Page 38 - Sports Energy News, Cornwall, Issue No 147

38 Issue #147 April 2025 www.sportsenergynews.com

Neighbourly Advice From Our Local Professionals
Neighbourly
om Our
Advice Fr
ofessionals
Local Pr
By Brian Johnston trimming fixed rates, discounts on variable In the past week alone, some banks and
Mortgage Specialist rates are shrinking. If you’re in the market mono-lines have cut 3 and 5-year fixed
for a mortgage this spring, you’ve probably mortgage rates, by 10 to 20 basis points.
FIXED MORTGAGE RATES KEEP noticed fixed rates are continuing to trend The spring market starts now, what’s
FALLING, BUT VARIABLE-RATE
lower. That’s thanks in large part to falling typically the busiest—and most
PRICING IS ON THE RISE bond yields, which drive fixed-rate pricing, competitive—season in the mortgage
Spring mortgage season is bringing better and a fresh wave of spring competition cycle. With many high-ratio fixed rates now
fixed-rate deals, but not all borrowers
among lenders.
are seeing relief. While lenders continue Continued on page 39

By Michael VanderMeer put money in this account you can do you have to return it over a 15 year
Real Estate Agent save money on your taxes, and like a period like you do when using RRSP’s
tax free savings account, any money for a down payment.
HOME BUYING INCENTIVE earned in this account is tax free. You But wait - there’s more - as long as
Did you know that there is a FIRST are allowed to contribute up to $8,000 you have not owned a home in the
HOME SAVINGS ACCOUNT a year, up to a maximum of $40,000. past four years, you can qualify as a
(FHSA) that is kind of a hybrid The great advantage of this type of first time buyer and open one of these
between an RRSP account and a tax account over an RRSP account is that accounts as follows - “You did not live
free savings account? - let me explain. when you use your money for a down in a qualifying home (or what would
Like an RRSP account, when you payment you are not taxed on it, nor Continued on page 39

overlook pension income splitting. like a good idea, but large mandatory
Max Ming P.Eng. CFP ®
Financial Planner You can allocate up to 50% of RRIF withdrawals at age 72 can push
eligible pension income (like RRIF you into a higher tax bracket. Consider
TAX SEASON REMINDER: withdrawals or company pensions) withdrawing smaller amounts earlier
HOW TO REDUCE TAXES IN
RETIREMENT to a lower-income spouse, potentially to smooth out taxable income and
avoid costly OAS claw backs.
reducing your overall tax bill.
With tax season in full swing, many
retirees (and soon-to-be retirees), are Spousal RRSPs: If one spouse is still Maximize Your TFSA: Unlike RRSPs,
working and the other is retired or TFSA withdrawals are tax-free and
wondering—am I paying more tax earning less, a Spousal RRSP can shift won’t impact government benefits
than I need to? Smart tax planning
isn’t just about filing this year’s return; it’s about setting future withdrawals into the lower- like OAS. If you’re withdrawing
income spouse’s hands—lowering from investments to cover retirement
yourself up for lower taxes in the years ahead. Here are taxes both now and in retirement. expenses, prioritizing TFSA
some key strategies to consider:
RRSP/RRIF Withdrawal Planning:
Income Splitting: If you’re married or common-law, don’t
Continued on page 39
Delaying RRSP withdrawals may seem Continued on page 39
With our 2025 “Just Homes Listing Program”, Homeowners will never pay more than

3 3/4%+ HST commission which includes full weekly local newspaper

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Serving the Community since 1959
The savings may not stop here. When we sell your home directly to a buyer
check us out on the web at: without another real estate brokerage involved in the sale, we further reduce our
www.soldsmart.ca
sandy@homesnet.ca commission to only 2% + HST
“Not intented to solicit properties already listed for sale”