Canadians prioritize lifestyle over retirement
With cost of living crisis still capsizing the personal finance startegies of many Canadians, nearly half (46%) of non-retired citizens prioritize spending on their current lifestyle in place of saving for retirement. The IG Wealth Management annual retirement survey mainly attributes this to having to paying off debts (38%) or preferring to enjoy their life now (18%). "Rising costs and mounting debt repayment challenges often undermine Canadians' ability to save for retirement," Christine Van Cauwenberghe, IG Wealth Management’s head of financial planning, said in a statement. Respondents have aspirations for their retirement years, it's simply that the demands of the present – debt and other financial pressures – are taking precedence.
With cost of living crisis still capsizing the personal finance startegies of many Canadians, nearly half (46%) of non-retired citizens prioritize spending on their current lifestyle in place of saving for retirement. The IG Wealth Management annual retirement survey mainly attributes this to having to paying off debts (38%) or preferring to enjoy their life now (18%). "Rising costs and mounting debt repayment challenges often undermine Canadians' ability to save for retirement," Christine Van Cauwenberghe, IG Wealth Management’s head of financial planning, said in a statement. Respondents have aspirations for their retirement years, it's simply that the demands of the present – debt and other financial pressures – are taking precedence.
What is a tariff?
During his 2024 presidential campaign trail, then nominee Donald Trump was threatening to impose sweeping 25% tariffs on all goods imported from both Mexico and Canada. According to Trump, this was a necessary step in order to establish manufacturing and production independence within the USA. His aim was to make America a dynamic and self-sufficient powerhouse, once again. After officially assuming the position of the 47th President of the United States, Trump is sticking to his guns and planning to roll out 25% tariffs on all goods coming in from Canada and Mexico — political action that will have broad economic ramifications on North American trade and policy. Many Canadian politicians, business leaders and investing professionals have sounded the alarm of how these acerbic tariffs will put the Canadian economy into a precarious position — and also hurt the US economcy, given the interdependence of the two nations on both imports and exports. With all this talk of tariffs and their potential drawbacks, it is important to understand what a tariff is, why this type of surtax is used, how tariffs can ultimately benefit or act as a detriment to Canada’s economy, and what it all means for the average Canadian consumer, investor or business owner.
During his 2024 presidential campaign trail, then nominee Donald Trump was threatening to impose sweeping 25% tariffs on all goods imported from both Mexico and Canada. According to Trump, this was a necessary step in order to establish manufacturing and production independence within the USA. His aim was to make America a dynamic and self-sufficient powerhouse, once again. After officially assuming the position of the 47th President of the United States, Trump is sticking to his guns and planning to roll out 25% tariffs on all goods coming in from Canada and Mexico — political action that will have broad economic ramifications on North American trade and policy. Many Canadian politicians, business leaders and investing professionals have sounded the alarm of how these acerbic tariffs will put the Canadian economy into a precarious position — and also hurt the US economcy, given the interdependence of the two nations on both imports and exports. With all this talk of tariffs and their potential drawbacks, it is important to understand what a tariff is, why this type of surtax is used, how tariffs can ultimately benefit or act as a detriment to Canada’s economy, and what it all means for the average Canadian consumer, investor or business owner.
What do you prefer: Canadian or US healthcare?
Standing strong on his vision of Canada becoming the 51st of the USA, President Donald Trump recently asserted that Canadians would have much better healthcare if the country were to cede independence to its southern neighbour. “I would love to see Canada be the 51st state. The Canadian citizens, if that happened, would get a very big tax cut — a tremendous tax cut — because they are very highly taxed,” he said. “They’d have much better health coverage. I think the people of Canada would like it.” While the two countries share the longest border in the world, there are various differences in the nations’ legislation and social programming, which is most evident in how citizens receive healthcare. Below, we break down how Canada’s universalized healthcare system differs from America’s privatized offering, and how that can impact the financial health of those seeking medical attention.
