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Mortgage Brokers & Professional Advisors in Prince Edward Island

Prince Edward Island mortgage brokers can help you save a lot of time and money finding the right rate. If you’re interested in mortgage brokers and advisors in PEI, look no further. We’ve broken down what PEI brokers do, how much they charge, and how they’re licensed to help customers find the right mortgage.

Key Takeaways:

  • Residential brokers in PEI do not always charge for their services, but may do so dependent of the circumstances of the transaction.
  • At nesto, we have 40+ mortgage brokers in Canada and PEI who can help you find the best mortgage rate possible. 

Finding a Mortgage Broker in Prince Edward Island

Mortgage brokers in PEI can help you get the best mortgage available, in one of Canada’s most unique provinces. Getting a mortgage in PEI can feel like a complicated process. Luckily, our mortgage brokers have relationships and experience that can help you find the best mortgage possible for your situation. At nesto, we have over 40 mortgage brokers in Canada, including PEI, who are here to help you find the best rate. If you’d like to connect with a mortgage broker in the province, just send us an enquiry and one of our team will be in touch right away.

Benefits of Using a Mortgage Broker

Trying to buy a home in PEI? Here are some of the benefits of using a broker instead of finding a mortgage on your own. For a full list of PEI mortgage brokers, check out the government of PEI’s licensee directory.

  • No fee for services: Mortgage brokers in Canada are paid by the lender once a borrower signs their mortgage contract. As a prospective home buyer, you don’t pay a mortgage broker a fee.
  • Save time: Mortgage brokers are already connected to several lenders, and will know what options are likely available to you based on your finances. Brokers can help save you time on research, and can provide expert advice to keep you from signing unfavorable mortgage contracts.
  • Get a better rate: Lenders work with some brokers exclusively to help them pre-select their clients. As a result, many brokers have access to solutions and mortgage rates not usually available to retail customers.
  • Peace of mind: A good mortgage broker will act in your best interests and try to get the best possible rate available for you. They’ll also understand the mortgage world better than most people, and can help guide you in the right direction.
  • You could save money: Besides saving you money on your mortgage rate, mortgages also come with a range of up-front fees, from appraisals to application fees. In some instances, your mortgage broker may be able to work with a lender to waive some of these fees, potentially saving you thousands in up-front costs.

Home Loan Options in Prince Edward Island

Thinking about buying a home in PEI? Whether you go through a broker or find your own mortgage, there are a number of things to keep in mind when looking for a property on the island. Here’s a breakdown of the major things to consider when funding your next home purchase. 

Buying a Home

PEI has seen a surprising amount of growth in the last few years, with prices remaining stable even after the slowdown that markets like Calgary or Toronto have all experienced, post-COVID-19. If you’re planning a move to PEI, we can help you find the best mortgage rate, and we also lend directly. If you need more information about the home buying process in PEI, check out our guide to buying a home.

Renewing Your Mortgage

All mortgage contracts have what’s known as a term. Usually, a term is 5 years long. When your mortgage’s term matures, it’s time to renew your mortgage. The renewal process gives you an opportunity to reflect on your finances, your mortgage needs, and current interest rates. To learn more, explore our detailed guide on How to Renew Your Mortgage

Refinancing Your Mortgage

Refinancing is different from mortgage renewal. Renewal is an ongoing process that occurs when a mortgage’s term expires. Many people typically renew their mortgage with the same lender after 5 years on similar terms, and without too much hassle. Refinancing, on the other hand, involves paying off your current mortgage by breaking it early and using another mortgage loan to cover it. People can refinance to take advantage of a lower interest rate, or access equity for things like debt consolidation and renovations. Depending on your current mortgage, refinancing your mortgage will probably incur a prepayment penalty for breaking your term early.

First-Time Home Buyer Plans

PEI has a number of provincial programs in place to help first-time home buyers find their first home. The island’s low house prices and wide open spaces have become more attractive to first-time buyers looking to start their life as homeowners in an otherwise booming Canadian housing market

Among the programs available to first time buyers in PEI, the government has created an interest-free loan known as the Down Payment Assistance Program (DPAP), giving funding assistance for up to 5% of the purchase price of the home to a maximum of $12,500. The provincial government of PEI also offers a Real Property Transfer Tax First-Time Home Buyers Exemption. Federally, it’s worth checking out the First-Time Home Buyer’s Tax Credit, and the Home Buyer’s Plan, to recoup more of the cost of buying a home in PEI.

Mortgage Brokers Association of Prince Edward Island

There is no central Mortgage Brokers Association for licensed professionals in PEI. However, the Canadian Mortgage Brokers Association (CMBA) does have a remit that encompasses the four Atlantic provinces, under CMBA-Atlantic, otherwise known as the Mortgage Brokers Association of Atlantic Canada (MBAAC). This non-profit organization with headquarters in Halifax, supports regulations that protect mortgage consumers in PEI and provides guidance to licensed real estate professionals.

Frequently Asked Questions (FAQ)

There are a lot of common questions about finding a mortgage broker in PEI. Here are some of the most frequently asked ones we’ve seen.

Is it worth going through a mortgage broker in Prince Edward Island?

In PEI, mortgage brokers (or Real Estate Agents, as they’re provincially known) can help you save money on your mortgage by getting a lower rate. Plus, you won’t have to pay a fee to use their services, since brokers in PEI are paid for by lender commission. Mortgage brokers in PEI undergo stringent experience, education, and licensing requirements to become qualified in PEI, and have good relationships with lenders. Overall, it’s definitely worth looking into finding a broker in PEI if you want to get the best deal on your mortgage, but it’s ultimately up to you. 

Is it better to use a bank or mortgage broker?

A Real Estate Agent (or mortgage broker) in PEI can help you explore the different options available for all your mortgage needs. Brokers in PEI are incentivised to find their customers the lowest rate possible, unlike banks, who may not have the same flexibility or low rates available for the general public. It’s always worth exploring both direct lenders and brokers as your options, as its free to do this kind of research.

How much do most mortgage brokers charge?

Mortgage broker commissions are paid by the lender, and can vary around PEI. A reasonable range for a broker’s commission in PEI is around 0.5% to 2% of your final mortgage. The exact percentage will also depend on the term, and type, of your mortgage.

Do you have to pay mortgage brokers?

No. Mortgage brokers in PEI are paid on the back-end by the lender. Lenders want to find borrowers who will pay back their loan on time and in full, so it makes sense for them to work with a broker to find great candidates. As such, as a borrower you won’t pay for a mortgage broker’s services in PEI.

Final Thoughts

Getting a home in Prince Edward Island is an exciting prospect. If you’re interesting in going through a mortgage broker, we have over 40 licensed brokers around the country who can help out. In PEI, using a mortgage broker can help you save time, hassle, and money, and our expert team are always on hand to help you get started. To find a broker near you, simply send us an enquiry now and we’ll be in touch right away.

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