After a brief hiatus, the federal government is set to reintroduce incentives for electric vehicle (EV) buyers, aiming to accelerate Canada’s transition to greener transportation and ease the upfront cost burden for consumers. The announcement, made by Minister of Transport Lisa Joly earlier this month, marks a significant policy shift intended to support environmental goals while providing tangible financial relief to Canadians.
“We recognize the importance of making electric vehicles more accessible and affordable,” Minister Joly said in a press briefing. The revived incentives are expected to offer up to $5,000 off the purchase price of eligible EVs, a figure designed to bring EV ownership within reach of more Canadians amid rising interest in sustainable options.
Incentives return amid rising EV popularity
The move comes after the federal incentive program was paused earlier this year, sparking concerns from both industry experts and consumers alike. According to Transport Canada, electric vehicle sales in Canada surged by over 55% in 2024 compared to the previous year, demonstrating a growing appetite for clean vehicles despite their higher upfront costs relative to traditional gas-powered cars.
For prospective buyers, the incentive could be a decisive factor. “I was holding off on purchasing an EV because of the price, but this rebate makes it more doable,” said Reddit user CanuckDriver95 on r/canada. Their sentiment echoed through the community, with many users expressing cautious optimism about the government’s renewed commitment.
Balancing cost and climate goals
While the $5,000 incentive may not cover the entire price gap between EVs and conventional vehicles, it significantly lowers the financial barrier. Data from the Canadian Vehicle Manufacturers’ Association indicates the average price of an electric vehicle in Canada hovers around $57,000, compared to approximately $44,000 for a new gas-powered car.
“It’s a step in the right direction,” said EcoCanuck, another Reddit contributor. “The initial cost is still high, but incentives like these make EVs more accessible, and that’s crucial for climate progress.”
The incentives will apply to eligible vehicles priced under $55,000, with an additional $2,500 available for models under $45,000, encouraging consumers to choose more affordable, mass-market EV options.
What should consumers consider?
While the rebate is enticing, potential buyers should weigh other factors, including charging infrastructure, battery life and long-term maintenance costs. According to Natural Resources Canada, operating costs for EVs can be significantly lower than for gasoline vehicles, with savings of up to $1,000 annually on fuel and maintenance.
Financial planners recommend consumers factor in provincial incentives as well, which can add thousands more in rebates depending on location. For example, Quebec offers up to $8,000 in provincial rebates, while British Columbia provides up to $3,000.
What EV incentives mean for your bottom line
The return of federal EV incentives signals a broader trend in Canada’s commitment to sustainable living and responsible spending. For Canadians seeking to lower their carbon footprint without breaking the bank, the timing couldn’t be better.
Adam Thorn, Program Director of Transportation at the Pembina Institute, has emphasized the importance of supporting consumers during the transition to electric vehicles. He notes that incentives play a crucial role in making EVs more accessible, especially for middle- and low-income buyers. “Tiering EV incentives based on income — like British Columbia has done — will help ensure tax dollars reach consumers that need it most,” Thorn said.
The road ahead: Why now is the time to consider an EV
As Canada reintroduces EV incentives, the decision signals more than just a rebate. It represents a broader commitment to building a low-carbon future that’s financially accessible to more Canadians. By addressing both environmental imperatives and economic barriers, the federal government is setting the stage for widespread EV adoption, especially as consumers grow increasingly conscious of sustainability and long-term value.
While the initial cost of EVs may still give some buyers pause, the combination of federal and provincial incentives, lower operating expenses and expanding infrastructure offers a clearer path forward. For many households, this policy shift could make the difference between delaying and diving into electric mobility. As climate pressures mount and energy costs fluctuate, EVs — and the incentives that support them — are no longer just a lifestyle choice; they’re quickly becoming a practical financial strategy and a cornerstone of Canada’s transportation future.
Sources
1. Reddit: r/Canada: Ottawa to bring back EV incentives: Minister Joly
2. Electric Autonomy Canada: Eligibility for Canada’s EV incentives should be income-based (August 26, 2022)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Chances are, you’ve heard a relative or friend say you should “get a job in tech.” Of course, that’s not always feasible or of interest, but if you’re someone with an aptitude for and interest in a career in tech, you may want to look to Quebec. A new report from the Information Communications and Technology Council (ICTC) suggests Quebec’s digital economy could employ a quarter of Canada’s technology workers by 2030.
The report provides a six-year outlook on Quebec’s digital economy, predicting substantial growth in the information, communications and technology sector, along with the creation of approximately 196,400 new jobs, bringing total employment to more than 700,000 workers — 25% of Canada’s total tech workforce.
“Quebec plays a vital role in Canada’s digital economy and is a hub for artificial intelligence, interactive digital media and innovation,” a release on the report reads.
Quebec’s growing tech sector
Montreal and Québec City accounted for 61% and 6% of the province’s information and communications technology (ICT) job postings, respectively, from January to December last year. Quebec’s digital economy is bolstered by foreign direct investment and its innovation hubs.
The report stresses it will be important to strengthen the province’s ICT talent pipeline to ensure businesses have a skilled workforce that can achieve innovation, commercialization and productivity objectives. It points to work-integrated learning programs, such as co-ops and internships as the solution.
However, while 74% of employers who hired students through work-integrated learning programs reported that it helped them find the right talent, ICTC’s research found that many employers in Quebec are unaware of wage subsidy programs that can subsidize student hiring.
Challenges for Quebec’s tech sector
Despite the province’s strengths, it faces a cooling ICT job market marked by declining research and development spending, increasing ICT unemployment rates and reductions in the number of ICT job postings.
While demand for tech talent surged early in the post-pandemic period, according to the report Québec’s ICT labour market has transitioned from favouring job seekers to favouring employers.
It’s due to this that a pessimistic projection suggests a potential annual decline of 0.4% in the digital economy.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
As the trade war between the United States and Canada escalates, both Canadians and sympathetic Americans are searching for ways to support Canadian sovereignty with credit cards in hand.
One of the best ways to do so is by buying Canadian — something we’ve covered before — and rebooking vacations in the US to Canadian alternatives.
