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First, choose whether you're buying a new home, refinancing or renewing, and fill in a few details. It only takes 3 minutes, and it’s 100% confidential.
Next, we’ll show you quotes from 50+ Canadian banks and brokers. It’s free, with no commitment.
When you find the best quote, secure your Prince Edward Island mortgage rate by talking to a licensed broker or agent.
You’ve found your dream home and now you need to find a low mortgage rate in P.E.I. Well, you’ve come to the right place. At LowestRates.ca, all it takes is a couple of clicks and you can see which brokers, banks and lenders in P.E.I. have cheap mortgage interest rates today for your house.
On LowestRates.ca, you can compare 6-month mortgage rates to 5-year mortgage rates in P.E.I., see who has the best fixed mortgage rates in P.E.I. and what the average mortgage rate in P.E.I. is, and more. What are the current mortgage rates in P.E.I. for 2021? What is the average mortgage rate in P.E.I.? What is the best mortgage rate in P.E.I.? Who has the best mortgage rates in P.E.I.? As your online P.E.I. mortgage agent, we provide the answers to all these questions. Best of all, our service is totally free to use with no obligation on your part.
Check out today's best mortgage rates in Canada by type and term.
| Insured ? | 80% LTV ? The rates in this column apply to mortgage amounts between 65.01% and 80% of the property value. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | 65% LTV ? The rates in this column apply to mortgage amounts that are 65% of the property value or less. The home must be owner-occupied and have an amortization of 25 years or less. You must have purchased it for less than $1 million. These rates are not available on refinances. Refinances require "Uninsured" rates. | Uninsured ? | Bank Rate ? | ||
|---|---|---|---|---|---|---|
Insured 4.69% | 80% LTV 4.19% | 65% LTV 4.19% | Uninsured 5.59% | 5.49% | ||
Insured 4.04% | 80% LTV 3.89% | 65% LTV 3.89% | Uninsured 4.54% | 4.79% | ||
Insured 3.87% | 80% LTV 3.99% | 65% LTV 3.99% | Uninsured 4.24% | 4.29% | ||
Insured 3.99% | 80% LTV 3.99% | 65% LTV 3.99% | Uninsured 4.44% | 4.39% | ||
Insured 3.91% | 80% LTV 3.89% | 65% LTV 3.89% | Uninsured 3.91% | 4.09% | ||
Insured 4.39% | 80% LTV 4.24% | 65% LTV 4.24% | Uninsured 5.19% | 5% | ||
Insured 5.04% | 80% LTV 4.34% | 65% LTV 4.34% | Uninsured 5.29% | 6.09% | ||
Insured 4.15% | 80% LTV 4.3% | 65% LTV 4.3% | Uninsured 4.4% | 6.35% | ||
Insured 3.95% | 80% LTV 3.95% | 65% LTV 3.95% | Uninsured 4.05% | 4.25% | ||
Insured N/A | 80% LTV N/A | 65% LTV N/A | Uninsured N/A | N/A | ||
Insured 5.25% | 80% LTV 5.25% | 65% LTV 5.25% | Uninsured 5.25% | N/A |
4.15%
3.99%
7.24%
When it comes to mortgages, there are many options to choose from. This is why we’re here to walk you through the process. To get you started, you’ll need to figure out how much house you can afford and how much of a mortgage down payment you’re going to make for your P.E.I. home. If you’re able to put down more than 20% of the purchase price of the home, you’ll have what’s known as a conventional mortgage. On the other hand, if you put down less than 20% of the purchase price of the home, you’ll have what’s known as a high-ratio mortgage. With this type, you’ll also be required to purchase mortgage insurance from the Canada Mortgage and Housince Corporation (CMHC).
At this point, you may be asking yourself, ‘is it possible to get a no down payment mortgage in P.E.I.?’ The answer is no. That’s because a 0 or zero-down mortgage is not available in P.E.I. In fact, they are legally not allowed anywhere in Canada.
If you don’t have the money to make a down payment, you could borrow the money from a private lender. But you should know that borrowing from a private lender comes with risks because the industry is unregulated. As a result, private mortgage rates in P.E.I. can be very high, even as high as 20%!
Not sure how much mortgage you can afford? An easy way to get an idea is to use this P.E.I. mortgage affordability calculator provided by the CMHC.
