Mortgage: Compare the Best Rates in Prince Edward Island

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

Month	Average LR.ca 5-year fixed rate	Average bank 5-year fixed rate
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%
Nov 2018	3.37%	5.34%
Dec 2018	3.42%	5.34%
Jan 2019	3.33%	5.34%

Feb 2018
Mar 2018
Apr 2018
May 2018
Jun 2018
Jul 2018
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Jan 2019

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:

^$439

Per month

^$5,264

Per year

^$131,596

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

Month	Average LR.ca 5-year fixed rate	Average LR.ca 5-year variable rate
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%
Nov 2018	3.37%	2.62%
Dec 2018	3.42%	2.61%
Jan 2019	3.33%	2.63%

Feb 2018
Mar 2018
Apr 2018
May 2018
Jun 2018
Jul 2018
Aug 2018
Sep 2018
Oct 2018
Nov 2018
Dec 2018
Jan 2019

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:

^$142

Per month

^$1,705

Per year

^$42,618

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

Average home prices by province and territory

Prince Edward Island vs. Canada

Province and territory	Average 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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