Skip to main content

Featured

What to Do with Your Tax Refund: 5 Smart Moves for Canadians

  Tax Season · Personal Finance By MoneySavings.ca Editorial Team • May 7, 2026 • 7 min read Tax season is wrapping up across Canada, and for millions of Canadians, that means a refund cheque — or a direct deposit — is on its way. The average Canadian tax refund hovers around $1,800. That's real money. The question is: what's the smartest thing you can do with it? It's tempting to treat a tax refund like "found money" and splurge. But here's the truth — that refund was your money all along. The government was just holding it for you, interest-free. So before it quietly disappears into day-to-day spending, let's look at five moves that will make it work harder for you. $1,800 The average Canadian tax refund — enough to make a meaningful dent in debt, pad an emergency fund, or kick-start your TFSA for the year. 1 Pay Down High-Interest Debt First If you're carrying a balance on a credit card, this should be your very first call. Most Canadian credit car...
Post a Comment
Read more

article

Labels

5 Things Every Canadian Should Know About Their Money Today



Published: May 6, 2026 · 3-minute read · moneysavings.ca/canadian-money-brief

Here's what's moving the needle on Canadian household finances today — quick, clear, and actionable.

1. Bank of Canada Rate Decision Is on the Radar

The Bank of Canada's next rate announcement is approaching, and economists are split on whether another cut is coming. After a series of reductions through late 2025, the overnight rate has been holding in the low-to-mid 2% range. What it means for you: If you're sitting on a variable-rate mortgage or a HELOC, keep a close eye on the announcement date. A cut could shave real dollars off your monthly payment — but don't count on it just yet. Review your lender's prime rate clause so you're not caught off guard either way.

2. Grocery Prices Are Still Outpacing Wage Growth

Despite a broader cooling of inflation, the grocery aisle continues to sting. Staples like eggs, dairy, and fresh produce remain elevated compared to pre-2023 levels, and Canada's major grocers are reporting continued pressure on supply chains. What you can do: Price-matching at Walmart, No Frills, and Food Basics is still one of the fastest ways to cut your grocery bill without changing what you eat. Apps like Flipp and Checkout 51 remain free, fast tools for Canadians looking to stretch every dollar at the checkout.

3. TFSA Contribution Room — Do You Know Yours?

Many Canadians leave TFSA contribution room untouched — especially after years of life changes like withdrawals, relocations, or simply losing track. As of January 1, 2026, the cumulative TFSA limit for Canadians who have been eligible since 2009 is now $102,000 (pending any 2026 indexation adjustment). Action item: Log into your CRA My Account today to confirm your exact available room. Even parking a few hundred dollars in a high-interest savings ETF (like CASH or PSA) inside your TFSA is better than letting that room sit idle.

4. Mortgage Renewals: The Quiet Crunch Continues

A significant wave of Canadian mortgages originated in 2021 — at historically low rates — are coming up for renewal in 2025–2026. If yours is one of them, the rate shock can be significant even with the recent BoC cuts. What to do now: Don't wait for your lender's renewal letter. Start shopping 120 days out — most lenders will honour a rate hold, and mortgage brokers can access deals your bank won't advertise. Switching lenders at renewal typically has no penalty, and even a 0.15% difference on a $400,000 mortgage adds up to thousands over a 5-year term.

5. GST/HST Credit Payment — Check Your Account

The Canada Revenue Agency issues GST/HST credit payments quarterly, and the July 2026 payment will be based on your 2025 tax return — which means filing on time (if you haven't yet) directly affects what you receive. Low- and modest-income Canadians can receive up to $519/year for individuals and $680/year for couples, with additional amounts per child. Reminder: You don't need to apply separately — filing your return is all it takes. If you missed filing for 2025, it's not too late. The CRA allows late returns, and retroactive payments can be issued.

Stay informed. Stay ahead. Visit moneysavings.ca for daily Canadian personal finance updates.

Labels:

Comments

Post a Comment