Standing strong on his vision of Canada becoming the 51st of the USA, President Donald Trump recently asserted that Canadians would have much better healthcare if the country were to cede independence to its southern neighbour. “I would love to see Canada be the 51st state. The Canadian citizens, if that happened, would get a very big tax cut — a tremendous tax cut — because they are very highly taxed,” he said. “They’d have much better health coverage. I think the people of Canada would like it.” While the two countries share the longest border in the world, there are various differences in the nations’ legislation and social programming, which is most evident in how citizens receive healthcare. Below, we break down how Canada’s universalized healthcare system differs from America’s privatized offering, and how that can impact the financial health of those seeking medical attention.
Canadian investors concerned about recession
Despite a positive outlook on the overall macroeconomic trends, many Canadian investors are concerned about the possibility of a recession in the next 12 months, according to the latest BMO investment survey. Additionally, with higher values on tax-free savings accounts (TFSA), many respondents reported seeking more financial advice. "It was a good year for many investors with the two main asset classes, stocks and bonds both performing well in 2024, likely helping to increase account values for many Canadians," Brent Joyce, BMO Private Counsel’s chief investment strategist and managing director, said in a statement. "While economic headwinds, including the prospect of tariffs may be a concern for Canadian households, we still see room for the major markets to continue making gains in 2025. For investors, it's important to remember, the Canadian stock market is not the Canadian economy, and it is often the case that markets climb a wall of worry." Almost half (48%) believe the economy will weaken over the next 12 months, while only 19% expect the economy to improve.
Despite a positive outlook on the overall macroeconomic trends, many Canadian investors are concerned about the possibility of a recession in the next 12 months, according to the latest BMO investment survey. Additionally, with higher values on tax-free savings accounts (TFSA), many respondents reported seeking more financial advice. "It was a good year for many investors with the two main asset classes, stocks and bonds both performing well in 2024, likely helping to increase account values for many Canadians," Brent Joyce, BMO Private Counsel’s chief investment strategist and managing director, said in a statement. "While economic headwinds, including the prospect of tariffs may be a concern for Canadian households, we still see room for the major markets to continue making gains in 2025. For investors, it's important to remember, the Canadian stock market is not the Canadian economy, and it is often the case that markets climb a wall of worry." Almost half (48%) believe the economy will weaken over the next 12 months, while only 19% expect the economy to improve.
Toronto man is owed $55K after evicting tenant
Narinder Singh and his wife are relieved after their four-year nightmare tenant experience has finally ended. The Brampton, Ontario man told Global News that his tenant, Deeqa Rafle, owes $55,177.85 in unpaid rent and utilities. Singh claims that Rafle did not pay her rent consistently for the four years she lived at the Singh’s 32nd-floor Toronto condo. “Squatters like her, they’re well aware of how to abuse the system, to what length they can abuse and they take full advantage of it,” Singh said in an interview. How did Rafle get away with it?
Narinder Singh and his wife are relieved after their four-year nightmare tenant experience has finally ended. The Brampton, Ontario man told Global News that his tenant, Deeqa Rafle, owes $55,177.85 in unpaid rent and utilities. Singh claims that Rafle did not pay her rent consistently for the four years she lived at the Singh’s 32nd-floor Toronto condo. “Squatters like her, they’re well aware of how to abuse the system, to what length they can abuse and they take full advantage of it,” Singh said in an interview. How did Rafle get away with it?
Rate drop winners and losers
Canadians face a new economic reality — one that is dominated by uncertainty, threats and the potential for higher living costs. Given the uncertainty and threats, the Bank of Canada (BoC) announced a rate drop of 0.25% on January 29, 2025. The BoC decision to reduce interest rates comes as inflation eases to 1.8% — well within the BoC's target range — while the Canadian economy continues to show signs of recovery after a turbulent few years. But as with any economic shift, there are winners and losers the latest Bank of Canada interest rate announcement.
Canadians face a new economic reality — one that is dominated by uncertainty, threats and the potential for higher living costs. Given the uncertainty and threats, the Bank of Canada (BoC) announced a rate drop of 0.25% on January 29, 2025. The BoC decision to reduce interest rates comes as inflation eases to 1.8% — well within the BoC's target range — while the Canadian economy continues to show signs of recovery after a turbulent few years. But as with any economic shift, there are winners and losers the latest Bank of Canada interest rate announcement.
