Borrowing costs in Canada are expected to drop to their lowest level in two years, according to an analysis from Better Dwelling.
Borrowing rates fell to 3.54% this month, down from 4.84%. This represents an almost 12% decline from 2019, the biggest recorded in the last seven years, said Daniel Wong, contributing editor at Better Dwelling.
"The cost of household borrowing isn't at all-time lows, but is dropping very fast. This is intended to be a boost to consumers, which can help to propel the economy," he said in a think piece.
It is expected that borrowing rates will hit levels recorded in 2017.
However, Wong said the rate at which borrowing costs are falling could signal an urgent need for economic stimulus.
"Generally, falling rates are a sign of economic weakness. Rates falling very quickly is usually a sign of strongly anticipated weakness," he said.