Category: Moneywise

This year’s election cycle is anything but boring, and that’s putting it lightly. Between rising global tensions, and the return of Trump-era tariffs, it’s easy to feel uneasy about investing your money.

More investors are looking local for opportunity. There’s a growing “Buy Canada” push from policy-makers, retailers and investors alike. But where does that leave the everyday Canadian?

With the Canadian election now slated for April 28, let’s take a look at each party leader and where this might lead in the future of investment in Canada.

If you think Mark Carney will win

Mark Carney, former governor of both the Bank of Canada and Bank of England, has a track record focused on economic stability, climate leadership and reduced reliance on foreign trade. Especially with the US.

Read More: Best healthcare stocks

Under Carney, investors should expect significant federal support for green infrastructure and clean tech. In the past, Carney pushed for coordinated investment into green projects globally. A Canadian strategy would likely include expanded incentives for renewable energy generation, electric vehicle (EV) infrastructure, battery storage and carbon capture.

Read More: Best renewable energy stocks

Trade policy is another key piece of Carney’s platform. He voiced scepticism about expanding trade with China, supporting shifting manufacturing capacity and supply chains back to Canada. This domestic push could benefit Canadian rail companies, fertilizer producers and auto part manufacturers.

Carney is also expected to favour stronger public healthcare infrastructure. He would likely continue expanding support for long-term care, digital health platforms and elder care solutions. Canada’s aging population, projected to reach nine million seniors by 2030, makes this a key area for both public and private investment.

If you think Pierre Poilievre will win

Pierre Poilievre is now a close second in national polls, according to CBC’s poll tracker, and campaigning on a platform that favours deregulation, tax cuts and energy expansion. His economic vision is rooted in pro-growth conservatism, and he’s made it clear he intends to remove "gatekeepers" standing in the way of industry.

The most obvious sector to benefit under Poilievre is oil and gas. He promised to fast-track major energy projects and ease regulatory hurdles for pipeline development. In 2023, Canada produced about 4.8 million barrels of crude oil per day, and the industry contributed over $70 billion to GDP. Yet pipeline capacity remains a bottleneck. A Poilievre government could clear the way for new infrastructure, boosting companies that transport and produce oil and natural gas. As well as the firms that construct these projects.

Read More: How to invest in oil

Poilievre’s platform would also favour the banking and real estate sectors. He committed to tax cuts and deregulation, particularly for small businesses and financial institutions. With interest rates expected to stabilize or fall in the second half of 2025, mortgage lenders and real estate investment trusts (REIT) could benefit from a more favourable lending environment. Poilievre has also floated allowing working seniors to earn up to $34,000 tax-free, which could stimulate additional investment activity and home ownership demand.

Read More: Canadian bank stocks

If you think Jagmeet Singh will influence government

Jagmeet Singh and the NDP may not win a majority, but NDP support could be crucial in a minority parliament. And that influence would come with clear policy demands: expanded public health care, affordable housing and a just transition to green jobs.

Singh is a long-time advocate for national pharmacare, dental care, and long-term care reform. In 2022, his party helped push through Canada’s first federal dental care plan, and more recently he’s pledged to continue targeting corporate landlords and high drug costs. This policy pressure could lead to expanded government contracts and funding for healthcare providers, pharmaceutical distributors and elder care services.

Housing is another major area of NDP focus. Singh has been vocal in attacking corporate landlords and promoting co-op housing models. In 2023, the NDP proposed a $5 billion affordable housing initiative aimed at creating 500,000 new units over 10 years.8 If even part of this becomes reality, companies in the space could see steady demand.

Final thoughts

Canada’s 2025 federal race is already shaking up market sentiment. And depending on who you think will lead, different sectors could see a boost.

Mark Carney would likely prioritize clean energy, critical minerals and domestic infrastructure. Investors expecting a Carney-led government may want to focus on sectors tied to climate tech and Canadian supply chains, especially with renewed US tariff threats on the horizon.

Pierre Poilievre’s platform is built around energy expansion, tax cuts and deregulation. That could mean strong upside for oil and gas producers, banks and construction firms benefiting from faster project approvals and less red tape.

Jagmeet Singh may not lead, but his influence could shape policy in a minority government. His push for public healthcare, affordable housing and a just transition to renewables could drive long-term support for social infrastructure and green jobs.

Wondering how to buy stocks in Canada? Start by choosing from one of the best investment apps, many of which are offered by Canada’s discount brokerages. Whether you’re building a portfolio from scratch or just looking to diversify, the best ETFs in Canada can be a simple, cost-effective way to get started.