Fortunately, our nation has more than enough to offer anyone looking to support local tourism. Whether you’re partial to snow-capped mountains, ancient forests, sprawling beaches or rural skylines, Canada has it all and more, not to mention world-class shopping and cultural hot spots.
Check out our breakdown of some of the best spots to vacation in Canada.
Sample gold medal wine in Ontario and British Columbia
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Napa Valley? Think again!
Canada is known for beautiful forests, deep wilderness and unrivalled natural beauty, but is also a rising north star when it comes to wine and spirits.
British Columbia and Ontario are the two provinces best known for their devotion to the grape. These twin heartlands produce Chardonnay, Sauvignon Blanc, Syrah and Cabernet Sauvignon, among others.
What’s more, Canada’s reputation as a great place to not only dine, but wine, has been steadily building for decades with more and more gold medal wins each year from globally recognized wine tasting bodies.
In Ontario some great options for wine country tourism include:
Niagara-on-the-Lake and the Niagara Peninsula
Prince Edward County
Lake Erie North Shore
The Niagara Escarpment and surrounding area
Meanwhile, BC offers a raft of other tasting opportunities, including:
The Okanagan Valley
The Similkameen Valley
Fraser Valley
The Kootenays
For wine connoisseurs, Niagara-on-the-Lake and the Okangan Valley are two of the best wine spots in the country. Both regions have produced gold medal quality wines, according to the International Wine & Spirits Competition and beautiful wineries to visit. Since 1969, the IWSC has been a world leader in wine and spirits tasting.
Shopping north of the border: alternatives to buying US
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The threat of on-going US tariffs and an evolving trade war have led Canadians to fight back by changing our travel destinations and our buying habits.
Canada’s big three shopping hubs are Toronto, Montreal and Vancouver, all of which offer unique shopping experiences that can satisfy even the most curious tourist.
Taking in Toronto: markets and more
Toronto’s St. Lawrence Market is perfect for anyone looking for the feeling of a European style marketplace with the culinary variety to match.
Meanwhile, a fantastic spot for a more original Toronto vibe is Kensington Market with its combination of walkable, pedestrian-friendly streets, and tiny shops. Unlike St. Lawrence Market Kensington is part of a residential neighbourhood so you’ll be shoulder-to-shoulder with Torontonians going about their day.
Your last stop could be the delightfully retro Distillery District east of the downtown core, which sports a heady mix of high-end shopping, restaurants and art galleries.
True to the name, the Distillery District was re-developed from an old distilling and shipping area. This makes for picturesque, cobblestone streets perfectly suited for a social media post or two.
Making it in Montreal: Canada’s nightlife capital
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Montreal has long been considered one of the biggest hubs for Canadian culture in the country, both in terms of nightlife and shopping. Part of this is thanks to the mixing of French and English that combines the best of North America and Europe.
If you’re taking in the city during the day, Bonescours Market is a fantastic spot to shop for produce or made-in-Canada jewellery, crafts and art. The market also offers a range of exhibitions and events.
One of Montreal’s most vibrant neighbourhoods is the Plateau. Mont-Royal Avenue cuts right through this student hub and showcases the city’s character with second-hand shops, great restaurants and bars.
Québec City is also worth a mention while we’re on the topic of francophone Canada. Québec City is one of the oldest cities in Canada and is designated as a UNESCO World Heritage Site due to its melding of French and English colonial architecture.
Canada’s Disney World
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One of the best alternatives for Canadians and Americans looking to swap out a Mickey Mouse vacation is a visit to Canada’s Wonderland.
The theme park opened in 1981 and has long been a destination for Ontarians looking to brave roller coasters, catch the classic Halloween Haunt, or ward off the winter blues with WinterFest. Aside from these special events Canada’s Wonderland includes over 200 attractions and a 20-acre water park.
Snowcapped mountains and skiing: alternatives to Colorado
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Canada is already known for a wintery climate perfectly suited for winter sports of all stripes, including skiing and snowboarding.
One of the best-known ski resorts in the world is British Columbia’s very own Whistler-Blackcomb. This mammoth pair of mountains offer 8,171 acres of terrain, 200 plus marked runs, 16 alpine bowls and even three glaciers.
Whistler-Blackcomb is open daily and a truly unique experience. You can book tickets here.16
For those planning a trip to Canada’s east your best options for skiing are either Mont Tremblant if you’re keen for the night life, or Le Massif de Charlevoix for straight skiing.
Exploring the Canadian Rockies in Alberta and BC
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Naturally, no post about Canadian tourism would be complete without mentioning the Rockies.
After all, Canada’s wilderness, rugged landscape and pristine forests are a huge draw for the adventurous — whether you’re keen to ski or hit the backcountry with bag in hand.
The Canadian Rockies stretch all the way from BC to Alberta. Unlike the American Rockies, our national geological fixture was shaped by the retreat of glaciers, which led to the formation of dramatic peaks, valleys and basins.
Today, the Canadian Rockies are both a haven for dedicated trail blazers and the perfect resort side attraction.
Alberta’s Rockies: mountainside resorts
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One of Alberta’s crown jewels is the resort town of Banff, located right in Banff National Park.
Banff is one of the most beautiful resort towns in Canada. Take in the iconic twin turquoise waters of Lake Louise or Moraine Lake. Explore icefields, ride a gondola up Sulphur Mountain and end the day with a soak in a natural hot spring.
Travellers on a budget should check out the Banff Legacy Trail, which was built for Banff National Park’s 125th anniversary and offers 22.3km of paved paths reaching from the Bow Valley Parkway to the Banff Park East Gate.
Last, but not least, we suggest checking out some of the nearby ski resorts.
Sunshine Meadows
Lake Louise Ski Resort
Mt. Norquay Ski Resort
If travelling to Banff in the off season some of these resorts also offer summer activities, often with a focus on local wildlife viewing.
British Columbia’s Rockies: rugged wilderness
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The Canadian Rockies also stretch into BC, including the picturesque Kooteneys and Yoho National Park of Canada.
Both regions have less tourist and resort infrastructure compared to Banff. This makes for a more rugged, less crowded opportunity to explore Canada’s rich landscape.
The Kootenays span over 200km of trails, scenic driving in a landscape shaped by glaciers, and plenty of backpacking for those looking to dig deep into the park.
