From the Bank of Canada's steady hand to a surge in housing starts and Ottawa's new financial crime-fighting agency — here are the five money stories every Canadian should have on their radar this morning. 1 Bank of Canada Rate Holds at 2.25% — Next Decision June 10 The Bank of Canada kept its overnight rate at 2.25% on April 29 and has signalled it intends to stay put for now. Governing Council is keeping a close eye on Middle East conflict spillover into energy prices, ongoing U.S. tariff uncertainty, and whether inflation — currently hovering just above the 2% target — becomes entrenched. Bond markets are currently pricing in roughly an 18% chance of a 25-basis-point cut by the July 15 announcement, making a move at the June 10 meeting unlikely. 💡 What it means for you: Variable-rate mortgage and HELOC holders can exhale — no surprise hikes on the horizon. But don't expect big rate relief either; the "lower-for-longer" window appears to be closing. 2 Mortgage...
As we welcome the new year, it’s crucial to stay informed about the various tax deductions and credits available to Canadians. These financial incentives can significantly reduce your tax bill and potentially result in a substantial refund. Here’s a brief overview of six key tax breaks offered by the Canada Revenue Agency (CRA) for the 2023 tax year:
Dividend Tax Credit: Investors can benefit from this credit, which applies to dividends received from stocks like Fortis Inc. The credit is calculated based on a “grossed up” amount of the dividends, leading to a reduced tax bill.
RRSP Contributions: Contributions to a Registered Retirement Savings Plan (RRSP) are deductible, lowering your taxable income and, consequently, your tax bill.
Work-from-Home Deductions: Self-employed individuals can claim their entire workspace, while conventionally employed workers can deduct work-related expenses.
Disability Tax Credit: This credit provides relief for costs incurred due to a severe disability, offering a significant deduction for both oneself and eligible dependents.
Tuition Fees: Educational expenses, including tuition and textbooks, are eligible for a tax credit, easing the financial burden of higher education.
GST/HST Tax Credit: A direct payment is made to individuals with incomes below a certain threshold, helping to offset the Goods and Services Tax/Harmonized Sales Tax paid throughout the year.
By taking advantage of these tax breaks, Canadians can effectively manage their finances and save money as they navigate the complexities of the tax system. Remember, every deduction counts when it comes to maximizing your savings.
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