Prince Edward Island mortgage hub — 2026-05-26

Prince Edward Island Mortgage Rates 2026: Rates, Land Transfer Tax & Stress Test

5-year fixed broker floor: 4.04% · Variable broker floor: 3.60% · Qualifying income for median Prince Edward Island home (~$290K): approximately $77,538/yr.

Paid report options after the free check: Rate Fairness Report CA$24 · Full Renewal Decision Report CA$49. No broker calls. No data sold.

Current Prince Edward Island benchmark mortgage rates

Canadian mortgage rates are set nationally — the benchmark is the same in Prince Edward Island as across Canada. The table below shows current estimated benchmark rates for all terms, based on Bank of Canada data. Rates assume excellent credit (750+ score) and represent the best available pricing tier.

Prince Edward Island benchmark mortgage rates — all terms, excellent credit

TermFixed broker floorFixed bank avgVariable broker floor
1-Year4.54%4.79%3.60%
2-Year4.34%4.59%3.60%
3-Year4.19%4.44%3.60%
4-Year4.09%4.34%3.60%
5-Year4.04%4.29%3.60%
7-Year4.24%4.49%3.60%
10-Year4.49%4.74%3.60%

Prince Edward Island: land transfer tax

Prince Edward Island charges a Real Property Transfer Tax (RPTT) on real estate sales.

First-time buyers may be exempt from RPTT on homes under $200,000 — an increasingly rare scenario given PEI's price appreciation. Confirm current thresholds with a PEI lawyer.

First-time buyer rebate: PEI first-time buyers may be exempt from RPTT on homes under $200,000. Verify current thresholds and eligibility criteria before closing.

Prince Edward Island land transfer tax brackets

Value thresholdTax rate / fee
Above prior bracket1.0% of purchase price

Stress test: qualifying for a Prince Edward Island home

For the Prince Edward Island median purchase price of approximately $290,000 with 10% down ($29,000):

Mortgage amount: $261,000 · Stress test qualifying rate: 6.04% · Monthly P&I at qualifying rate: $1,676/month · Annual PITH: ~$24,812 · Required gross income (32% GDS): approximately $77,538/year.

PEI borrowers qualify at the federal stress test rate. PEI's housing market has experienced significant price growth since 2020, driven by in-migration.

Prince Edward Island: regulatory environment

Mortgage brokers and lenders in Prince Edward Island are regulated by the Island Regulatory and Appeals Commission (IRAC). Borrowers in Prince Edward Island can access the full range of federally regulated banks, provincially regulated credit unions, and monoline lenders through the broker channel.

Major cities in Prince Edward Island: Charlottetown, Summerside, Stratford, Cornwall.

CMHC mortgage insurance applies in Prince Edward Island for eligible purchases under $1,500,000 with less than 20% down (as of December 2024).

Browse Prince Edward Island mortgage rates by scenario

Select your term, rate type, credit tier, and intent to see a detailed rate page for your exact borrower scenario in Prince Edward Island.

Prince Edward Island renewal shock: 2021–2023 mortgages renewing now

Many Prince Edward Island borrowers are renewing mortgages locked in at historically low rates between 2019 and 2023. If you locked in during this period, your renewal represents a significant payment change.

Select your original term and year to see your specific renewal shock analysis:

Frequently asked questions

What is the current mortgage rate in Prince Edward Island?

The current 5-year fixed mortgage broker floor in Prince Edward Island is approximately 4.04% and the bank average is 4.29%. Variable rate broker floor is approximately 3.60%. These are national benchmark rates that apply equally in all provinces.

What is the land transfer tax in Prince Edward Island?

Prince Edward Island charges a Real Property Transfer Tax (RPTT) on real estate sales. First-time buyers may be exempt from RPTT on homes under $200,000 — an increasingly rare scenario given PEI's price appreciation. Confirm current thresholds with a PEI lawyer.

What income do I need to buy a home in Prince Edward Island in 2026?

For a Prince Edward Island median home price of approximately $290,000 with 10% down, you need approximately $77,538 in gross annual income under the 2026 stress test at 6.04%. This is an estimate — your lender calculates your exact qualifying income.

Are there first-time buyer programs in Prince Edward Island?

Yes — PEI first-time buyers may be exempt from RPTT on homes under $200,000. Verify current thresholds and eligibility criteria before closing. The federal FHSA is also available to eligible first-time buyers in all provinces.

Who regulates mortgage brokers in Prince Edward Island?

Mortgage brokers in Prince Edward Island are regulated by the Island Regulatory and Appeals Commission (IRAC).