Another highlight for archaeologists, amateur or otherwise, are the park’s deposits of Burgess Shale. Over 500 million years ago, the Kootenays were covered by a shallow sea, which means the very peaks of the mountains are rich with perfectly preserved fossils of marine life.
Meanwhile, Yoho National Park is also only 17 miles, or a 45-minute drive, from Lake Louise in Alberta, making it a great day tripping option. Some great spots to visit include the stunning Wapta Falls, Emerald Lake and the picturesque village of Field in the centre of the park.
Stargazing and camping in the prairies and New Brunswick
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Due to our sparse population, Canada is also the perfect place to stargaze while camping, whether beneath the prairie sky or nestled among ancient trees.
The Canadian government is committed to carving out spots to take in the cosmos through its Dark-Sky Preserves program. These areas are far from the lights and sounds of a city and provide some of clearest views of the night sky around.
The program includes 13 viewing areas split across national parks like Saskatchewan’s Grasslands National Park and New Brunswick’s Fundy National Park.
Saskatchewan is perfect for certified star chasers thanks to the province’s endless horizon — the Grasslands National Park is no exception. This also makes it the perfect place for astrophotographers to observe once-in-a-lifetime cosmological events.
Manitoba is another great option for those in search of a return to nature. For example, the Wapusk National Park marks the shift from boreal forest to arctic tundra. During February and March, curious visitors can observe polar bears through Wat’chee Expedition.
Meanwhile, Fundy National Park trades prairie vistas for a dense Acadian forest, remote tidal pools and the ocean floor at low tide.
Aside from star-gazing in an ancient forest, you can hike, bike, golf, swim, paddle and even fish depending on your interests. For a more settled experience, visitors can rent cabins. Thrill seekers on the other hand might be more interested in backcountry camping.
Atlantic Canada: whale watching and the sea
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Canada’s trinity of Atlantic provinces also offer plenty to see and do.
For instance, Newfoundland and Labrador includes St. John’s on the east coast of the island, which has stood by the sea for 500-years. For those looking to get off the beaten path you could instead book a tour to see icebergs, puffins and perhaps even a whale cruising around a glacier. On the west side of the island, you can visit Gros Morne National Park, a recognized UNESCO heritage site, and the Tableland mountains.
On the other hand, Nova Scotia serves up 13,300km of coastline ideal for seaside hiking from lighthouse to lighthouse. The region also sports its fair share of award-winning wineries.
Lastly, Prince Edward Island offers one of the most compact tourist destinations in the country. Driving across the island only takes between three to four hours on a direct route so planning an idyllic day of travel is best. PEI is known for its red-sand beaches, seafood — especially oysters — and coastal views.
The Canadian territories: strong, wild and free
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Canada’s northern territories are just as spectacular, but often come with a higher barrier of entry due to their isolation.
The Yukon, Northwest Territories, and Nunavut are all ideal places to take in a wintery night sky, but they also offer unique chances to explore Canada’s frigid climates.
Nunavut is perfectly suited for learning about northern wildlife, including at bird sanctuaries. The Yukon offers hiking far away from the comfort of a city, including the Chilkoot Trail and the Tombstone Mountains.
Finally the Northwest Territories is one of the best places in Canada to take in the Aurora Borealis (commonly referred to as the Northern Lights) or plan a hunting trip, provided you have the appropriate licenses.
Vacation in Canada
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All in all, there’s never been a better time to explore Canada’s extensive wilderness and tourism hot spots — especially if it means supporting local businesses.
This guide only scratches the surface of what Canada has various natural splendours and attractions. Every province and territory has something special to offer an inquisitive mind, whether arriving from near or far.
Canadians love to rave (politely) about their country, but with its harsh winter weather and relatively high cost of living, there are some who dream of retiring to a warmer, less expensive climate. Whether you’re thirsting for sun and surf, a lower cost of living or you’re just looking for a new adventure, there’s a plethora of destinations around the world that cater to retirees, each with its own blend of affordability, culture and amenities. Below, we explore 12 of the best places to retire in the world, highlighting what makes each country stand out for Canadian retirees.
Methodology
When determining the top 12 best places to retire in the world, we considered factors like the cost of living, political stability and infrastructure, healthcare quality, safety, things to do and see and proximity to Canada. We also looked at the ease and requirements involved in getting a retirement visa/long-stay visa. When doing our research, we consulted a variety of governmental sites, as well as local and international websites.
Panama
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Panama is a wonderful place to retire, thanks to its unique combination of modern amenities, affordable cost of living, fascinating culture and tropical beauty. The country is especially attractive to those who prize an active lifestyle thanks to an abundance of outdoor activities ranging from hiking and birdwatching, to surfing and snorkeling along the coast. It’s also relatively close to Canada, so you can be back home in under six hours via direct flight. The country’s Pensionado Program is one of the world’s most generous retirement visas, offering a series of discounts on things such as doctor’s bills, hotels, entertainment and more. It also gives you residency and tax benefits. These benefits, as well as the country’s affordability, make it one of the best places to retire in the world on a budget.
Portugal
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Portugal is a European destination that’s consistently ranked as the best place to retire in the world. The country boasts plenty of sunshine, affordable living costs and incredible cultural assets. The Algarve region, in particular, is popular with retirees for its beautiful beaches, charming towns and laid-back lifestyle. Portugal’s D7 visa makes it easy for retirees with a modest passive income to get residency. The country is also reputed to be safe, has good healthcare and is among the most affordable in Western Europe, especially if you stick to the smaller towns. With charming cobblestoned villages, acclaimed wine regions and five-star beach resorts, you’ll never get bored exploring what this country has to offer.
Thailand
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Thailand is famous for its tropical beauty, fascinating culture, friendly locals and affordable living. Few can resist the destination’s beguiling mix of modern amenities and ancient attractions and traditions. The Non-Immigrant O-X visa allows those aged 50 and above to stay for up to 10 years (the visa grants holders an initial five-year period that can be renewed for another five years) as long as they meet requirements. Thailand is also among the most highly rated and inexpensive countries in Asia, with affordable housing, fabulous food (from Michelin-starred restaurants to ramshackle food stalls) and an endless array of attractions. With medical tourism being a big industry, the quality of healthcare is generally outstanding, with many English-speaking doctors and hospitals catering to international patients.
