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Canada’s Housing Market Faces Headwinds Despite BoC Moves

The Bank of Canada’s 25-basis-point cut in September was at best ignored by the national market, with sales falling 1.7 per cent compared to the month before. The Bank of Canada’s recent interest rate adjustments have done little to revive the country’s housing market, which continues to struggle under the weight of broader economic concerns. In September, the central bank cut its policy rate by 25 basis points, bringing it to 2.5%. Yet, instead of sparking renewed activity, national home sales actually fell by 1.7% compared to the previous month.  Economists note that the housing market is no longer moving in lockstep with monetary policy, but is instead being shaped by regional affordability challenges, consumer psychology, and—most critically—job security fears. Uncertainty surrounding U.S. trade policy has also cast a shadow over Canada’s economic outlook. Businesses remain hesitant to invest, and households are wary of making major financial commitments such as home purchas...
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Navigating Personal Finance in 2025: Key Changes to Capital Gains and Tax Brackets


As we step into 2025, several significant changes are set to impact personal finance, particularly in the areas of capital gains and tax brackets. These adjustments are designed to adapt to economic conditions and provide better financial planning opportunities for individuals.

Capital Gains Tax Adjustments

One of the most notable changes is the adjustment to capital gains tax. Starting in 2025, a higher tax rate will be applied to capital gains exceeding $250,000. This means that individuals selling assets with substantial gains may need to reconsider their timing and strategy to minimize tax liabilities. For example, spreading the sale of assets over multiple years could be a more tax-efficient approach.

Changes to Tax Brackets

Inflation adjustments are also on the horizon for tax brackets. To prevent inflation from pushing taxpayers into higher brackets, the income thresholds for each tax bracket will increase by 2.7%. For instance, the federal tax rate for earnings up to $57,375 will remain at 15%, but the brackets above this will see slight adjustments. This change aims to ensure that taxpayers are not unfairly penalized by inflation.

Basic Personal Amount

The basic personal amount, which is the portion of income not subject to federal tax, will also see an increase. For 2025, this amount ranges from $14,538 to $16,129, depending on overall income. This adjustment provides some relief, especially for those with lower incomes.

Canada Pension Plan (CPP) Contributions

For Canadian workers, there will be an increase in CPP contributions. This is part of a multi-year pension revamp aimed at enhancing benefits for retirees. The earnings ceilings for CPP contributions will also rise, with the first-tier ceiling increasing to $71,300 and the second-tier ceiling to $81,200.

These changes underscore the importance of staying informed and possibly consulting with a financial advisor to navigate the evolving financial landscape. By understanding and planning for these adjustments, individuals can better manage their finances and make informed decisions.




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