Best Variable Rate
True North Mortgage

True North Mortgage

Term 5 Year
Type Variable Closed
Rate 2.75%
Best Fixed Rate
True North Mortgage

True North Mortgage

Term 5 Year
Type Fixed Closed
Rate 3.39%
BMO Bank of Montreal

BMO Bank of Montreal

Term 5 Year
Type Variable Closed
Rate 4.10%
BMO Bank of Montreal

BMO Bank of Montreal

Term 6 Months
Type Fixed Closed
Rate 4.20%
True North Mortgage

True North Mortgage

Term 1 Year
Type Fixed Closed
Rate 3.39%
BMO Bank of Montreal

BMO Bank of Montreal

Term 5 Year
Type Fixed Closed
Rate 3.69%
First National

First National

Term 5 Year
Type Fixed Closed
Rate 3.79%
Scotiabank

Scotiabank

Term 5 Year
Type Fixed Closed
Rate 5.44%
TD Canada Trust

TD Canada Trust

Term 5 Year
Type Fixed Closed
Rate 5.59%

Prince Edward Island mortgage rates

LowestRates.ca helps Prince Edward Islanders find and compare the best rates from all the top mortgage brokers and banks in the province. Our service is free and there’s no obligation on your part — just select the type of mortgage you’re looking for and we’ll show you the lowest rates, all together for you to compare, instantly.

Check out the charts below to see how much you can save by comparing rates and to find out more about PEI’s housing market.

Lower rates = huge savings

You should never settle for the first mortgage rate you see, especially when you can save tens of thousands of dollars just by shopping around. Our average 5-year fixed rates have been consistently lower than posted bank rates by at least 2 full percentage points.

On a $400,000 mortgage, that difference would result in more than $100,000 of savings over the life of your loan. Whether you’re house hunting in Charlottetown, Summerside, or anywhere else in PEI, those savings could have a massive impact on your finances.

Mortgage Interest Savings in Canada:
5-year fixed from LR.ca vs. 5-year fixed posted bank rate
MonthAverage LR.ca 5-year fixed rateAverage bank 5-year fixed rate
Nov 2017 2.79% 4.99%
Dec 2017 2.71% 4.99%
Jan 2018 2.93% 5.14%
Feb 2018 3.01% 5.14%
Mar 2018 3.07% 5.14%
Apr 2018 3.08% 5.14%
May 2018 3.18% 5.34%
Jun 2018 3.16% 5.34%
Jul 2018 3.14% 5.34%
Aug 2018 3.19% 5.34%
Sep 2018 3.17% 5.34%
Oct 2018 3.29% 5.34%
Average LR.ca 5-year fixed rate Average bank 5-year fixed rate 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 5.5%
  • Nov 2017
  • Dec 2017
  • Jan 2018
  • Feb 2018
  • Mar 2018
  • Apr 2018
  • May 2018
  • Jun 2018
  • Jul 2018
  • Aug 2018
  • Sep 2018
  • Oct 2018
On average, LR.ca rates are more than 2 full percentage points lower than posted bank rates.

On a $400,000 mortgage that’s an average savings of:

$437
Per month
$5,239
Per year
$130,974
Per lifetime

Variable or fixed: which is lower?

You can obviously save a ton of money by shopping around for a mortgage, but how do the best variable rates compare to the best fixed rates? We compared the LR.ca 5-year fixed rate mortgages and LR.ca 5-year variable rate mortgages that Canadians applied for on our site and found that variable rates are almost half a percentage point lower.

Mortgage Interest Savings in Canada:
5-year variable vs. 5-year fixed from LR.ca
MonthAverage LR.ca 5-year fixed rateAverage LR.ca 5-year variable rate
Nov 2017 2.79% 2.04%
Dec 2017 2.71% 1.93%
Jan 2018 2.93% 2.11%
Feb 2018 3.01% 2.22%
Mar 2018 3.07% 2.21%
Apr 2018 3.08% 2.19%
May 2018 3.18% 2.22%
Jun 2018 3.16% 2.16%
Jul 2018 3.14% 2.32%
Aug 2018 3.19% 2.45%
Sep 2018 3.17% 2.42%
Oct 2018 3.29% 2.48%
Average LR.ca 5-year fixed rate Average LR.ca 5-year variable rate 1.5% 2.0% 2.5% 3.0% 3.5%
  • Nov 2017
  • Dec 2017
  • Jan 2018
  • Feb 2018
  • Mar 2018
  • Apr 2018
  • May 2018
  • Jun 2018
  • Jul 2018
  • Aug 2018
  • Sep 2018
  • Oct 2018
On average, our variable rates are almost half a percent lower than our fixed rates.

On a $400,000 mortgage that’s an average savings of:

$102
Per month
$1,222
Per year
$30,548
Per lifetime

Variable or fixed: which is more popular?

Variable or fixed? That’s the question many PEI borrowers are asking. Let’s just say that of the hundreds of thousands of Canadians who have shopped for a mortgage at LowestRates.ca, the majority have taken 5-year variable rate loans. That’s probably because 5-year variable rates have been significantly lower than 5-year fixed rates and look set to remain that way for the foreseeable future.

5-Year Fixed Rates vs. 5-Year Variable Rates in Canada: Who Takes What?✝
57%
of Canadians apply for 5-year variable mortgages
43%
of Canadians apply for 5-year fixed mortgages

✝Based on Canadian borrowers who applied for a mortgage at LowestRates.ca since 2014.

Prince Edward Island housing

After a relatively strong 2014, PEI housing slowed in 2015 and 2016, with average resale prices actually falling by a few thousand dollars. A struggling economy and a weak job market are the main forces behind the decline. Unfortunately, the Canada Mortgage and Housing Corporation (CMHC) has a relatively dim forecast for the remainder of 2016: declines in PEI resale prices and in overall housing activity are expected to continue. But for buyers in PEI, falling mortgage rates mean homeownership has gotten even cheaper over the last year.

Resale Home Prices in Prince Edward Island
Prince Edward Island
Canada
2013 Q1 2013 Q2 2013 Q3 2013 Q4 2014 Q1 2014 Q2 2014 Q3 2014 Q4 2015 Q1 2015 Q2 2015 Q3 (F) 2015 Q4 (F) 2016 Q1 (F) 2016 Q2 (F) $0k $200k $400k $600k $165,000 $441,800

Average home prices by province and territory

Prince Edward Island vs. Canada
Province and territoryAverage home price (2016)*Year-over-year change
Prince Edward Island$165,406+0.0%
Alberta$395,648+2.7%
British Columbia$625,871-6.4%
Manitoba$282,511+4.2%
Newfoundland and Labrador$265,395-2.4%
New Brunswick$158,295+2.0%
Nova Scotia$218,332+1.7%
Northwest Territories$423,222-0.1%
Ontario$571,696+21.2%
Quebec$291,232+2.6%
Saskatchewan$292,303+0.4%
Yukon$289,312-15.9%

*Numbers courtesy of The Canadian Real Estate Association (CREA), November 2016

About Prince Edward Island

Prince Edward Island, made up of one island of the same name plus 231 minor islands, is the smallest Canadian province. It’s located in the Gulf of St. Lawrence, north of Nova Scotia and east of New Brunswick. The Confederation Bridge, at 12.9 kilometres long, carries the Trans-Canada Highway across the Northumberland Strait. The bestselling novel, Anne of Green Gables, was inspired by the lush landscape of the island and contributed to the province's reputation for natural beauty. Charlottetown, the province's capital, has a special place in Canadian history as the "Birthplace of Confederation," because it hosted the inaugural meeting in the process leading to Canada’s formation.

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