How to manage your tax withholding in retirement + MORE Jun 18th

Three years have now passed since interest rates took off in 2022, and though the Bank of Canada (BoC) has started backing down that ladder, holders of five-year fixed mortgages continue to face significantly higher rates and payments as their home loans come up for renewal. Even those currently in variable-rate mortgages may find their lenders insisting on higher monthly or biweekly payments henceforward.

For those in that position, as well as those whose mortgages expire in the next 12 months, it’s best to go into the renewal process armed with knowledge of the kind of terms you’ll face and your options. Knowing in advance what you’re in for can take some of the sting out of “rate shock.” Depending on what your current lender and others have to offer, it may even make sense to renew before your old mortgage expires.

Calculating your mortgage renewal

Use the MoneySense Mortgage Renewal Calculator to get a sense of what you’ll be paying once you renew. This tool allows you to play around with variables, such as the location, amount borrowed, mortgage term, amortization and payment frequency to help find loan terms that work for you…

Savings comparison tool

Find the best and most up-to-date savings rates in Canada using the comparison tool below. Plus, use the filters to assess your estimated return based on the size of your balance.

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Best high-interest savings account rates in Canada

Generally, savings accounts offer very low interest rates. So, if you want to earn on your deposits (rather than simply using your account as a temporary “holding tank” or directing to longer-term saving and investing vehicles), a savings account with a high interest rate is a no-brainer…

Every spring, I tend to have a lot of conversations with retirees who are disappointed that they owe tax on their tax return, that the Canada Revenue Agency (CRA) has asked them to pay income tax in installments, or that their Old Age Security (OAS) pension has been clawed back.

If it makes you feel any better, it is not just you—lots of retirees are in the same situation. Why does this happen, and what can you do about it?

Income tax on retirement benefits

When you are an employee, your employer must withhold payroll tax at source. If you have no other income, deductions or credits, in theory, you should have no tax owing nor a tax refund when you file your tax return in April.

In practice, most people have tax deductions that reduce their taxable income, or tax credits that reduce their tax owing. Both lead to tax refunds, and this is why most Canadian taxpayers get money back when filing tax returns during their working years.

In retirement, the situation is different…

No surprise, but raising kids is expensive. Statistics Canada calculates that each child costs a two-parent household an average of $17,235 a year.

To help parents make ends meet, the federal government offers the Canada Child Benefit (CCB). If you have children under 18 and file a tax return, you are automatically enrolled. Tax-free monthly payments are administered by the Canada Revenue Agency (CRA).

Provincial governments provide additional financial support to low- to moderate-income families. But the benefit amounts, income thresholds, eligibility and payment dates can vary slightly from province to province and territory to territory. Provincial child benefits, except for Quebec, are administered by the CRA on behalf of the provinces and territories. The government of Quebec manages its Family Allowance program independently. 

All provincial child benefit programs run from July to June of the following calendar year. 

Also read

Earning, saving and spending in Canada: A guide for new immigrants

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What are the provincial child payment amounts for June 2025?

The child benefit amount is based on your adjusted family net income, which is your family net income (calculated by adding your net income and the net income of your spouse or common-law partner) minus any universal child care benefit (UCCB) and registered disability savings plan (RDSP) income received…