Best 5-year variable mortgage rates in Prince Edward Island.
Today’s best 5-year variable rate in Prince Edward Island is 3.50%. We compare 5-year variable rates across 100+ Canadian lenders for Prince Edward Island and lock your best on one application, with no bureau pull to start.
The best 5-year variable rate in Prince Edward Island today is approximately 3.50% — about $1,606/month on Prince Edward Island’s average price of $402,099 with 20% down over a 25-year amortization. A 5-year variable is the term for borrowers who expect rates flat-to-lower and want the cheapest exit. PEI has thin lender competition — Big-6 + monolines plus Provincial Credit Union dominate.
Insured vs uninsured: the lowest 5-year variable rates are usually insured pricing: a purchase with less than 20% down, backed by CMHC, Sagen or Canada Guaranty. Uninsured files (20%+ down, homes over $1.5M, refinances) typically price higher. APR is shown only where the lender publishes one that differs from the rate.
Rates illustrative; your file (credit, income, LTV) sets your personalized rate. See all Prince Edward Island rates →
Prince Edward Island mortgage payments by term
| Term | Best rate | Est. monthly payment* |
|---|---|---|
| 5-Year Fixed | 4.19% | $1,725/mo |
| 5-Year VariableLowest | 3.50% | $1,606/mo |
| 3-Year Fixed | 4.04% | $1,699/mo |
| 3-Year Variable | 3.55% | $1,615/mo |
| 2-Year Fixed | 3.99% | $1,690/mo |
| 1-Year Fixed | 4.19% | $1,725/mo |
| 4-Year Fixed | 4.24% | $1,734/mo |
| 7-Year Fixed | 5.00% | $1,871/mo |
| 10-Year Fixed | 5.34% | $1,934/mo |
Is a 5-year variable right for you in Prince Edward Island?
Who it suits. Borrowers comfortable with some payment movement in exchange for a usually-lower starting rate and a far cheaper break cost. It suits people who might move, refinance, or sell within the term, and those who believe the Bank of Canada's next moves are cuts rather than hikes.
What drives the rate. A 5-year variable moves with your lender's prime rate, which tracks the Bank of Canada's overnight policy rate. When the Bank cuts, your rate (and often your payment) falls within weeks; when it hikes, it rises. The variable-versus-fixed gap (the 'spread') widens and narrows with the market's rate outlook.
Breaking it early. The break penalty is only three months' interest, typically a fraction of a fixed mortgage's IRD, which is the single biggest reason mobile or uncertain borrowers choose variable.
The most popular variable term; its share swings with the rate cycle. You accept payment uncertainty in exchange for a cheaper exit and upside if rates fall.
What’s specific to Prince Edward Island
The Prince Edward Island rate market. PEI has thin lender competition — Big-6 + monolines plus Provincial Credit Union dominate. Tourism-economy short-term-rental investor files have become common since 2020 (especially in Charlottetown and the North Shore).
Top Prince Edward Island lenders to compare. Prince Edward Island’s 5-year variable pricing is shaped by a distinct lender mix: RBC, Scotiabank, Provincial Credit Union, TD, MCAP and others all bid for files here, and we shop the whole panel on one application. Foreign-buyer rules: Federal foreign-buyer ban applies through 2027. PEI separately requires non-resident buyer approval for properties exceeding 5 acres or shore frontage greater than 165 feet (Lands Protection Act).
Closing costs. On top of the rate, budget for pei real property transfer tax — flat 1.0% on the greater of purchase price or assessed value. Calculated at closing. First-time buyers are exempt from the Real Property Transfer Tax entirely, with NO purchase-price limit — the $200,000 cap often quoted online was removed in 2016. Eligibility turns on Canadian citizenship or permanent residence, six months of principal residence in PEI (or two of the last six years filed here), never having owned a principal residence anywhere, and not having claimed the exemption before. Run the full number in our Prince Edward Island land transfer tax calculator.
A worked example for Prince Edward Island
On Prince Edward Island’s average price of $402,099 with 20% down ($80,420), the mortgage is $321,679. At today’s best 5-year variable rate of 3.50% over a 25-year amortization, that’s about $1,606/month using Canadian semi-annual compounding. That payment moves with prime over the term. Model your own price in the payment calculator.
Whatever your situation in Prince Edward Island
First home, renewal, refinance, self-employed or bruised credit: there's a 5-year variable path for your file, with the same 100+ lender network.
First-time buyers
5% down to your first Prince Edward Island home, with FHSA + RRSP HBP optimization.
Refinancing
Tap your Prince Edward Island home equity for renovations, debt consolidation, or investing.
Renewing
Don't auto-renew. Compare your bank's offer against the market.
Self-employed
Business-for-self files priced right, with A-lender, alt-A and private compared.
Bruised credit
B-lender and private paths now, with a mapped exit back to A-pricing.
New to Canada
Newcomer programs at the big banks; international credit accepted.
6 reasons to lock your Prince Edward Island 5-year variable rate through a broker
Why Prince Edward Island borrowers shop the whole market instead of signing their bank's first 5-year variable offer.
100+ lenders compete, not one
A Prince Edward Island bank shows you a single 5-year variable rate sheet. We put your file in front of 100+ lenders who bid for it, then pass on the volume pricing we hold as a brokerage.
Broker-channel pricing
The wholesale rate brokers access is typically 15-30 bps below a bank's posted rate. You can't get it by walking into a branch.
Built for the Prince Edward Island market
PEI has thin lender competition — Big-6 + monolines plus Provincial Credit Union dominate.
Your rate held 90-120 days
A pre-approval locks today's 5-year variable rate while you shop, and many lenders honour a drop if rates fall before you close.
No bureau pull to start
We can shop your Prince Edward Island 5-year variable rate and pre-qualify you without a hard credit check, so comparing costs you nothing.
Rate Beat offer (conditions apply)
Rate-beat offer: if you bring a written, current 5-year variable offer from one of the six largest banks for the same product, term and amount, we will try to beat it or pay you $500 (keep it, or we'll donate it to your favourite charity). Conditions apply; see mortgagesquad.ca/rate-beat-guarantee. Our advice is free, because the lender pays our commission on funding.
Why shop your Prince Edward Island 5-year variable rate with us
- 100+ lenders on one application: banks, monolines, and Prince Edward Island credit unions like RBC and Scotiabank.
- Broker-channel rates 15-30 bps below posted, only a brokerage can access.
- Prince Edward Island-specific guidance: land transfer tax, rebates, and local lender fit built in.
- FSRA-licensed advice in 15+ languages.
Prince Edward Island 5-year variable rates — FAQ
What is the best 5-year variable mortgage rate in Prince Edward Island right now?
Are Prince Edward Island 5-year variable rates different from the rest of Canada?
Is a 5-year variable a good idea in Prince Edward Island?
How does breaking a 5-year variable mortgage work?
What land transfer tax will I pay in Prince Edward Island?
Can I lock this Prince Edward Island rate before I buy?
Lock your best Prince Edward Island 5-year variable rate.
Free, no bureau pull to begin. We shop 100+ lenders and hold your rate while you shop for the home.