Prince Edward Island mortgage rates & land transfer tax
Mortgage rates in PEI are the same national rates offered across Canada — Charlottetown buyers see the identical offers as buyers everywhere else. The closing-cost difference is a 1% land transfer tax with a notably generous first-time-buyer exemption. Here are the verified national offers and what the tax costs at real prices.
Mortgage rates are national, not provincial
No Canadian lender quotes a different rate in Prince Edward Island than it does anywhere else in the country — a five-year fixed in Prince Edward Island is the same number it offers nationwide. So the verified offers below apply to Prince Edward Island buyers exactly as they do across Canada. What genuinely changes by province is the cost of closing — above all, the land transfer tax.
Verified national mortgage rates
Verified at the source · July 30, 2026| Lender | Product | Rate | Type | |
|---|---|---|---|---|
| Nesto | 5-yr fixed · insured | 4.09% | special | source |
| DUCA | 5-yr fixed · insured high-ratio | 4.14% | special | source |
| First National | 5-yr fixed · insured · conventional 4.84 | 4.49% | posted | source |
| Tangerine | 5-yr fixed | 4.49% | special | source |
| TD | 5-yr fixed | 4.84% | special | source |
| BMO | 5-yr fixed · Smart Fixed — no full payout for 5 yrs except sale; insured 4.74 | 4.84% | special | source |
| National Bank | 5-yr fixed · high-ratio 4.69 | 4.84% | special | source |
| RBC | 5-yr fixed · high-ratio 4.59 | 4.89% | special | source |
| CIBC | 5-yr fixed · high-ratio 4.64 | 4.94% | special | source |
| Scotiabank | 5-yr fixed · specials not published | 6.09% | posted | source |
| Nesto | 3-yr fixed · insured | 4.14% | special | source |
| DUCA | 3-yr fixed · insured high-ratio | 4.24% | special | source |
| Tangerine | 3-yr fixed | 4.44% | special | source |
| BMO | 3-yr fixed · amortization ≤25y | 4.64% | special | source |
| TD | 3-yr fixed | 4.69% | special | source |
| National Bank | 3-yr fixed | 4.69% | special | source |
| CIBC | 3-yr fixed | 4.74% | special | source |
| RBC | 3-yr fixed | 4.74% | special | source |
| First National | 3-yr fixed | 4.94% | posted | source |
| Scotiabank | 3-yr fixed | 5.95% | posted | source |
| Nesto | 5-yr variable · insured | 3.40% | special | source |
| RBC | 5-yr variable · prime − 0.50 · high-ratio 3.65 | 3.95% | special | source |
| Tangerine | 5-yr variable | 4.00% | special | source |
| BMO | 5-yr variable · amortization ≤25y | 4.10% | special | source |
| CIBC | 5-yr variable · high-ratio flex 3.95 | 4.10% | special | source |
| National Bank | 5-yr variable | 4.10% | special | source |
| First National | 5-yr variable · prime − 0.26 · insured 3.70 | 4.19% | posted | source |
| TD | 5-yr variable · TD prime − 0.36 | 4.24% | special | source |
| Scotiabank | 5-yr variable · Flex Value | 4.90% | posted | source |
These are national offers — the same rates apply to Prince Edward Island buyers. Advertised special-offer rates for standard residential mortgages, read at each lender's own page. Insured (high-ratio) pricing is typically lower than uninsured; many lenders only advertise one. Brokers and smaller lenders frequently beat every rate in this table.
Land transfer tax in Prince Edward Island
Verified · June 12, 2026Prince Edward Island charges a land transfer tax of 1%, with no tax on transactions of $30,000 or less. It is calculated on the greater of the purchase price or the assessed value, and is due in cash on closing.
At a flat 1%, the tax is predictable, but the assessment-or-price rule means a higher assessment raises the bill. The worked examples below show the tax based on purchase price.
| Purchase price | Total land transfer tax |
|---|---|
| $500,000 | $5,000 |
| $800,000 | $8,000 |
| $1,000,000 | $10,000 |
These figures are computed for a regular (non-first-time) buyer and are due in cash on closing — they cannot be added to your mortgage. For an exact figure on your own price — including first-time-buyer relief — use the land transfer tax calculator.
First-time buyer help
PEI offers a full first-time-buyer exemption from land transfer tax, subject to PEI residency and a 183-day occupancy condition. Qualifying first-time buyers can have the entire 1% waived.
Good to know
- The 1% is charged on the GREATER of the purchase price or the assessed value, with no tax on transactions of $30,000 or less.
- The first-time-buyer exemption requires PEI residency and 183 days of occupancy — confirm you meet the conditions before counting on it.
- Land transfer tax is due in cash on closing and cannot be added to your mortgage.
- CMHC pegs total closing costs at roughly 1.5%–4% of the purchase price.
Run the numbers for Prince Edward Island
Rates are national; your closing cost is local. Calculate exactly what you'll pay.
Frequently asked questions
Are mortgage rates different in Prince Edward Island?
No. Mortgage rates in Canada are national — lenders quote the same five-year fixed or variable rate in PEI as anywhere else. The verified offers above apply to PEI buyers exactly as they do across the country. What changes is the closing cost, led by land transfer tax.
How much is land transfer tax in PEI?
PEI charges a flat 1% land transfer tax on the greater of the purchase price or the assessed value, with no tax on transactions of $30,000 or less. On an $800,000 home (assuming price is the greater figure) that is $8,000. The tax is due in cash on closing.
Do first-time buyers get relief in PEI?
Yes. PEI offers a full first-time-buyer exemption from land transfer tax, subject to PEI residency and a 183-day occupancy condition. Qualifying first-time buyers can have the entire 1% tax waived, which makes PEI relatively friendly for new entrants once the conditions are met.
Is PEI tax based on price or assessment?
It is charged on the greater of the two. If your property’s assessed value exceeds what you paid, the 1% tax is calculated on the assessment. Transactions of $30,000 or less are exempt, and qualifying first-time buyers can have the tax waived entirely.
Educational content, not financial advice or a rate guarantee. Mortgage rates are national; lender specials were read at each lender's own page on the stamped date and change without notice. Land transfer tax brackets, rates and rebates verified June 12, 2026 at official government sources and computed by RetireSmarter's land-transfer-tax engine — always confirm your exact figure with your lawyer or the relevant authority before closing.