France
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La vie est belle en France! The country has it all: a highly regarded food scene, ancient, atmospheric villages brimming with history, one of the most storied capital cities in the world and a never-ending selection of highly acclaimed museums and galleries to whittle away the hours. As if that weren’t enough, France also has a wealth of landscapes, including the fragrant lavender fields of Provence, the lauded vineyards of Bordeaux, the beaches of the French Riviera and the tranquil countryside of Normandy. Retirees are drawn to France’s excellent healthcare, rich cultural heritage, vibrant arts scene and the daily pleasures of markets, cafés and festivals. While Paris is expensive, life in rural villages is much more reasonable. There’s no specific retirement visa, unfortunately, but you can apply for a long stay visa and then apply for residency after five years.
Mexico
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Thanks to its proximity to Canada, its temperate climate and its lower cost of living, Mexico is a top pick for Canadian citizens of retirement age. The country’s relatively accessible permanent resident visa, dynamic culture and thriving expat communities in places such as Puerto Vallarta, Lake Chapala and San Miguel de Allende make it especially appealing. Because it borders the United States and has a booming tourism industry, many of the locals speak English, which can help make integration easier. The cost of living, healthcare and food are all much lower than in Canada, and travel home is easy and affordable.
Malaysia
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Malaysia’s My Second Home program is one of Asia’s most popular Golden Visas programs (where you gain residency by investing a set amount of funds in the country). It allows foreigners long-term residency in the country for five to 20 years depending on the tier chosen, and the visa is renewable. The cost of living is very low, healthcare is top notch and housing is affordable. You’ll never tire of discovering the country’s assets, whether it’s the frenetic energy and multicultural flair of Kuala Lumpur, the picture-perfect beaches of Langkawi or the rainforest and unique wildlife of Borneo.
Italy
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Italy has always captivated the imagination with its rich history, astonishing museums and iconic architecture. It also offers an enviable mix of culture, awe-inspiring landscapes and affordability. The elective residence visa is available as long as you can prove you have the qualifying financial resources. While major cities can be costly, smaller rural areas are less expensive to live in, and housing in particular can be surprisingly cheap, with some small towns making headlines for offering houses at rock-bottom prices to attract foreign residents. Italy’s relaxed pace of life, passion for family and food and deep sense of community are big draws for retirees.
Costa Rica
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It’s hard to resist the call of Costa Rica’s "pura vida.” Literally translated to mean “pure life,” the country’s national motto embodies its optimistic spirit and appreciation for the simple pleasures in life. The country is well-known for its unparalleled natural beauty that showcases white-sand beaches, verdant rainforests, jaw-dropping volcanoes and acclaimed national parks. It also has a reasonable cost of living, a stable democracy and a reputation as one of the safest countries in Latin America, making it among the best places to retire in the world. The Costa Rica Retirement Visa (Pensionado program) only requires a monthly income of about $1,400 Canadian to qualify.
Spain
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While not generally as inexpensive as Greece and Portugal (especially in the main cities), Spain wins over retirees with its delightful Mediterranean climate, beautiful historic towns, mouth-watering cuisine and low-stress lifestyle. The Non-Lucrative Visa allows Canadians to live in Spain with proof of a sufficient income of at least $3,589, monthly. Initially valid for one year, it can be renewed for two-year periods, with permanent residency possible after five years. (Note that Spain’s Golden Visa program, which allowed Spanish residency through real estate purchases or other qualifying investments, has been cancelled as of April 2025.) The Andalusian coast, Costa Blanca and smaller towns in the south are especially popular with expats.
Greece
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Over the last few years, Greece has emerged as one of the best places to retire in the world on a budget. Here you can spend your days exploring ancient ruins, savouring fresh seafood in a seaside taverna or island hopping with friends. Retirees also appreciate the country’s low cost of living, abundance of idyllic islands and the relaxed pace of life. The country offers a Golden Visa program for those who are willing to invest in Greece’s real estate market. Alternatively, the Financially Independent Person (FIP) Visa, which is valid for three years at a time, is tailored to those with a stable passive income.
Switzerland
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While Switzerland is not ideal for a retiree on a budget, it’s renowned as one of Western European’s great gems. Boasting one of the highest standards of living in the world, it gets top marks for to-die-for landscapes that range from legendary mountains (such as the Matterhorn) to piercingly clear lakes, charming medieval towns and captivating cities such as Zurich and Geneva. It’s also incredibly safe, clean and has a stable, highly ranked public transportation system, a well-developed economy and superior infrastructure. The country is centrally located for travel throughout Europe. Switzerland has a retirement visa, but you’ll need to have substantial assets and show a connection to the country via something like frequent visits or property ownership, among other qualifications.
Ecuador
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This South American spot may not be on most people’s radar as a retirement haven, but it should be. The beautiful country boasts some of the most singular and breathtaking landscapes in the world, including Galapagos, a world UNESCO site. There’s also the snow-capped Andes, lush Amazon rainforest and stunning Pacific coastline with pristine beaches. Highland cities like Cuenca enjoy spring-like weather year-round, while the capital city of Quito is a modern metropolis packed with culture, bustling markets and endless amenities. The country’s retirement visa (also known as the Jubilado or 60-III Pensioner Visa) is relatively easy to obtain by showing an income of as little as $2,000 Canadian per month and will get you access to national healthcare, tax benefits and more.
FAQs
What is the cheapest and safest country to retire in?
Portugal, Costa Rica, Panama and Malaysia are regarded as generally safe and among the best places to retire in the world on a budget.
What is the best country to retire to from Canada?
The best place to retire will depend on what you prioritize, whether that be affordability, a temperate climate or quality healthcare. In general, Panama is making its way to the top of the list because of its agreeable weather, low cost of living and its Pensionado Program, which provides generous retiree discounts and an easy path to residency. Portugal, Mexico, Spain and Costa Rica are also popular for their accessible visas, thriving expat communities, quality healthcare and lower living costs compared to Canada.
Is Canada a good place to retire?