Another smart thing to do before you start shopping around for a mortgage is to see how much of a difference a lower interest rate can make when determining what your monthly mortgage payment will be. To find out, use this P.E.I. mortgage rates and payment calculator.
To show you a comparison between conventional vs. high-ratio mortgage rates in Prince Edward Island we've graphed rates from the last twelve months.
| Date | Average Conventional Rate | Average High Ratio Rate |
|---|---|---|
| 06/24 | 5.13% | 4.97% |
| 07/24 | 5.07% | 4.93% |
| 08/24 | 5.20% | 5.03% |
| 09/24 | 5.17% | 4.97% |
| 10/24 | 4.85% | 4.59% |
| 11/24 | 4.76% | 4.48% |
| 12/24 | 4.79% | 4.56% |
| 01/25 | 4.80% | 4.60% |
| 02/25 | 4.80% | 4.57% |
| 03/25 | 4.68% | 4.45% |
| 04/25 | 4.67% | 4.46% |
| 05/25 | 4.75% | 4.62% |
Last Updated: June 1, 2025
You can obviously save a ton of money by shopping around for a mortgage, but how does the best variable mortgage rate in P.E.I. stack up against the best fixed house mortgage rate in P.E.I.? To find out, we compared 5-year fixed mortgage rates in P.E.I. to 5-year variable mortgage rates in P.E.I., Canada that homebuyers have been applying for on LowestRates.ca. What did we find? That variable rates are lower, which can result in huge savings over time.
| Month | Fixed | Variable |
|---|---|---|
| 06/24 | 5.02% | 6.31% |
| 07/24 | 4.93% | 6.12% |
| 08/24 | 4.99% | 6.14% |
| 09/24 | 5.01% | 6.19% |
| 10/24 | 4.75% | 5.76% |
| 11/24 | 4.66% | 5.40% |
| 12/24 | 4.77% | 5.30% |
| 01/25 | 4.82% | 5.14% |
| 02/25 | 4.70% | 4.90% |
| 03/25 | 4.60% | 4.75% |
| 04/25 | 4.60% | 4.74% |
| 05/25 | 4.74% | 4.88% |
Last Updated: June 1, 2025
Before a lender or mortgage broker in P.E.I. will offer you a mortgage loan, they will want to assess whether you are a low-risk borrower or high-risk borrower. To determine this, they will consider a few factors.
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Calculating the size of the mortgage on your P.E.I. property will require looking at where you live, your down payment and your mortgage interest rate.
On a P.E.I. detached home worth $300,358, a buyer who can make a 20% down payment will have to borrow $240,286.40.
On the same home, a buyer who can only make a 10% down payment will have to borrow $270,322.20.
Plus, keep in mind, if your down payment is less than 20% you will need to get mortgage loan insurance through the Canada Mortgage and Housing Corporation (CMHC). This will protect your lender if for some reason you are unable to make your mortgage payments.
With CMHC mortgage loan insurance, you can qualify for a mortgage for up to 95% of the purchase price of your Prince Edward Island home.
The average price of P.E.I. homes sold in January 2021 was $300,538, rising 14.8% from January 2020.
Once you’ve decided to purchase a new home in P.E.I., you will need to budget for a few other costs besides your mortgage payments.
Property valuation (appraisal) fee: Before any lender will agree to finance your mortgage, they will want to have an independent appraisal of your property completed. Why? Because your home will serve as the collateral for the loan. If for any reason you default on your mortgage payments, the lender will take possession of your home and sell it so they can get their money back. A property valuation or appraisal will confirm for the lender that the value of your new home is equal to or greater than the amount of your mortgage. The approximate cost of a property valuation or appraisal is $400 to $500.
Home inspection fee: Having the home you are considering buying inspected is a way for you to confirm whether the house is sound or requires repairs. This will cost around $450 plus taxes.
Title insurance: What happens if you discover there’s something wrong with your home months after you purchased it? There’s nothing to worry about if you have title insurance. It covers you against any losses you might incur due to undetected or unknown defects to the property. Title insurance can be purchased through your lawyer for about $250.
Mortgage default insurance: If the down payment you make on your new P.E.I. home is less than 20%, you are obligated to purchase mortgage loan insurance through the Canada Mortgage and Housing Corporation (CMHC). The cost of the insurance is calculated by taking the mortgage loan amount and dividing it by the purchase price.