What is the Bank of Canada interest rate?
As of January 2025, the Bank of Canada interest rate is 3.00%. This is the sixth, consecutive drop in the BoC's overnight rate — the target interest rate that influences prime rate used by lenders when providing mortgages, personal and auto loans as well as student loans and other debt products. The January 29 announcement marks the first interest rate announcement of 2025. The next interest rate announcement will be March 12, 2025. As the nation’s central bank, the Bank of Canada (BoC) is responsible for making sure our dollar maintains its value — and this is done by keeping inflation low and maintaining stable, economic growth. The BoC's decisions affect how we spend money, how and when we save, where we invest and how businesses grow and prosper. When it lowers its target rate, this prompts lenders, such as the Big 6 Banks or fintech firms, to drop their prime rate — the base rate used to calculate how much it will cost to borrow money. Dropping the target rate — also known as the overnight rate — usually means it's easier to borrow money and the loan will cost you less. This encourages more spending. On the flipside, raising the overnight rate often reduces spending from both businesses and consumers. When less money is spent, businesses earn less profit and, in theory, this cools price increases or prompts price reductions. A rise in the overnight rate makes it harder for borrowers to access funds, effectively costing more when they do get a loan. This is all part of the Bank of Canada's monetary policy. Eventually, the rise and fall of interest rates should help consumers, businesses and the economy reach a state of equilibrium — where consumers and businesses are spending at a rate that keeps the economy moving forward while maintaining a lower cost of living. Read More: Bank of Canada dropped its overnight rate: How does this impact variable interest rates? Read More: Who wins and loses when the Bank of Canada lowers its overnight rate? Read More: BoC dropped the overnight rate by 0.5%—making it a golden time for first-time homebuyers
As of January 2025, the Bank of Canada interest rate is 3.00%. This is the sixth, consecutive drop in the BoC's overnight rate — the target interest rate that influences prime rate used by lenders when providing mortgages, personal and auto loans as well as student loans and other debt products. The January 29 announcement marks the first interest rate announcement of 2025. The next interest rate announcement will be March 12, 2025. As the nation’s central bank, the Bank of Canada (BoC) is responsible for making sure our dollar maintains its value — and this is done by keeping inflation low and maintaining stable, economic growth. The BoC's decisions affect how we spend money, how and when we save, where we invest and how businesses grow and prosper. When it lowers its target rate, this prompts lenders, such as the Big 6 Banks or fintech firms, to drop their prime rate — the base rate used to calculate how much it will cost to borrow money. Dropping the target rate — also known as the overnight rate — usually means it's easier to borrow money and the loan will cost you less. This encourages more spending. On the flipside, raising the overnight rate often reduces spending from both businesses and consumers. When less money is spent, businesses earn less profit and, in theory, this cools price increases or prompts price reductions. A rise in the overnight rate makes it harder for borrowers to access funds, effectively costing more when they do get a loan. This is all part of the Bank of Canada's monetary policy. Eventually, the rise and fall of interest rates should help consumers, businesses and the economy reach a state of equilibrium — where consumers and businesses are spending at a rate that keeps the economy moving forward while maintaining a lower cost of living. Read More: Bank of Canada dropped its overnight rate: How does this impact variable interest rates? Read More: Who wins and loses when the Bank of Canada lowers its overnight rate? Read More: BoC dropped the overnight rate by 0.5%—making it a golden time for first-time homebuyers
Prime rate in Canada
Canada’s prime rate — the interest rate that major banks charge their best customers — will drop to 5.20% prompted by the Bank of Canada's sixth consecutive rate drop of its overnight rate, this time by 25 basis points (the equivalent of 0.25%). The 25 point drop, after two more aggressive 50 point drops since October, appears to be prompted by continued concerns of a sluggish Canadian economy. In July, when the Bank of Canada (BoC) announced the second rate drop of its overnight rate, BoC Governor, Tiff Macklem highlighted the growing confidence that inflationary pressures were now under control. “We are increasingly confident that the ingredients to bring inflation back to target are in place," explained Macklem in the July 24, 2024 policy announcement. In October, the consumer price index inflation had mellowed to 2.0%, but bank economists felt more incentive was required to generate economic activity. The December rate announcement, in which the BoC dropped interest rates by 50 basis points, came with warnings that, after significant drops since July, the reductions will begin to ease going into 2025. The January 29 announcement reflects that easing. “With the policy rate now substantially lower, we anticipate a more gradual approach to monetary policy if the economy evolves broadly as expected,” Macklem said at the December press conference. As of January 29, 2025, the current bank-to-bank lending rate is now 3.00%. This drop in the BoC's overnight rate will eventually prompt a reduction in the prime rate lenders use to establish borrowing costs on mortgages, auto loans and other debt products.
