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Inflation Drops to 2.2% — But What It Means for Ontario Homeowners and Borrowers in 2025

Canada finally got some relief in October: inflation eased to 2.2%, driven by falling gas and grocery prices. But while headlines focus on the national picture, the real question for Ontario homeowners is simple:
November 17, 2025 by
Inflation Drops to 2.2% — But What It Means for Ontario Homeowners and Borrowers in 2025
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Does lower inflation mean cheaper mortgage rates — or is the worst still ahead?

At Lendworth, we track this data closely because it directly affects home equity loans, second mortgages, private mortgage rates, and debt-consolidation strategies for borrowers across Ontario. Here’s what the latest numbers really mean for your wallet.

Gas & Grocery Prices Dropped — Giving Inflation the Push It Needed

Statistics Canada reported that:

  • Gas prices fell faster than expected, thanks to the switch to cheaper winter fuel blends.

  • Grocery prices dropped 0.6%, the biggest monthly decline in more than five years.

  • Annual food inflation cooled as lower costs for vegetables and prepared foods offset rising chicken prices.

This pullback helped drive overall inflation from 2.4% in September down to 2.2% in October.

A step in the right direction — but not the full story.

The Surprise Factor: Cell Phone Costs Jump 7.7%

While most categories eased, one thing spiked:

📱 Cellular services jumped 7.7% — the first increase since April 2023.

This unexpected bump kept inflation from dropping even further, and it’s part of why the Bank of Canada is being cautious about future rate cuts.

So… Are Better Mortgage Rates Coming?

Lower inflation is good news — but it doesn’t automatically trigger instant mortgage relief.

Here’s what borrowers across Ontario should expect:

1. Bank rates may stabilize, not crash

The BoC has signaled it’s near the end of its cutting cycle. That means:

  • Big variable-rate drops are unlikely in the short term

  • Fixed rates may slide slowly but won’t return to pandemic lows

2. Private lending becomes more attractive

With banks still tightening approvals — especially for:

  • self-employed borrowers

  • credit-challenged borrowers

  • homeowners with high debt loads

Private mortgage options like home equity loans, second mortgages, and HELOC alternatives become essential tools.

3. Your home equity works harder than your credit score

At Lendworth, approvals are based on equity, not income or credit — and with property values stabilizing in many Ontario markets, homeowners are in a strong position to borrow smarter.

What This Means for Ontario Homeowners Right Now

📌 Debt consolidation is trending

As inflation cools, many homeowners are using equity to eliminate high-interest credit cards and loans.

📌 Refinancing with bad credit is becoming easier

With more predictable rate movement, lenders are more open to structured solutions.

📌 Same-day home-equity approvals are surging

Borrowers denied by banks are turning to fast, flexible private options with 24-hour approvals.

Need to Restructure Debt or Tap Into Home Equity Before Winter?

If inflation has been eating away at your cash flow, you’re not alone — and you don’t need to wait for the banks to change course.

Lendworth offers:

  • Home equity loans

  • First & second mortgages

  • Debt consolidation loans

  • Private mortgage refinancing

  • HELOC alternatives

  • 24-hour approvals across Ontario

Fast, flexible, equity-based solutions — even with bad credit, past income issues, or recent bank declines.

Looking to leverage your home equity before rates shift again?

Apply in minutes at lendworth.ca or call 905-597-1225 for priority approval.

When Does Private Lending Make Sense? A Practical Guide for Ontario Homeowners
Private lending often gets labeled as “expensive,” but the reality is simple: you’re paying for speed, flexibility, and access—things traditional banks can’t offer.