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Understanding Your TFSA Contribution Room in 2026

A Tax‑Free Savings Account (TFSA) is one of Canada’s most flexible and powerful savings tools, but figuring out your exact contribution room can feel like solving a puzzle. A clear breakdown makes it much easier. How TFSA Contribution Room Works Your available room is made up of three parts: Annual TFSA limit for the current year Unused contribution room from previous years Withdrawals from previous years (added back the following January) For 2026, the annual TFSA limit is $7,000 . Step‑by‑Step: How to Calculate Your Room Use this simple formula: [ \text{TFSA Room} = \text{Unused Room from Prior Years} + \text{Current Year Limit} + \text{Withdrawals from Last Year} ] A quick example: Unused room from past years: $18,000 2026 limit: $7,000 Withdrawals made in 2025: $4,000 [ \text{Total Room} = 18,000 + 7,000 + 4,000 = 29,000 ] That means you could contribute $29,000 in 2026 without penalty. A Few Helpful Notes Over‑contributions lead to penalties, so it’s worth...
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Bank of Canada Poised for Another Interest Rate Cut

 

The Bank of Canada (BoC) is widely expected to announce another interest rate cut today, with forecasters leaning towards a half-percentage point reduction. This move would bring the BoC's key rate down to 3.25%, marking the fifth consecutive rate cut since June.

The decision follows the November labour force survey, which showed the unemployment rate rising to 6.8%. The central bank had previously lowered its benchmark interest rate by half a percentage point in October in response to inflation returning to its two percent target.

Governor Tiff Macklem has emphasized that the decision will be data-dependent, and the recent economic indicators have solidified expectations for another significant cut.

The BoC's efforts to manage inflation and support economic growth have been closely watched by market analysts and economists, who are keen to see how these measures will impact the Canadian economy moving forward.




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