What is the average mortgage rate in Prince Edward Island, Canada?

The current 5-year fixed mortgage rate in Prince Edward Island is approximately 4.31%, and the variable rate is approximately 3.62% (Bank of Canada data, as of Apr 16, 2026). Rates vary by lender, term, and whether you require CMHC insurance.

Do I need CMHC insurance when buying a home in Prince Edward Island?

CMHC mortgage default insurance is required in Prince Edward Island when your down payment is less than 20% of the purchase price. Premiums range from 2.80% to 4.00% of the insured loan amount and are added to your mortgage balance — not paid at closing.

What is the stress test rate for mortgages in Canada?

Under OSFI Guideline B-20, all Canadian mortgage applicants must qualify at the higher of their contract rate plus 2%, or 5.25%. With a 5.24% contract rate, the qualifying rate is approximately 7.24%.

Mortgage Calculator for Prince Edward Island, Canada

Q: What is the land transfer tax in Prince Edward Island?

Prince Edward Island charges a Real Property Transfer Tax of 1% of the purchase price. The province also levies a provincial land tax annually. First-time buyers in PEI receive no specific transfer tax exemption.

Pre-filled with Prince Edward Island's average home price of C$355000, property tax of C$2840/year, and a 5-year fixed rate of 4.31%. Adjust any value below.

OSFI Stress Test: You must qualify at 7.24% (contract rate + 2%) under Canada's mortgage stress test rules. This calculator shows your actual payment — your lender will verify you can afford the stress-test rate.

Reference Rates

5-yr Fixed 4.31% Variable 3.62% Prime Rate 4.46% BoC Rate 2.2649%

Apr 16, 2026 · Bank of Canada

1 Loan Details

Home Price

Down Payment

Loan Amount

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Interest Rate (live 5-yr fixed 4.31%)

Amortization Period

2 Monthly Costs (Prince Edward Island averages pre-filled)

Property Tax (annual) ~0.8% in PE

Home Insurance (annual)

Condo Fees (monthly, if applicable)

Include CMHC Insurance

Required when down payment < 20%

Estimated Monthly Payment

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Enter your loan details to see your payment

Principal & Interest

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Property Tax

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Home Insurance

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Condo Fees

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Total Interest Paid

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Over loan lifetime

Total Cost

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Principal + interest

Loan Amount

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Amount financed

Down Payment

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Of home price

Monthly Payment Breakdown

Balance Over Time

Rate Comparison

How your payment changes with different interest rates

Rate Scenario	Monthly P&I	Total Interest
Enter loan details above to see rate scenarios

Amortization Schedule

Full month-by-month payment breakdown

Prince Edward Island Housing Market

Prince Edward Island experienced rapid price appreciation from 2020–2023, with Charlottetown becoming a competitive seller's market. Limited housing supply on the Island combined with in-migration has driven prices well above pre-pandemic levels. The Island's tourism economy and quality of life draw retirees and remote workers.

Average Home Price C$355000

Effective Property Tax Rate ~0.8%

Avg Annual Property Tax C$2840

Avg Annual Insurance C$1200

Stress Test Rate ~7.24%

Buying in Prince Edward Island

Despite recent appreciation, PEI still offers better affordability than central Canada. Charlottetown prices have cooled from peak levels, and rural properties remain significantly cheaper. Island wages, however, trend lower than national averages.

Land Transfer Tax

Prince Edward Island charges a Real Property Transfer Tax of 1% of the purchase price. The province also levies a provincial land tax annually. First-time buyers in PEI receive no specific transfer tax exemption.

CMHC Default Insurance

CMHC insurance applies on purchases with less than 20% down. PEI saw dramatic price growth post-2020, raising the threshold at which buyers can avoid CMHC fees.

Key Markets

Charlottetown Summerside Stratford Cornwall

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