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The Fed Just Hiked Rates. Here's What It Means for Your Canadian Mortgage.

  The U.S. Federal Reserve raised its benchmark rate 25 basis points yesterday — the first hike in three years. The Bank of Canada hasn't moved. That gap is now the biggest story in Canadian personal finance. MoneySavings.ca  |  September 17, 2026  |  Canadian Money Brief Yesterday afternoon, the Federal Open Market Committee voted 12-0 to raise the U.S. federal funds rate by a quarter point, pushing it to a target range of 3.75%–4.00%. It's the Fed's first rate hike since July 2023, and Chair Kevin Warsh made clear it almost certainly won't be the last. The Bank of Canada, by contrast, has held its overnight rate at 2.25% through seven straight meetings. It doesn't decide again until October 28. For Canadians with a mortgage, a renewal coming up, or a home equity line of credit, this matters more than it might look at first glance. 3.75–4.00% New U.S. Fed Rate 2.25% Bank of Canada Rate 1.625% Rate Gap (vs. 1.375% yesterday) ~71.5¢ Loonie (post-hike low) What th...
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How to make your RRIF last longer and avoid tax traps

 

If you are a senior who has a registered retirement income fund (RRIF), you may be worried about outliving your savings or paying too much tax on your withdrawals. Fortunately, there are some strategies you can use to make your RRIF more efficient and flexible.

A RRIF is a tax-deferred account that you must convert your RRSP into by the end of the year you turn 71. You have to withdraw a minimum amount from your RRIF every year, based on your age or your spouse’s age. The minimum amount increases as you get older, and it is fully taxable as income.

One way to reduce your tax bill and preserve your RRIF is to withdraw less than the minimum amount. You can do this by electing to use your younger spouse’s age to calculate the minimum amount, which will lower the percentage you have to withdraw. You can also split up to 50% of your RRIF income with your spouse if they are in a lower tax bracket.

Another way to make your RRIF last longer is to invest it wisely. You can choose from a variety of investments, such as stocks, bonds, mutual funds, ETFs, and GICs, to suit your risk tolerance and income needs. You can also diversify your portfolio across different asset classes, sectors, and geographies to reduce volatility and enhance returns.

A third way to optimize your RRIF is to plan ahead for your estate. You can name your spouse as the beneficiary of your RRIF, which will allow them to continue receiving the income or transfer it to their own RRIF tax-free. You can also name your children or grandchildren as beneficiaries, but they will have to pay tax on the fair market value of the RRIF as a lump sum. Alternatively, you can donate your RRIF to a charity of your choice, which will generate a tax credit for your estate.

By following these tips, you can make your RRIF more flexible, tax-efficient, and long-lasting. You can also consult a financial planner or a tax professional to help you tailor your RRIF to your specific situation and goals.

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