Canada is a great place to retire if you value a high quality of life, astonishing natural beauty, excellent health care and a welcoming, multicultural society. The country is consistently ranked as being among the safest countries in the world. It’s not all a bed of roses, however, as winters can be harsh, there’s a shortage of affordable housing and the overall cost of living is high especially in major urban centres.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
President Donald Trump’s tit-for-tat tariff war has led to innumerable impacts, not all of them obvious. For instance, virtually no one predicted how the on-again-off-again U.S. tariffs would impact Alberta’s insurance market. Sadly, that’s exactly what has happenened.
The Insurance Bureau of Canada (IBC) recently commissioned Deloitte to undertake an analysis on the impacts of tariffs on the property and casualty industry (aka: home and auto insurance). What Deloitte found was astounding. According to their analysis the threatened 25% economy-wide tariffs President Trump announced in early 2025 — a tariff that would prompt reciprocal tariffs from Canada — would increase the price of new vehicles and replacement parts by 10.9% for most insurers.
"There is a lot of confusion surrounding tariffs, but the reality is they are here and are adding significant cost pressures to vehicle repairs and replacements that were completely unforeseen when the government extended the auto insurance rate cap last fall," Aaron Sutherland, IBC vice-president, Pacific and Western, said in a statement.
The impact tariffs have on Alberta drivers
While the threatened U.S. tariffs were only partially implemented, it didn’t stop the auto industry from updating and changing their production patterns and supply chains. As a result, the tariffs — real or threatened — have raised insurance premiums for Alberta drivers, in some cases as much as 5%.
For a driver paying $2,500 a year in auto insurance, this means the tariffs tacked on an additional $125 per year.
The impact tariffs have on Alberta’s auto industry
Several areas in the auto sector have been negatively affected by U.S. tariffs, and this has led to an increase in the cost of vehicle repairs and replacements and a strain on supply chains. As a result, the negative effects of tariffs include:
An increase in the cost of new vehicles and auto parts, due to the 50% U.S. tariffs on Canadian steel and aluminum which went into effect June 3, 2025 (after the initial 25% tariff was introduced on March 12, 2025).
Cost of imported vehicles increased by a third, after Canada launched a 25% counter-tariff on non-CUSMA-compliant vehicles imported from the United States.
A loss of jobs and future wage growth as auto manufacturers pause, cancel or close the expansion of their Canadian operations, placing further strain on vehicle repair and replacement supply chains and adding additional cost pressures.
Alberta’s rate cap issues
Even without contemplating the impact of tariffs, Alberta drivers were already facing premium price increases based on a loss trend report released by the Alberta government’s Auto Insurance Rate Board (AIRB). Loss trends are used by insurers in new rate filings — how insurance companies determine how large or small of a premium a driver must pay to insure a specific vehicle.
"The current ‘good driver’ rate cap does not reflect these new cost pressures. Unless insurers are able to account for the impact of tariffs and other growing costs in their rates, they may be forced to further reduce the availability of coverage for drivers to remain financially viable," explains Sutherland.
Based on the AIRB loss report , many vehicle premiums are in excess of the current rate cap and the this will be exacerbated over the next year as costs are predicted to rise. For instance, the AIRB report shows:
Bodily injury (legal) costs will grow an average of 9.1%
Accident benefits (medical/rehab/income replacement) costs will grow an average of 5.5%
The cost of vehicle damage claims will grow by approximately 10%
"New cost pressures created by the trade dispute with the United States are piling on top of other cost pressures in the auto insurance system and creating new challenges for insurers who are paying out more money in claims than they take in through premiums," said Sutherland. The result is that individual drivers will end up with higher auto insurance costs — a cost that won’t decrease until the global economy finds more stability in supply chains and more sanity in trade relations.
— with files from Romana King
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
A few years ago, your brother borrowed money to help pay for groceries for several months, and paid you back. But now, he finds himself short of cash again and you’re not sure whether you want to lend him more money.
Wanting to help out a friend or family member when they’re in a financial bind may seem like a no-brainer, but you need to be sure you’re also taking care of your needs as well.
You don’t have to be a millionaire to gain access to this $1B private real estate fund. In fact, you can get started with as little as $10 — here’s how
For one, you want to make sure you have enough room in the budget to pay for your own expenses — and lend money. You may also need to mitigate other risks, like potential strain on your relationship.
Let’s take a closer look at these risks and if you decide to still lend the money, how to do so responsibly.
Emotional and financial risks of lending money
Even if you have extra money to lend to friends and family, you still want to be careful. Think about from where you’ll pull the money. Is it from sources like your emergency fund or money you’ve set aside for taxes?
Lending money that you may need yourself means a risk of putting yourself in a precarious financial position. If the borrower doesn’t pay back your loan and you were relying on it, you’ll need to figure out how you can meet your financial obligations. It could mean taking out a loan yourself (and paying interest costs) or finding other ways to make up for the shortfall.
Even if you can afford to lend money, you risk your relationship suffering if the borrower doesn’t make payments as promised — or is unable to pay the loan back at all. It could get awkward at future social gatherings or even lead to feelings of resentment.
Still, you may decide that the risks are worth it or you’re absolutely sure the borrower will pay back what’s owed. Before handing over the cash, you’ll want to set some clear rules and guidelines.
Before lending money, be sure you check that you can afford to. Setting clear expectations about the loans is also key.
Create a loan agreement
Creating a written loan agreement can help prevent any issues or miscommunication when lending money. At the very least, the agreement should outline the amount you lent and the repayment terms.
Other details you may want to put into the loan agreement:
Interest rate, if you decide to charge one.
Repayment amount and cadence.
When the loan needs to be repaid in full.
What happens in the event the borrower can’t repay the loan.
Share this document with the friend or family member before lending the money. That way, they can decide whether to agree to the terms. Having open and honest communication from the very beginning ensures that everyone can address questions or concerns about the loan.
Though it may cost you some money, having this document notarized signifies that you take the loan seriously.
Understand any tax implications
You are required to charge interest if you lend your friend or family member more than $10,000, according to the IRS. The amount should be equivalent to the AFR, or the applicable federal rate.
Interest you collect counts as taxable income. It is up to you to determine how much interest you want to charge. However, if you charge a rate lower than the AFR, the IRS may still charge you taxes based on the interest you should have earned.
