Effective Household Interest Rates

Since hitting a multi-year high earlier this year, borrowing rates have been trending lower.
The effective interest rate for households is a weighted-average index of interest paid, with both consumer and mortgage loans being weighted in the average. Few households actually pay the posted 5-year fixed rate, and analyzing these numbers reveals interest actually paid.

The effective interest rate reached 3.7% on September 6, down 0.8% from the month before, and 7.96% from the peak reached earlier this year. The rapid decline means rates are the lowest they’ve been since June 2018.

Reference: https://credit.bankofcanada.ca/financialindicators/eir