Sources

1. Government of Canada: Investing in Canada Plan – Building a Better Canada

2. Reuters: Chinese stocks offer hedge against fading U.S. exceptionalism, by Taosha Wong (Mar 17, 2025)

3. CBC: Canada Federal Poll Tracker

4. Politico: ‘Canada First’ Conservatives primed for Trump fight, by Mikey Djuric (Feb 15, 2025)

5. Globe and Mail: Conservative Leader Pierre Poilievre pledges to allow working seniors to earn up to $34,000 tax free, by Bill Curry (Mar 26, 2025)

6. Global News: Jagmeet Singh blasts corporate landlords during campaign event (Mar 25, 2025)

7. NDP

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

At 60, if you have $1.2 million saved for retirement, you have more than double as much as most of your peers, according to Statistics Canada.

But even though that’s a lot of money, it’s important to manage your sizeable nest egg carefully. You could try to live off of dividend income from your portfolio, or draw down your total portfolio over time.

Living off of portfolio income alone

A 2024 CPP Investments survey found that 61% of Canadians are more worried about running out of money during retirement.

The nice thing about living on portfolio income in retirement is that you aren’t touching the principal, meaning it should, in theory, hold steady or grow rather than shrink.

But it takes a lot of principal to generate sufficient income to live on, especially when dividend yields are as low as they are today.

The average S&P 500 dividend yield is currently just 1.27%. Even if you assemble a portfolio of individual stocks with higher dividend yields, you may only be looking at 5%.

For a portfolio worth $1.2 million, that’s $60,000 in annual income, which may or may not be enough to maintain your lifestyle.

Of course, it’s not a good idea to keep your entire portfolio in stocks. A safer bet is to split your assets between stocks and bonds, which could produce a little under a 5% return. It is doable, but whether the income suffices depends on your income-related needs.

Keep in mind you’ll have CPP benefit, as well. With the average retired worker collecting about $808 per month or up to $1,433.00 if you delay receiving it, you could be looking at up to $17,200 in benefits annually.

When you combine these government pension earnings with your investment portfolio income that works out to just over $77,000 in retirement income, each year.

But there’s one big caveat: While living on your portfolio income allows you to preserve your principal investment portfolio, to a degree, neither growth of that portfolio nor income generated from the portfolio are guaranteed.

Market volatility means your stocks could fall in value, eroding your principal. Stock dividends aren’t guaranteed the way bond interest and principal are guaranteed, assuming you hold the bonds to maturity.

The other risk of an income-only approach is that you could lose purchasing power over time due to inflation, which drives living costs upward. Assuming the income you earn from your portfolio holds steady at $60,000 per year, this may be adequate when you start retirement, but find it doesn’t stretch far enough a decade or two into retirement.

The “total return” approach

Another option is to live on income and principal from your portfolio — the “total return” approach — as you whittle down your principal while enjoying dividends.

This is a more flexible approach. You can sell principal assets and take advantage of market gains. As your portfolio grows, a total return approach gives you access to more annual income, making it easier to keep up with inflation.

Here’s how this might work. Say you have $1.2 million and you decide to follow the 4% rule, drawing down 4% of your principal annually to ensure your savings last 30 years. In your first year of retirement, you’d receive $48,000 of annual income. If inflation then rises 2% the next year, you’d withdraw $48,000 plus another 2%, or $960, for a total of $48,960.

As your portfolio gains value, you can keep adjusting your withdrawals for inflation, making it easier to keep up with the cost of living.

The 4% rule is just a guideline. There are other factors to consider as you determine your withdrawal rate: market conditions, your investment mix, and your life expectancy.

For example, Morningstar found that a 3.3% withdrawal rate was optimal for retirement savings in 2021; 3.8% in 2022; and 3.7% in 2024.

This means that while the “total return” approach offers more flexibility, it requires an ability to constantly adjust to market conditions and your personal needs. It’s a good idea to enlist the help of a financial adviser who can help you adjust your withdrawals as needed.

In this approach, too, if your portfolio loses value, you may have to withdraw less temporarily until the market settles. It’s wise to have one to two years’ worth of living expenses in the bank so you can leave your portfolio alone for a period of time if need be.

It’s also important to have income-producing assets in your portfolio that help it gain value from year to year. Dividend and interest income could help offset market losses.

So all told, no matter which approach you take, the right investment mix is crucial.

