What is the Prince Edward Island mortgage calculator?

With a Prince Edward Island mortgage calculator, you can easily estimate how much your regular mortgage payment could be and plan your household budget accordingly. In addition, this tool will help you compare different mortgage scenarios by adjusting the values entered as the key parameters of your loan. This way, you can choose an option that involves the mortgage payments you are comfortable with.

How to use the Prince Edward Island mortgage calculator on Finanso?

The Finanso Prince Edward Island mortgage calculator is easy to use. Just fill out the required fields with the key parameters of your mortgage — the home price, down payment, loan term, interest rate, amortization period, payment frequency, and additional details, if necessary. Then, hit the "Calculate" button and get the results.

Option 1. Calculation based on the property price on Prince Edward Island

To perform this operation, you will need our simple mortgage calculator that considers the loan amount, the term, and the repayment method. You may also be asked to specify the mortgage type or the interest rate if there are several mortgage options and only one calculating tool available on the page. Details necessary for the calculation:

The cost of the property. This field suggests you enter the property price you plan to purchase. Remember that you must make a down payment of at least 5% of the property's price.
The down payment. It is the initial up-front partial payment you have to make at the time of finalizing the transaction. In addition, you must purchase mortgage default insurance if your down payment is less than 20%.
The loan term. The mortgage term is the time your mortgage contract is in effect, while amortization is the time it will take you to pay your mortgage in full. The maximum amortization period on Prince Edward Island for insured residential mortgages is 35 years.
The mortgage interest rate. Our calculator takes into account the region's peculiarities. By default, the calculator has the average interest rate for the region where you calculate. In addition, minimum and maximum values for the country are embedded. You will see a notification if you input a value that does not correspond to the country.
Payment type. The calculator features the possibility to specify the mortgage type: annuity or linear. Annuity payments are undoubtedly convenient for both the borrower and the lender. Still, the client will expect a more significant overpayment due to a slower principal repayment.

To get an idea of an approximate monthly mortgage payment on Prince Edward Island, enter the values for the essential parameters of your mortgage into the designated fields in the Finanso Prince Edward Island mortgage payment calculator.

Let's illustrate this with an example. If you are buying a property for $355,000 and making a $145,000 down payment (the $210,000 mortgage amount), the term is five years, the interest rate is 5.25%, and the amortization period is 15 years, your monthly payment is $1,682. You will pay $52,832 toward the principal and $48,082 toward the interest throughout the term of your mortgage.

Option 2. Calculation based on the loan amount on Prince Edward Island

Mortgage calculators suitable for such operations feature the early repayment calculation option. The difference between this tool and the simple one is that it is possible to evaluate the mortgage details at once and see the change in the debt amount if early repayment occurs, which may be convenient when you intend to reduce the overpayment. Details necessary for the calculation:

The loan amount. This is the money you receive from the lender to purchase real estate (without considering the down payment). You might consider reviewing the maximum mortgage amounts the Prince Edward Island lenders grant at this point.
The loan term. The mortgage term is the time your mortgage contract is in effect, while amortization is the time it will take you to pay your mortgage in full. The maximum amortization period on Prince Edward Island for residential mortgages is 35 years.
The interest rate. Our calculator considers the region's peculiarities. By default, the calculator has the average interest rate for the area where you calculate. In addition, minimum and maximum values for the country are embedded. You will see a corresponding notification if you input a value that does not correspond to the country.
Early repayment. This field allows you to choose the type of early repayment (partial or full). Next, select the repayment date and the amount you are going to pay.

Option 3. Calculation based on the total cost of purchasing a property on Prince Edward Island

A mortgage calculator featuring more details is necessary to calculate the total cost of acquiring a property. This calculator differs from the previous tools in that it considers the tax burden, such as a provincial land transfer tax, default insurance, and additional expenses, for example, an origination or a brokerage fee. In addition, it allows for more accurate calculations. Details necessary for the calculation:

The cost of the property. In this field, enter the cost of the property you are planning to purchase. Remember that you must make a down payment of at least 5% of the property's price.
The down payment. It is the initial up-front partial payment you have to make when at the time of finalizing the transaction;
The loan term. The mortgage term is the time your mortgage contract is in effect, while amortization is the time it will take you to pay your mortgage in full. The maximum amortization period on Prince Edward Island for residential mortgages is 35 years.
The interest rate. Our calculator takes into account the region's peculiarities. By default, the calculator has the average interest rate for the region where you calculate. In addition, minimum and maximum values for the country are embedded. You will see a corresponding notification if you input a value that does not correspond to the country.
Additional data.

The mortgage loan term on Prince Edward Island

The standard mortgage loan term for Prince Edward Island is typically 25 years, although borrowers can choose a loan term that best suits their financial situation, ranging from 1 to 30 years. When choosing a mortgage loan term, it is essential to consider factors such as monthly payments, interest rates, and long-term financial goals. In addition, it's advisable to seek advice from a financial advisor or a mortgage specialist for a more personalized recommendation.

What is the minimum mortgage amount on Prince Edward Island?

There is no specific minimum mortgage amount set for Prince Edward Island, as the amount varies depending on the lender and the borrower's financial situation. However, many lenders have a minimum loan requirement, usually around $50,000.

What is the maximum mortgage amount on Prince Edward Island?

A specific governing body or organization does not set the maximum mortgage amount for Prince Edward Island. Instead, it depends on various factors, such as the borrower's income, credit score, debt-to-income ratio, and the value of the purchased property.