Legal fees: The purchase paperwork for your new home will require the services of a real estate lawyer. Expect to pay between $500 to $800.
Land transfer tax: When a property is purchased by one person from another, land transfer tax must be paid. In P.E.I., the land transfer tax is 1% of the greater of the purchase price of the real property or the assessed value of the real property.
Home insurance: Home insurance isn’t required by law in P.E.I., but we recommend that you get it. Why? Because unexpected events happen and when they do, the damage to your home can be financially devastating. Also, many lenders will not give you a mortgage without it. Homeowners insurance covers the cost to repair or rebuild your home after events like fire, smoke, theft, vandalism, a falling tree, or damage caused by weather such as lightning, wind, or hail. Most standard homeowners insurance policies also cover the replacement cost of furniture, clothing, and other possessions that you keep in your home.
Mortgage term: The mortgage term is the amount of time that you commit to your mortgage rate, lender and the terms and conditions of the contract. At the end of the term, you’ll renew your contract with the mortgage company for the remaining principal at a new rate. The process repeats until you’ve paid off the mortgage on your P.E.I. home. A mortgage term can vary in length, from six months to 10 years, with the most common term in Canada being five years.
Amortization period: The amortization period is the amount of time it will take you to pay off your entire mortgage. In Canada, the maximum amortization period is 35 years. But, if your down payment was less than 20%, and you were required to purchase mortgage insurance from the Canadian Mortgage Housing Corporation (CMHC), then your maximum amortization period is 25 years.
The mortgage rate that you qualify for from a P.E.I. bank or other lender will depend on whether you get an open mortgage or a closed mortgage.
With an open mortgage, you have the option to pay it off whenever you want. If you have a closed mortgage and want to pay it off before your mortgage term is over, you will have a penalty to pay.
Are there any advantages to a closed mortgage? Are closed mortgage rates in P.E.I. better?
Yes, a closed mortgage generally offers a lower interest rate than an open mortgage. Meanwhile, open mortgage rates in P.E.I. are usually variable and a little higher.
Owning a Home: The average price of a home in P.E.I. was $300,538 in January 2021.
Renting a Home: Average cost of renting in P.E.I. as of March 2021.
Car Insurance: P.E.I. car insurance rates are among the cheapest in Canada. The average cost of an insurance policy for a P.E.I. driver is $816 according to the Insurance Bureau of Canada.
For most people, their mortgage will be the largest loan they ever get. That’s why getting your mortgage rate at even a quarter percent lower can save you thousands of dollars in interest costs over the lifetime of your mortgage.
Want to know a few more ways to save on your mortgage?
Make sure your mortgage comes with prepayment privileges. Having a mortgage with this feature will give you the ability to put extra money on your mortgage, which will be applied to the principal amount, which in turn will reduce the overall amount of money that you’ll pay out in interest.
Another smart feature to have with your mortgage is portability. When you have a portable mortgage, you can take it with you if you decide to move to another house. This will save you money because you will avoid the charges that would come about if you had to close one mortgage and open a new one.
LowestRates.ca works with 50+ banks and brokers to bring you competitive mortgage rates from lenders in Canada and we’re always adding new ones. We work with our partners to obtain their best deals and offers, and then we let them compete for your business. All you have to do is answer a few questions, and in minutes you’ll be provided with today’s mortgage rates. There’s no obligation, but you can choose to speak with our broker partner to secure your best rate and see if you're eligible for more savings.
Yes, it’s safe — you no longer need to visit a bank branch or mortgage broker’s office in person to apply for a mortgage. It’s becoming increasingly common for Canadians to apply for mortgages online. LowestRates.ca only works with reputable, trustworthy financial institutions. Your credit score won’t be affected and your information is secure. We don’t share your information with anyone unless you want to connect with a mortgage broker. We take care of the heavy lifting by comparing the market for you and can connect you with the best mortgage lenders in the country.
We have a strong selection of lenders on LowestRates.ca including the big banks and many independent providers and we’re adding more lenders all the time. This ensures we’re always delivering you a competitive rate. Even if you’re not ready to commit to anything, you can use our site as a starting point for research (it’s totally free, and you’re under no obligation).
The better informed you are, the more likely you'll negotiate a better deal for yourself. And, really, that’s what we care about the most.
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