Be OK with saying ‘no’
Even though it’s an uncomfortable situation, you need to be prepared to say ‘no’ to requests to lend money to family and friends.
At the end of the day, you need to look out for your best interests. It may not be worth risking your financial security to help someone else, especially if it means you could be left in dire straits. Not lending to friends or family because you don’t want to risk ruining the relationship is also a perfectly valid choice.
An Ontario man found out the hard way the responsibilities you take on when you co-sign a loan, and why it’s not a good idea to co-sign a loan for a friend.
“I went in as a co-signer and I had no idea that this could happen,” Mississauga resident Shane Brown told CTV News after learning he is on the hook for $62,000.
“I wanted to help a friend and that’s why I signed the loan. If I would have known what would have happened, I never would have signed it . . . I’m paying for something I’m not even using.”
Hard lesson to learn
For Brown, the predicament began about three years ago when he helped a friend purchase a vehicle because she was having trouble qualifying for a loan. The vehicle was a 2019 Ford Escape and the financing was $62,533.
Brown told CTV News that about a year later he found out that his friend’s ex-boyfriend had vandalized the vehicle to the extent that it was undriveable. So she stopped making the loan payments.
Now, Brown is totally responsible for the $700 monthly payments for a vehicle that has been sitting in an automotive garage for the past year.
“What’s the point of co-signing for somebody,” Brown told CTV. “My friend turned their back against me, how is that supposed to make anyone feel.”
According to MNP, Canada’s largest consumer insolvency firm, the act of co-signing a loan is easy but it’s also very risky.
“If the borrower defaults, the bank will look to you to pay back the loan.”
And this is where it can become tricky for people. MNP says that often people with good credit and little other debt end up filing for bankruptcy because they co-signed a loan and got into financial trouble.
And as Equifax points out: “Co-signing for someone is a significant commitment. So, don’t fill out a credit application without having an in-depth financial discussion with the primary borrower. It’s important to talk to the borrower about their ability to stay on top of their payments and to form a plan in case they fall behind on their financial obligations.”
If faced with a situation like Brown’s, your first step is seeing if you can have your name removed from the loan. But the Financial and Consumer Services Commission of New Brunswick says it can be challenging to remove your name as a co-signer from an existing loan.
“The primary borrower would need to qualify for refinancing or pay off the loan entirely to release you from the loan.”
The issues with co-signing on a loan
Equifax says co-signing a loan may impact a person’s finances in several ways as that person takes on the same financial risk as the primary borrower.
First and foremost, it could increase their debt-to-income ratio which could impact their ability to qualify for their own additional credit. Your credit score could be affected with any late or missed payments.
The biggest impact for a co-signer is being responsible for the payment of a loan if the primary borrower misses a payment.
“Co-signing has the potential to put stress on your relationship with the primary borrower, who is often times a friend or family member. Your finances are tied to theirs for the length of the loan, even if your personal relationship changes,” adds Equifax.
There are several alternatives to taking the step and co-signing a loan for another primary borrower whether it’s for a vehicle or a home. Those include helping out with a downpayment or lending the primary borrower your own money.
So maybe you’d rather not co-sign for someone, but you still want to help. Here are some alternatives to helping someone without agreeing to be responsible for the repayment of a loan.
Fidelity says out that people can help a primary borrower find another loan source.
“Just because one lender requires a co-signer does not mean that all of them will. Each lender will have its own lending requirements. And sometimes it’s worth taking the time to shop around a little.”
Sources
1. CTV News: Ontario man on the hook for $62K after friend stops paying monthly car payments (March 12, 2025)
If you plan on retiring and rely primarily on the Canada Pension Plan (CPP) you may have heard you will end up being perpetually cash-strapped. So, does that mean you should stay at your job? Learn to survive on noodles? Or work more to build up savings?
To help you decide, you first need to understand how your CPP is calculated and what you can expect in your retirement years.
As of January 2025, the maximum monthly amount you can get, if you started collecting CPP at age 65 is $1,433.00. Doesn’t sound like a lot, but it gets worse. Turns out most Canadians don’t even get the maximum amount of monthly CPP income. For instance, in October 2024, the average monthly CPP payment to anyone aged 65 and just starting their retirement payments was $808.14.
Living on less than $1,000 — put another way, living on CPP alone — is no easy feat, especially when inflation continues to drive living costs upward.
And yet so many Canadians rely on CPP as their primary income source in retirement. According to an Ontario Securities Commision survey, 85% of Canadians rely on the federal Canada Pension Plan (CPP) as the vital foundation for their retirement income. Additionally, a 2024 Healthcare of Ontario Pension Plan survey found that almost half (49%) of unretired adults have saved nothing for retirement in the last year, while all Canadians continue to worry about having enough money in retirement (58%).
For those young enough, this should be a wake up call: To start saving for the non-earning years.
For others, it’s a reminder: It’s possible to live on CPP, along, but to make it work, you’ll need to make some sacrifices. To help, here are three suggestions.
Delay your CPP claim for a larger monthly benefit
You can sign up for CPP once you reach age 60, but delaying it for a few years — say until age 65 — allows you to collect your full-CPP monthly benefit (rather than a reduced rate, based on the extra years you are collecting the income). By delaying your CPP claim until age 65, you get your complete monthly benefit based on your individual earnings history.
You also get credits for delaying your CPP claim — a credit for each year past age 60 that you delay. This translates into an 8.4% increase in your monthly benefit, per year, up to a maximum of 42% if you wait to collect CPP at age 70.
By delaying CPP payments, continuing to work and finding smart cost-saving strategies, you could end up in a position where the CPP benefit you collect starting at age 70 is sufficient to live on, without additional savings.
If you can’t wait until 70, try to hold off until 65 to avoid a significant reduction to your monthly benefit.
Scale back your living costs and stick to a tight budget
Only a third of Canadians (33%) currently have a financial plan and 59% do not have a household budget for the year.
If your retirement plan is to live on CPP alone, you must be prepared to budget carefully and limit your spending on non-essential items. That could mean doing most or all of your cooking at home instead of dining out, and limiting yourself to free hobbies such as hiking or community events.
