At the heart of this increase? Surging vehicle prices. Both new and used passenger vehicles saw significant price hikes, with used cars jumping for the first time in 18 months due to tighter inventory. New vehicle inflation came in at 5.2%, and apparel costs also rose 2% year-over-year, driven by tariff uncertainty.
While gas prices remained flat month-over-month, year-over-year comparisons painted a different story, nudging overall inflation higher. Canadians also faced higher prices for furniture and other durable goods.
However, not all costs rose. Food inflation slowed to 2.8% in June (down from 3.3% in May), thanks to long-awaited price relief on fresh fruits and vegetables. Shelter costs also cooled slightly, offering some relief for households already stretched by elevated borrowing costs.
💼 What This Means for Borrowers
With inflation showing no signs of easing, analysts now believe the Bank of Canada is unlikely to cut interest rates in the near term. The stronger-than-expected June inflation report, combined with solid employment data, makes a rate cut this month or even in September less likely.
For those seeking mortgage financing, that means today’s lending rates — already hovering around 9.99%–12% for private lending — could remain sticky for the coming months. Lendworth continues to offer equity-based financing for borrowers in Ontario who need flexibility amid rising consumer prices and tighter credit conditions.
💰 What This Means for Investors
From an investment perspective, persistent inflation supports a higher-yield environment — good news for investors in the Lendworth Mortgage Investment Corporation (LMIC). With our portfolio weighted toward short-term, high-interest residential mortgages, we continue to deliver strong returns even as the broader rate environment remains elevated.
Inflation-linked uncertainty, both in Canada and the U.S. (where consumer prices jumped 2.7% year-over-year in June), reinforces the value of asset-backed, yield-generating alternatives like mortgage investments.
Bottom Line:
Inflation isn’t cooling off just yet — and neither are mortgage rates. Whether you're a borrower looking to tap into your home’s equity or an investor seeking stable, above-market returns, Lendworth offers solutions built for today’s economic climate.
📞 Contact us today to learn how Lendworth can help you navigate the current rate environment — whether you're refinancing, funding a project, or seeking solid, income-generating investments.