KANETIX gives you access to our large collection of mortgage products with its one-of-a-kind mortgage shopping experience. For the first time in Canada, residents of Prince Edward Island are able to compare and secure the best mortgage rates online! What's more we provide a rate guarantee certificate with all of the mortgage details. Acquiring a mortgage has never been easier!

Give our user-friendly mortgage payment calculator a try to understand the different factors that impact your payments. Test out different variables such as the mortgage amount, payment frequency, amortization and the interest rate to understand how these variables affect your repayment schedule. Make your mortgage shopping experience informing and fun.

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Acquiring a mortgage in Prince Edward Island

Prince Edward Island is Canada's smallest province that is considered to be a peaceful getaway . Purchasing a home in P.E.I. usually requires a mortgage that can be financed through a chartered bank, credit union or trust company. The mortgage rate is the interest that you are required to pay on the loan. Your mortgage payment is split into paying off the interest and the principal amount.

Finding the best mortgage loan in Prince Edward Island

Finding the best mortgage loan in P.E.I. requires you to shop around. Much like buying a car; you have better odds of finding a bargain if you educate yourself about the market first. Fortunately, KANETIX does all the comparison-shopping for you, providing you with the best mortgage rates from a variety of different lenders and brokers!

Here are some tips to guide you in the process of finding your ideal rate:

  • Use KANETIX. Visiting various brokers to learn about rate options can be a very time consuming task. Let us do all the work for you by comparing different mortgage products from a vast number of lenders and brokers. Remove the stress and time pressure that mortgage shopping can bring.
  • Compare broker and lender mortgage rates, all in one place. KANETIX works with some of the most experienced mortgage brokers in the country. Once you are ready to secure a rate, give us a call and one of our partner mortgage brokers will assist you.
  • Keep your knowledge up to date. Learning about mortgages can help you make more informed decision that will benefit you in the long run. Visit our mortgage infocentre for useful content about things like mortgage rules and tips for prospective home buyers. Check out our mortgage glossary if you ever see a mortgage-related word or phrase you want to understand.

Read more about mortgages in Prince Edward Island>>

Types of mortgages in Prince Edward Island

When deciding on a mortgage, you have the choice between a variable and a fixed rate mortgage. You also have the freedom to select an open or closed mortgage.

A fixed rate mortgage has a set rate and will not change throughout the duration of your mortgage term. A variable rate mortgage has a rate that can change with the prime-lending rate, set by the Bank of Canada. Variable rate mortgages could have lower rates relative to fixed rate mortgages, but run the risk of a rate increase in over the term of the mortgage.

Choosing between an open or closed mortgage will depend on your financial situation, cash flow and repayment plans. Open mortgages allow you to contribute towards the principal at your discretion. A closed mortgage is more limited as it has pre-payment limitations.

What are High Ratio and Conventional Mortgages?

If your down payment/home equity is greater than 20 per cent of the property value than you would qualify for a conventional mortgage; this applies to a first mortgage, second mortgage, renewal or a refinance. Alternatively, if your down payment is lower than 20% of the home value, you would qualify for a high ratio mortgage, requiring you to purchase mortgage insurance. The cost of this insurance is usually 1.75 - 2.75 per cent of the mortgage amount.

Other mortgage features

It is important to be informed about the different features of the available mortgage products. Focusing solely on the lowest rate has potential flaws. Consider the following characteristics of various mortgages when shopping around:

  • Rate hold- Take a look at the rate hold period to find out the duration of your rate guarantee. This is an important factor to consider in the instance of a potential rate increase.
  • Payment frequency- It is recommended to avoid default monthly payment, as weekly rapid or bi-weekly rapid repayment options can make you debt free faster!
  • Pre-payment restrictions- Consider the limits to the lump-sum payments and the allowable monthly payment increase for closed mortgages.
  • Amortization period- Adjusting your amortization period will change the amount of your monthly payment. A longer amortization period will reduce your monthly payments, but will increase the period of time over which the mortgage is paid off.

Factors that can change your rate

Here are some important factors that can affect your mortgage rate. It is important for you to be honest and transparent on your mortgage application.

  • Credit Score- If you have a high credit score, you may qualify for lower rate, as a lender sees you less likely to default on your payment
  • Mortgage Timing- If the mortgage is purchased within a certain time period (i.e. within 30 days), some lenders may offer a rate discount.

Our innovative and user-friendly mortgage comparison service can also be found in Ontario, New Brunswick, Manitoba, Saskatchewan, Nova Scotia, Newfoundland and Alberta.

Province of P.E.I. General Information

  • Population (2011): 146,105 (0.42 per cent of Canada)
  • Population Makeup (2006): 96.8 per cent Canadian born; 3.2 per cent foreign born
  • Average annual population growth (2001 - 2011): 1.8 per cent
  • Median family income (2010): $ 63,610
  • GDP (August 2012): $5 billion (0.3 per cent of Canada)
  • Unemployment rate (August 2012): 11.3 per cent
  • CPI Inflation (August 2012): 2.9 per cent

Sources: Stats Canada.

The P.E.I. Real Estate Market

  • Housing starts (2011): 940
    • Year-over-year change: 24.0 per cent
  • Average Residential resale price (Q4 2012 YTD): $132,000
    • Year-over-year change: 4.0 per cent

Sources: CMHC

This summary is for informational purposes only and should not be relied upon without verification by contacting a mortgage professional.

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