That said, staying busy without spending money by spending time with like-minded people is possible. With the right company, you can enjoy hiking, gardening or discussing your latest library finds over coffee rather than doing activities that force you to open your wallet.
Reduce your housing costs by downsizing
Housing costs account for about 30% of expenses among Canadians across all provinces, according to Advanis.
If you’re forced to rely solely on CPP during retirement, you may need to take steps to reduce your housing costs, and downsizing could be a great solution.
Downsizing could do more than just save you money (as it should allow you the option to pay less rent or reduce those mortgage payments). If you’re a homeowner, downsizing could mean cheaper property taxes and lower maintenance expenses. It also typically costs less to heat and cool a smaller home than a larger one, so there could be some significant savings there, too.
3. Healthcare of Ontario Pension Plan: New research from HOOPP and Abacus Data finds half of Canadian women have less than $5,000 in savings; most Canadians feel unprepared for retirement (Jun 20, 2024)
4. BMO: One-third of Canadians expect to curtail their spending in 2025 (Dec 17, 2024)
5. Advanis: Housing affordability across Canada (Jun 26, 2024)
Choosing the right student credit card is an important step for Canadian post-secondary students looking to build credit and manage expenses. With the right card, you can not only establish good financial habits but also earn rewards such as cash back and discounts that support your student lifestyle. Here’s how to find the best student credit card based on your needs, habits and eligibility.
Look for low or no annual fees
Students often have limited income, so it makes sense to choose a credit card with low or no annual fees. Many cards charge both monthly interest and an annual fee, which can range from a few dollars to several hundred depending on the card. Student-friendly options typically waive these fees or keep them minimal to help you save.
Consider the interest rate
Interest is a key factor when choosing a credit card. If you don’t pay off your balance in full each month, the remaining amount is subject to interest based on the card’s Annual Percentage Rate (APR). In Canada, this typically ranges from 19.99% to 29.99%. Even a small unpaid balance can accrue significant interest over time. For example, a card with a 19.99% APR charges about 0.000548% per day. While that may seem small, the cost adds up quickly and can spiral over a semester if left unchecked.
Evaluate cash back and rewards programs
Many student credit cards offer incentives like cash back or rewards. Cash back cards typically offer 1% to 5% back on qualifying purchases, helping you save on essentials. Rewards cards may offer points toward travel or entertainment. For example, Scotiabank’s Scene+ Visa card lets you earn points toward movies and dining. While rewards programs are more structured, cash back offers more flexibility for paying off purchases or bills.
Look for student-specific perks
Some cards come with additional perks designed for students, such as discounts at popular stores, rewards for academic performance, access to budgeting tools or extended warranties. Your campus’s student centre may also highlight exclusive deals, so check in locally for offers that could stack with your card’s benefits.
Choose a reasonable credit limit
A lower credit limit can help prevent overspending, but going over that limit can hurt your credit score and lead to fees. Anticipate your biggest purchases and make sure your credit limit covers them. If you plan to book a $1,000 flight home from school, factor that into your desired limit.
Watch for fees and penalties
Unexpected charges are a common issue for first-time cardholders. The most important thing to watch out for are late payment fees, over-limit charges and foreign transaction fees. Paying interest doesn’t necessarily mean you’ve misused your card, but it’s crucial to factor those costs into your monthly budget and build financial literacy.
Build your credit score
A strong credit score can make a major difference when applying for housing, loans or even jobs. In Canada, scores range from 300 to 850 and are classified as poor, fair, good, very good or excellent. Most banks report to credit bureaus such as Equifax or TransUnion. If you’re considering a card from a lesser-known provider, confirm it reports to one of these agencies so your positive credit activity counts.
Check customer service and support options
When problems arise, you want quick access to help. Choose a card issuer that offers multiple customer service channels, including online chat, mobile apps, email and phone. Having flexible support options is especially useful in emergencies like fraud or disputes.
Why you should get a student credit card
A student credit card can help you build credit history, manage everyday expenses and earn rewards or cash back. Used responsibly, it sets the foundation for financial success after graduation. However, it also requires discipline. Making regular payments, staying within your limit and keeping track of charges are essential to avoid long-term financial damage.
How to apply for a student credit card
Research your options based on fees, rewards, eligibility and reviews.
Ensure you meet eligibility criteria, usually including age of majority, Canadian residency, student status, and no recent bankruptcies.
Prepare documents like proof of enrollment or income.
Submit an application, either online or in person, which typically takes less than 15 minutes.
Wait for approval, which usually takes three to five days before your card is mailed.
Can you get a student credit card without a job?
Yes. While some providers ask for proof of income, you can often use alternative sources such as student loans, scholarships or parental support. As long as you can demonstrate the ability to pay back expenses, you may still qualify.
Can international students get credit cards?
Yes. Major Canadian banks such as BMO, Scotiabank, CIBC, RBC and HSBC offer unsecured credit cards to international students with limits up to $1,000. TD offers secured cards to newcomers, requiring a deposit as collateral.
Dave Ramsey has fervently preached financial advice to North Americans for decades — but younger generations are now slamming the white-bearded radio host for offering counsel that doesn’t quite account for the current cost-of-living crisis.
One frothy example is Ramsey’s repeated attacks on those who spend money to buy their daily cuppa Joe. In a 2021 blog post, Dave Ramsey claimed a daily coffee habit could cost someone US$766 a year (about C$1,044 at the time). As of 2024, with rising café prices, that cost is closer to US$950 annually (C$1,300), according to Statista and recent coffee price data. That’s quite a bit of money, explains Ramsey — money that could be spent on paying down student debt, boosting savings or investments or even towards better consumable purchases, such as a newer vehicle.
But the younger generation argues that they’d rather sustain their mental well-being and hold onto the small luxuries that bring them joy rather than save a little extra cash.
“Self-care is extremely important,” Jarrod Benson, a 32-year-old comedian from Orlando, Florida told Business Insider. Benson considers his daily coffee purchase a self-care routine. He adds: “I’d rather be caffeinated than depressed with $6.”
Does Benson have a point? Is it important to spend on the small luxuries? Or should more people heed the advice of Dave Ramsey (and other financial influencers) and cut back on the little luxuries in life?
