Weekly Digest – 24 January 2025
Top Mortgage Rates in Canada Today
Canada’s mortgage rates are constantly changing, and finding the best rates is crucial for homeowners and buyers. The lowest national mortgage rates, both insured and uninsured, are updated daily to help consumers make informed decisions. Insured mortgages generally require a down payment of less than 20%, while uninsured mortgages are for those with larger down payments. Checking current rates regularly can ensure you secure a competitive rate, saving money over the life of the loan. Make sure to compare different options, as rates can vary depending on factors like the term, type, and the lender.
https://financialpost.com/real-estate/best-mortgage-rates-canada
Why Do Small-Business Owners and Self-Employed Individuals Struggle to Take Paternity Leave?
Entrepreneurs face unique challenges when it comes to taking parental leave. To qualify for parental leave benefits through Employment Insurance (EI), self-employed individuals must be paying EI premiums and meet specific requirements. If they pay themselves a salary and meet the minimum hours worked, they can claim standard EI benefits. However, many self-employed people may not contribute to EI, as they are less likely to face layoffs, or they may not pay themselves a traditional salary.
For those who don’t qualify for standard EI benefits, there is a special program for business owners, but it requires registration 12 months in advance. Additionally, EI benefits may not be sufficient for many entrepreneurs, as they might need to use the money for other business expenses, such as hiring help. There is a need for better support systems for self-employed parents to allow them to balance running a business and starting a family.
CPP Payment Growth Slows in 2025, Adding Pressure on Retirees
Canada’s Canada Plan (CPP) payments for 2025 have increased by only 2.6%, a significant drop from the 4.4% hike the previous year, due to cooling inflation. Starting this month, the maximum CPP payment for someone starting at age 65 will be $1,433, an increase of $68.40 from last year. While inflation has slowed, costs for essentials like groceries and gas remain significantly higher than pre-pandemic levels. Many retirees feel that the latest increase falls short of what they need to keep up with rising living expenses.
Although inflation rates are lower, key items that seniors rely on, such as groceries, have seen higher price hikes, outpacing the general inflation rate. Advocacy groups suggest reforming the way CPP increases are calculated, to better reflect the actual expenses seniors face. Some retirees, faced with these rising costs, are cutting back on discretionary spending and looking for ways to save on essentials. Financial experts recommend retirees develop both short- and long-term financial strategies. In the short term, dipping into savings may be necessary, but it’s crucial to monitor spending and avoid depleting long-term investments.
Get in touch
Contact us if you have any questions or want to discuss the next steps for your business.