Lenders will typically have their own guidelines and requirements for determining the maximum mortgage amount they are willing to offer to a borrower. This can vary from lender to lender, but generally, the maximum mortgage amount is calculated by considering the borrower's ability to repay the loan based on their income and debt obligations. For conventional mortgage loans, lenders typically require a gross debt service ratio of no more than 39%. This means that a borrower's housing costs, including mortgage payments, property taxes, and heating expenses, should not exceed 39% of their gross monthly income.

In Canada, the maximum mortgage amount is often capped at 80% of the property's appraised value or purchase price, whichever is lower. However, this is not a hard-and-fast rule, and the exact maximum mortgage amount will depend on the lender's specific guidelines and requirements.

In Canada, the maximum mortgage amount that can be insured by the Canada Mortgage and Housing Corporation (CMHC) is $1,000,000.

How much do I need for a down payment on a mortgage loan on Prince Edward Island?

A down payment on a mortgage loan in Prince Edward Island is a portion of the total cost of a property that is paid upfront in cash at the time of purchase. The down payment size can vary and is typically expressed as a percentage of the total purchase price. The exact amount will depend on various factors, including the type of mortgage loan, the lender's requirements, and the borrower's financial situation. Generally, a down payment of at least 5% of the purchase price is required for a mortgage loan in Canada. However, the amount can be higher for certain types of mortgages or if the lender has stricter requirements.

If your down payment is less than 20%, you will be required to purchase mortgage insurance, known as CMHC insurance.

Who can take out a mortgage on Prince Edward Island?

Anyone over the age of majority and who meets the eligibility requirements set by the lender can apply for a mortgage loan on Prince Edward Island. The eligibility requirements for a mortgage loan can vary from lender to lender but generally include the following:

Proof of income: Borrowers must be able to demonstrate a stable and sufficient income to repay the loan.
Credit score: A good credit score is usually required to qualify for a mortgage loan.
Debt-to-income ratio: Lenders want to ensure that borrowers are not overextended in their debt obligations, so they typically look at the ratio of a borrower's debt obligations to their income.
Down payment: A down payment is usually required to secure a mortgage loan. The amount will depend on the lender's requirements and the type of loan being applied for.
Employment history: Borrowers must have a stable employment history, and some lenders may require proof of employment and income.
Property value: The value of the purchased property must be sufficient to secure the mortgage loan.

Meeting these requirements does not guarantee approval for a mortgage loan. Lenders will also consider other factors, such as the type of property purchased, the loan amount requested, and the borrower's overall financial situation.

Types of mortgages on Prince Edward Island

Several types of mortgages are available on Prince Edward Island, each with its terms, conditions, and benefits. Some of the most common types of mortgages include:

Conventional mortgage: This is a traditional mortgage loan that the government does not back. Conventional mortgages typically have more flexible terms and conditions than other types of mortgages.
High-ratio mortgage: This type of mortgage is for borrowers who want to purchase a property with a down payment of less than 20% of the purchase price. High-ratio mortgages require mortgage default insurance, which protects the lender if the borrower cannot repay the loan.
Fixed-rate mortgage: This type of mortgage offers a fixed interest rate for the entire term of the loan. The interest rate remains the same, even if market interest rates change.
Variable-rate mortgage: This type of mortgage offers an interest rate that can change over time based on changes in the market. A variable mortgage's interest rate is usually tied to the lender's prime rate.
Hybrid mortgage: This type of mortgage combines features of both fixed-rate and variable-rate mortgages. The interest rate is fixed for a portion of the term, and for another, it is variable.
Open mortgage: This type of mortgage allows the borrower to repay the loan in full or in part at any time without penalty.
Closed mortgage: This type of mortgage restricts the borrower from making prepayments or paying off the loan in full before the end of the term.

The type of mortgage best for borrowers will depend on their financial situation, borrowing needs, and long-term financial goals. Borrowers are encouraged to speak with a mortgage professional or financial advisor to determine the best mortgage product for their needs.

Where to get a mortgage on Prince Edward Island?

There are several places where you can get a mortgage on Prince Edward Island, including:

Banks: Major banks and other financial institutions offer a range of mortgage products and services, including conventional and high-ratio mortgages. For example, RBC, TD, Scotiabank, BMO, and CIBC, as well as National Bank of Canada, Equitable Bank, Laurentian Bank, HSBC, Simplii Financial, Tangerine Bank, Motusbank, Canadian Western Bank, and Manulife.
Credit Unions: Credit unions are a popular choice for borrowers on Prince Edward Island, as they offer a range of mortgage products and services and may have more flexible lending criteria compared to major banks. For example, Consolidated Credit Union, Evangeline-Central Credit Union, Malpeque Bay Credit Union, Morell Credit Union, Provincial Credit Union, Souris Credit Union, and Tignish Credit Union.
Online lenders: Online lenders offer a range of mortgage products and services, including digital pre-approvals, streamlined application processes, and competitive interest rates.
Mortgage brokers: Mortgage brokers work with multiple lenders to find the best mortgage products and services for their clients. They can help borrowers compare different mortgage products and services and find the best option for their needs. For example, Breezeful, Mortgage Architects, Mortgage Centre, Dominion Lending Centres, Centrum, Nesto, Invis, and Premiere Mortgage Centre.

It's important to shop around and compare different mortgage products and services to find the best mortgage for your needs. Borrowers are encouraged to speak with a mortgage professional or financial advisor to determine the best mortgage product for their needs.

Mortgage calculator in Prince Edward Island of March 2025