PEI Mortgage Rates

Prince Edward Island is Canada’s smallest province, but it is also Canada’s most densely populated province. Apart from the main island, PEI also includes 231 minor islands. Over 90% of all jobs created in the province from 2008 to 2015 was located in the province’s capital city, Charlottetown. Summerside is the only other city on the island, with towns including Stratford, Three Rivers, and Cornwall. As of 2023, PEI’s population was 173,954, with the highest growth rate out of all other Canadian provinces since 2017.

For November 2024, the average price of a home in PEI was $401,343. That’s an annual increase of 9.41%. In comparison, the average price of a home in Canada was $-. This means that a home in PEI is - cheaper than the national average home price.

While PEI home prices are affordable compared to other housing markets in Canada, the province’s average home price has more than doubled since 2016.

All of Canada’s Six Big Banks, RBC, TD, Scotiabank, BMO, CIBC, and National Bank, have bank branches located in PEI. Scotiabank has the highest number of branches at seven, followed by CIBC with six branches.

There are four credit unions based in PEI. These are: Consolidated Credit Union, Morell Credit Union, Provincial Credit Union, and Souris Credit Union. All four of these credit unions offer residential mortgages in PEI.

Since 2021, Provincial Credit Union has acquired Evangeline-Central Credit Union, Malpeque Bay Credit Union, and Tignish Credit Union.

Mortgage brokers in PEI are licensed as real estate agents under PEI’s Real Estate Trading Act and Regulations. Real estate agents and brokers are licensed by the Prince Edward Island Real Estate Association.

National mortgage brokers all operate in PEI, such as Dominion Lending Centres, Invis, The Mortgage Centre, and Mortgage Architects. Local mortgage brokers include Premiere Mortgage Centre PEI.

PEI has a land transfer tax of 1% on the portion of the purchase price or home value over $30,000. With an average home being $401,343 in PEI, this means that the average land transfer tax in PEI would be $3,713.

PEI First-Time Home Buyers Rebate

First-time home buyers can receive a rebate of their land transfer tax when buying a home in PEI. This can save first-time home buyers $3,713, based on the average price of a home in PEI of $401,343.

Since home prices in PEI are relatively low compared to other provinces, mortgage payments are low too. In 2023, the average mortgage payment in PEI was $1,422 per month, while the average mortgage payment in Charlottetown was $1,498 per month. In comparison, the average mortgage payment in Toronto was $2,962 per month! Homeowners in PEI are paying less than half of what homeowners in Toronto would pay on their mortgage.