Canada’s prime rate — the interest rate that major banks charge their best customers — will drop to 5.20% prompted by the Bank of Canada's sixth consecutive rate drop of its overnight rate, this time by 25 basis points (the equivalent of 0.25%). The 25 point drop, after two more aggressive 50 point drops since October, appears to be prompted by continued concerns of a sluggish Canadian economy. In July, when the Bank of Canada (BoC) announced the second rate drop of its overnight rate, BoC Governor, Tiff Macklem highlighted the growing confidence that inflationary pressures were now under control. “We are increasingly confident that the ingredients to bring inflation back to target are in place," explained Macklem in the July 24, 2024 policy announcement. In October, the consumer price index inflation had mellowed to 2.0%, but bank economists felt more incentive was required to generate economic activity. The December rate announcement, in which the BoC dropped interest rates by 50 basis points, came with warnings that, after significant drops since July, the reductions will begin to ease going into 2025. The January 29 announcement reflects that easing. “With the policy rate now substantially lower, we anticipate a more gradual approach to monetary policy if the economy evolves broadly as expected,” Macklem said at the December press conference. As of January 29, 2025, the current bank-to-bank lending rate is now 3.00%. This drop in the BoC's overnight rate will eventually prompt a reduction in the prime rate lenders use to establish borrowing costs on mortgages, auto loans and other debt products.
7 powerful ways the BoC rate cut will help you
The Bank of Canada (BoC) announced the first rate drop of 2025 — with a 25 basis point rate cut to its overnight rate. The rate cut of 0.25% was announced on January 29, 2025, following a 50 basis point cut in December 2024. The BoC's target rate now stands at 3.00% — pushing the bank prime rate to 5.20%. This latest rate reduction reflects the ongoing economic uncertainty due, in part, to global unrest, the threat of trade wars and a sluggish domestic economy. For most Canadians, the real question is how this latest rate cut will affect their everyday living costs and those saving for a large purchase, such as buying a home.
The Bank of Canada (BoC) announced the first rate drop of 2025 — with a 25 basis point rate cut to its overnight rate. The rate cut of 0.25% was announced on January 29, 2025, following a 50 basis point cut in December 2024. The BoC's target rate now stands at 3.00% — pushing the bank prime rate to 5.20%. This latest rate reduction reflects the ongoing economic uncertainty due, in part, to global unrest, the threat of trade wars and a sluggish domestic economy. For most Canadians, the real question is how this latest rate cut will affect their everyday living costs and those saving for a large purchase, such as buying a home.
CEOs brace for trade wars and innovation in 2025
A few weeks into 2025 and the global economy stands at a precarious crossroads. Unpredictable US policy, escalating trade wars combined with fears of a looming recession, as well as the relentless pace of technological change means that many corporate CEOs are in for a year of anxiety. Insights from The Conference Board’s latest survey of over 1,700 executives — including more than 500 CEOs — paint a sobering picture of uncertainty and urgency, as corporate leaders prepare to navigate what many believe could be a make-or-break year for global markets.
A few weeks into 2025 and the global economy stands at a precarious crossroads. Unpredictable US policy, escalating trade wars combined with fears of a looming recession, as well as the relentless pace of technological change means that many corporate CEOs are in for a year of anxiety. Insights from The Conference Board’s latest survey of over 1,700 executives — including more than 500 CEOs — paint a sobering picture of uncertainty and urgency, as corporate leaders prepare to navigate what many believe could be a make-or-break year for global markets.
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