Skip to main content

Featured

BoC Decision Day: What a Hold at 2.25% Means for Your Mortgage

  Published September 2, 2026 Tomorrow's date has been sitting at the bottom of every Canadian Money Brief for weeks, and it's finally here. The Bank of Canada announces its overnight rate decision on Wednesday, September 2 at 9:45 a.m. ET, with Governor Tiff Macklem holding a press conference at 10:30. Every economist polled by Reuters — all 35 of them — expects the same outcome: a hold at 2.25%, the eighth straight meeting without a move. That's the headline. The more useful question for your wallet is what a "boring" hold actually does — and doesn't do — to your mortgage, and why two of the Big Six banks think the boring streak is about to end. Why a hold is the almost-certain call The Bank has a genuinely awkward setup heading into this meeting. On one side, the economy just posted its best quarter in years: GDP grew at a 3.3% annualized pace in the second quarter, well ahead of the Bank's own 2.5% forecast, and July's jobs report added a blowout ...
Post a Comment
Read more

article

Labels

New CPP rules mean higher deductions and benefits for Canadians



Starting Monday, Canadians will see a change in their paycheques as the Canada Pension Plan (CPP) introduces a new earnings ceiling for higher-income earners.

The new ceiling, which applies to anyone earning more than $68,500 in 2024, is part of a broader pension revamp that began in 2019. The goal is to provide more financial support for Canadians after they retire, by increasing both the contributions and the benefits of the CPP.

Under the new rules, workers and employers will pay an additional four per cent on the amount they earn between $68,500 and $73,200. This means a maximum of $188 more in payroll deductions for 2024. Self-employed people will pay both portions, or eight per cent.

The trade-off is that Canadians will eventually receive higher payouts once they start collecting their pensions. The enhanced CPP is designed to replace one-third of a person’s eligible income, up from one-quarter under the old system.

The full effects of the CPP changes will take decades to materialize, so the youngest workers stand to gain the most. People retiring 40 years from now will see their income go up by more than 50 per cent compared to the current pension beneficiaries.

The CPP changes do not affect the eligibility criteria for retirement pension, post-retirement benefits, disability pension and survivor’s pension.


-

Labels:

Comments

Post a Comment