The Lending Services Price Index (LSPI) is not an index of loan rates paid by consumers and businesses but represents the change in the price of service. Prices represent the difference between annual percentage rates for existing loan products and averages of yields on financial market instruments. The variables used to calculate the prices are weighted annual percentage rates, outstanding balances by product for lending services, and market rates.
Lending services include funds issued for personal loans, lines of credit, mortgage loans, business loans and leases. This index provides better estimates of the real output, productivity and price change of financial services in Canada.
Products
The article “Methodology for Lending Services Price Index (LSPI)” describes the methodological details for the LSPI. It includes information on the purpose of the index, data sources, index estimation and aggregation methods.