Social media users scorn Dave Ramsey’s advice
As of May 2025, the hashtag #daveramseywouldntapprove has about 85 million views on TikTok, with scores of users posting videos criticizing the finance personality for being out of touch with reality and shaming their money habits.
Benson, for example, didn’t hesitate to jump on the bandwagon with his own content, featuring himself sipping a pumpkin cream cold brew or getting a US$4 Crumbl cookie before cutting to his Ramsey impersonation watching menacingly from a distance.
It’s clear that Ramsey’s advice, which often includes living frugally or taking on more work to increase your income, doesn’t quite resonate with younger listeners.
Not willing to do anything to get out of debt
In a recent TikTok, Kate Hindman, a 31-year-old administrative assistant in Pasadena, California, emphasizes that her mental health and quality of life are far more important to her.
“I’m not willing to do anything to get out of debt,” she says. “I’m not willing to eat rice and beans everyday, I’m not willing to have three jobs and not spend time with my children. I’m not willing to forgo my favourite salad on a Friday.”
Hindman explains that her bills are so massive that a little extra cash saved here and there isn’t making a major dent in paying down her debt.
“The cost-of-living and low wages is to blame for the financial woes of most,” she says. “Being told that we can incrementally make these big differences if we just give up our quality of life for five, 10 years is absurd.”
According to Equifax Canada, Gen Z and Millennials carry average non-mortgage debts of C$17,338 and C$29,056 respectively — levels that have grown even as wages stagnate.
Ramsey’s financial advice isn’t always right
There’s another reason for the backlash against Dave Ramsey: His financial advice isn’t always the right.
For instance, Hindman decided to convert $30,000 in credit card debt into a debt consolidation loan with an 8% interest rate. Keep in mind, interest rates on debt consolidation loans currently range between 7.5% and 13.5%, depending on credit score and lender type. To find the best rates, consider using a loan consolidater, such as Loans Canada. Despite the advantage of lowering your debt costs, this is a tactic Dave Ramsey famously despises. He claims it doesn’t actually work, arguing that the lower interest rate removes the pain of debt and can lead to people carry debt for longer.
However, the use of debt consolidation loans to pay down debt faster — and at a cheaper cost to the borrower — is undeniable.
Spring Financial: Competitive loan rates and the ability to apply and complete the process right from your mobile phone
Fairstone: Canada’s leading non-bank lender with competitive rates for borrowers with fair to poor credit
Other debt consolidation options for Canadians: For those who want to pay down their debt quickly another option is to consolidate higher-interest debts using a low-interest credit card. By dropping your annual credit card interest rate from 22.99% to 12.99%, you can save more than $900 in interest costs (assuming you carry a $5,000 credit card balance and it takes three years to repay the loan). Good options for low-interest credit cards include:
Like any debt-solving hack, whether taking on a new, lower-interest loan really works, depends. It can be harder to keep track of multiple credit cards at once than pay off one bill each month. Plus, if you secure a lower interest rate on your loan than what you were grappling with on your credit cards, this can be a great opportunity to save hundreds or thousands of dollars on your debt load in the long run.
On the other hand, there could be additional costs involved with a new loan, such as origination fees—upfront fees a borrower pays in order to get the loan — prepayment penalties or late payment fees.
Using the Debt Snowball method to get out of debt
Rather than consolidate debt using a lower interest rate loan, Ramsey recommends using the snowball method. Using this debt repayment strategy, borrowers pay off their smallest debt (or account with the lowest balance) first and make only minimum payments on all their other outstanding debts.
This method of tackling debt works as it offers behaviourial incentives to the borrower. Paying off a debt is liberating and incentivizes the borrower to repeat the process — over and over, until all debt is repaid. However, tackling small debts, first, without any concern for interest rates can cost the borrower. Larger debts with higher interest rates go unpaid, sometimes for quite some time, and this adds to the overall cost and burden of the debt.
“What Dave Ramsey would say is, ‘I don’t care if paying down the highest-interest debt first is the cheapest, because if you give up midway through, that’s more expensive,’” James Choi, a finance professor at the Yale School of Management, told The Wall Street Journal. As such, Choi isn’t convinced that everyone should adopt the snowball method when tackling debt. And his skepticism may be justified. In a recent study by the University of British Columbia, researchers found that while the debt snowball method improved motivation, the debt avalanche method — paying your most expensive debt first — reduced repayment time by an average of four months.
While there’s little doubt that using the snowball method for tackling debt works, that doesn’t mean it’s the right solution for everyone.
So, what is the right solution, particularily when it comes to spending on those small indulgences?
What the health experts say
Research shows that when we focus on something that we believe is positive or affirming, this attention brings us joy and has a positive impact on our mental health.
“A little luxury is something that brings a spark of joy, beauty, or delight to your day. It is not something you need, but it is something that makes your day the tiniest bit more extraordinary,” explained Jillian Amodio, LMSW, Founder of Moms for Mental Health, in an interview with Verywellmind.com.
Over the last year, a number of surveys show that Canadians of all ages are feeling the pinch of the increased cost of living and, as a result, were making changes to how they spend money. This isn’t surprising since inflation has outpaced wage growth for the last few years. In a 2024 RBC report analysts showed how real wages in Canada were flat despite a 15% cumulative rise in core living expenses since 2021.
In the U.S., more than half (56%) said they’d have to make cuts to their household spending. Apparently, Canadians agree. In a 2025 Ipsos Reid poll, 61% of Canadians said they had cut back on dining out, with 49% delaying non-essential clothing or electronics purchases. These sentiments indicate a potential shift in what people consider essential. It appears that not everyone agrees on the relevance of little luxuries like buying a cup of coffee at the local barista.
“Little luxuries are personal and subjective. What feels indulgent to one person may not have the same effect on another," explained Robert Cuyler, PhD, and Chief Clinical Officer at Freespira, a U.S.-based private firm specializing in medication-free treatment of anxiety and panic attacks, in an interview with Verywellmind.com.
"The key is to find what works for you and make it a consistent part of your self-care routine. Remember, taking care of yourself is not selfish; it’s necessary for maintaining good mental health and being your best self for others,” Dr. Cuyler concludes.
