in Iran caused oil prices to spike, and they rose higher in September after the Bank of Canada called out rising inflation and reduced economic growth as threats facing the Canadian economy.
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.
PEI housing market update
PEI's sluggish market enjoyed a major rebound in August 2026. Home sales surged 13.6% from July, but they were down 5.5% year-over-year. Year-to-date, home sales were 11.6% behind the first eight months of 2025.
Despite the sales increase, home values pulled back. The benchmark price fell 3.3% on a monthly basis to $367,700, and was down 1.1% year-over-year.
State of the market: Still fairly soft. One good month doesn't mean things are turning around. Buyers may have been trying to get ahead of rate increases.
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.
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 |
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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 range from variables offered by brokers in the mid-3% range to fixed rates at the big banks that are well over 4%.
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.
What's the minimum down payment for a house in PEI?
Based on recent sales data, a typical home in PEI sells for around $368,000. Canada's down payment rules dictate that the minimum down payment for a home with that price would be $18,400, or 5%. You may be required to make a larger down payment based on your personal financial situation.
How are mortgage rates determined in PEI?
Mortgage rates are influenced by economic factors, like the Bank of Canada’s overnight rate (variable rates), government bond yields (fixed rates) and your personal finances. Rate offers in PEI might be a little higher than in other provinces due to less competition.
Is PEI a buyer's market or seller's market right now?
Home sales dropped significantly in PEI over the summer, so the market currently favours buyers. But it's hard to call PEI a full-blown buyer's market.
Does PEI have a land transfer tax that first-time buyers are exempt from paying?
PEI's property transfer tax is 1% of either a home's purchase price or its assessed value, whichever is higher. First-timers can apply for a waiver of the tax.
Should I go fixed or variable in PEI right now?
Choose a fixed rate if you can afford the higher mortgage payment and you expect to stay in your home for the duration of the mortgage term. Go variable if it helps you qualify and you can afford higher payments if the Bank of Canada starts raising interest rates in late 2026/early 2027.
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Clay Jarvis
Clay Jarvis