- Closing costs in Prince Edward Island: Prince Edward Island charges real property transfer tax of 1% of the greater of the purchase price or assessed value.
- The federal stress test and down payment rules apply in every province.
- Mortgage brokers are licensed under PEI's Mortgage Brokers Act.
What are today's best mortgage rates in Prince Edward Island?
| Term | Rate | Lender type | Shelf / note | Payment on $400,000 |
|---|---|---|---|---|
| 5-year fixed | 4.04% | Credit union | uninsured | $2,113/mo |
| 5-year variable | 3.70% | Brokerage | prime − 0.75% | $2,046/mo |
| 3-year fixed | 4.19% | Monoline | uninsured | $2,145/mo |
| HELOC | 4.95% | Bank | prime + 0.50% | — |
Payments on a $400,000 mortgage, 25-year amortization, fixed rates compounded semi-annually. Prime 4.45% (Bank of Canada policy rate 2.25%), October 7, 2026.
Who lends in Prince Edward Island?
What does it cost to close in Prince Edward Island?
Prince Edward Island charges real property transfer tax of 1% of the greater of the purchase price or assessed value. Eligible first-time buyers can have it waived.
| Item | Amount |
|---|---|
| Transfer tax / registration fees (incl. mortgage fee where charged) | $3,500 |
| Effective rate | 1.00% |
Mortgage registration estimated at 80% of price where charged. Rules checked October 7, 2026.
Mortgage rules in Prince Edward Island
Mortgage brokers are licensed under PEI's Mortgage Brokers Act. National rules apply everywhere: minimum down payment of 5% to 20%, the stress test (the greater of your rate + 2% or 5.25%), and insured mortgages only on homes under $1.5 million.
HELOC in Prince Edward Island
Prince Edward Island homeowners can get a HELOC up to 65% of value, or 80% combined with a mortgage. Bids show the rate as prime plus a margin. See HELOC.
First-time home buyer programs in Prince Edward Island
Real property transfer tax waiver for eligible first-time buyers; federal programs apply. First-time home buyer programs in Prince Edward Island
Frequently asked questions
Are mortgage rates different in Prince Edward Island?
Most national lenders price provinces similarly; differences come from which lenders serve the area, property type and local closing costs.
Do I need a mortgage broker in Prince Edward Island?
Not to get bids. Licensed brokerages bid alongside lenders on MortgageBids.ca.
Can I renew with a different lender in Prince Edward Island?
Yes, at maturity with no prepayment penalty.
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