Current Mortgage Rates in PEI
PEI mortgage rates you can get from a broker
Big Six mortgage rates available in PEI
3-Year Fixed | 4.42% | 4.41% | 4.44% | 4.43% | 6.05% | 4.675% |
3-Year Variable | 7.78% (open) | 4.17% | -- | -- | 5.95% | -- |
5-Year Fixed | 4.51% (insured) 4.66% (uninsured) | 4.21% (insured) 4.56% (uninsured) | 4.43% (insured) 4.58% (uninsured) | 4.32% (insured) 4.62% (uninsured) | 6.09% | 4.811% (insured) 4.811% (uninsured) |
5-Year Variable | 4.17% | 4.27% | 4.49% | 3.68% (insured) 3.98% (uninsured) | 4.90% | 4.411% |
Rates in bold are discounted, annual percentage rates (APR), which include additional fees.
Prince Edward Island mortgage rate update: January 2026
After the Bank of Canada decided to hold its overnight rate at 2.25% on January 28, mortgage rates in Prince Edward island could be in for another month of stasis in February.
Variable mortgage rates, which are directly impacted by the BoC’s overnight rate, are expected to stay at their current levels until at least March 18, when the Bank will make its next rate decision.
But the overnight rate is expected to remain unchanged for much, if not all, of 2026, so variables might be as good as they’re going to get this year.
That’s not a terrible scenario if you’re shopping for a variable-rate mortgage. Some brokerages and online lenders are offering variables for as low as 3.4%.
Fixed mortgage rates are a little harder to predict, but they should remain mostly unchanged in February. Government bond yields, which influence fixed mortgage rates, have been steadily declining since spiking in December, giving lenders less reason to hike their fixed rates.
It might take some serious economic turbulence for yields to fall and drag fixed rates down with them. Barring that unlikely scenario, fixed rates should stay around their current levels in PEI for the foreseeable future.
2026 mortgage rate forecast
Variable rates
Variable mortgage rates aren’t expected to experience much change in 2026.
In December, the Bank of Canada said its overnight rate is at “about the right level” to fight inflation and support the economy, which should rule out any imminent rate cuts or increases.
So long as the Bank maintains its overnight rate, variable mortgage rates won’t budge. But if the Canadian economy falters, the Bank may be compelled to deliver a rate cut at some point.
Fixed rates
As of January 2026, it’s possible that fixed mortgage rates will increase in the short-term in response to elevated bond yields.
Long-term fixed-rate projections, however, are difficult to make with any accuracy. Bond yields, which lenders use to price their fixed rates, are determined by factors that are hard to predict, like the state of the economy and the expectations of individual investors.
Some institutions do their best, though. The British Columbia Real Estate Association, for example, expects fixed rates to remain at their current levels for most of 2026.
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.
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.
What's a good mortgage rate in PEI right now?
What's a good mortgage rate in PEI right now?
As of January 2026, fixed mortgage rates under 3.9% and variable mortgage rates south of 3.6% would be considered good deals in PEI.
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.
Getting a mortgage in PEI
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 |
Steps to getting a mortgage in PEI
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.
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.
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
Prince Edward Island was one of only three provinces that saw home sales increase in December. Sales rose 8.8% from November — the largest increase of any province on a percentage basis — and were up a whopping 20.5% versus December 2024.
Sales in 2025 outdid 2024’s totals by 6%, or 122 transactions. That’s a major win considering how challenging buying a home was for many Islanders last year.
Active listings in the province were down 2.8% year-over-year in December, but inventory levels are still higher than average for this time of year.
But demand had more of an impact on prices than supply in December. The provincial benchmark price for homes in PEI rose 1.7% from November to hit $375,300.
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Clay Jarvis
Clay Jarvis