Sources

1. Statistics Canada: Assets and debts held by economic family type, by age group, Canada, provinces and selected census metropolitan areas, Survey of Financial Security (Oct 29, 2024)

2. Y Charts: S&P 500 Dividend Yield

3. Government of Canada: CPP Retirement pension: How much you could receive

This article I’m 60, ready for retirement with $1.2M saved. I plan to live off dividend income — not sell assets. Is this really more risky than a ‘total return’ approach? originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

You’ve spent days researching and you think you’ve finally found the perfect car for you. You’re ready to drive it off the lot and into freedom. There’s just one slight snag: You can’t drive your dream car anywhere because you don’t have auto insurance.

Auto insurance is one of those pesky financial necessities in life. Although most of us don’t enjoy shopping or paying for it, it is a legal requirement if you want to be able to drive that car.

This article is a primer on everything you should know before you choose auto insurance in Canada. We’ll take a look at the different types of coverage available, factors that influence premium costs and the important details you should consider before you buy.

How does car insurance work?

Car insurance works a lot like home insurance, where the premiums you’ll pay to an insurance company are based on the carrier’s estimated annual cost of covering your vehicle.

Premiums are calculated based on several factors. One of them is how much the insurance company believes it will have to pay out in claims in the coming year. You’ll pay your car insurance company premiums on a monthly or annual basis in exchange for taking on your vehicle’s risk.

The insurance company then collects all the premiums from the drivers it protects and places it into one large pool to cover the losses from customers filing for claims throughout the year.

You’re covered for the losses in your car insurance contract only, which means it’s important to review you policy in detail before signing up to make sure you understand the extent of your coverage.

However, car insurance contracts aren’t always the easiest to understand. If you need clarification about your coverage, it’s a good idea to speak with your insurance representative to get a better understanding.

Who needs auto insurance?

Simply put, if you’re a motorist in Canada, you’re required to have auto insurance, and skimping out on it can lead to a major fine. Ontarians caught without auto insurance, for example, are looking at a fine between $5,000 and $50,000 for a single offense, and they could also have their driver’s license suspended and car impounded.

But that’s not all. Anyone found to be driving without valid auto insurance could be considered a high-risk driver, and as a result might face higher auto insurance premiums or be refused auto insurance in the future. If an uninsured driver is involved in a collision and found at fault for an accident causing injury or death, they could be found personally responsible for the injured party’s medical costs and any other losses.

What are the different types of car insurance available?

The minimum level of auto insurance required in Canada varies throughout the country, so it’s important to familiarize yourself with your province or territory’s requirements to ensure compliance.

Third-party liability coverage

The most basic car insurance is third-party liability coverage. This protects you, the driver, against paying for damage you cause to someone’s property. It also protects you if someone else is killed or injured as a result of an at-fault collision committed by you. The minimum coverage varies by province, but at the very least it should cover the medical costs of anyone injured in an accident: Third-party liability coverage is mandatory in Canada.

Collision coverage

In addition to protecting you from third-party liability, collision coverage also covers you if you hit something other than a vehicle, such as an embankment or guardrail. It’s fairly common for this policy to also protect you if you’re involved in an accident with a motorist who isn’t insured. This broader level of coverage typically costs more than liability.

Comprehensive coverage

As its name suggests, comprehensive coverage provides the broadest range of protection. Not only does it usually cover medical and collision-related damages, but it may also protect you in the event of theft and floods. However, this comes at a cost, as comprehensive premiums are usually the highest among the three.

Specified perils and all perils

Two other optional types of auto insurance you might consider signing up for are specified perils and all perils. As its name implies, specified perils coverage protects you against specific damage to your vehicle, like theft or attempted theft, and weather-related damage, such as fire, lightning, windstorms and earthquakes. Meanwhile, all perils coverage combines the protection you receive under collision and comprehensive coverage.

It’s important to weigh the amount of coverage you need with the premium you’ll pay in order to find the auto insurance coverage that’s right for you. A lot of us like to shop for the option with the lowest premium, but as the old saying goes, you get what you pay for. When shopping around, it’s important to also look at the amount of coverage you’ll receive to ensure it’s sufficient. The last thing you want is to end up paying a lot of money out of pocket if you ever need to file a claim.

Is auto insurance different from province to province?

Although auto insurance is mandatory for drivers in all provinces across the country, there are key differences depending on where you reside, including the rates that are available to you.

For years, Ontario has consistently had the highest auto insurance rates in the country. Although it’s hard to pinpoint the exact reason why, reports have cited insurance fraud and auto theft as the main reasons. Meanwhile, Quebec has consistently had among the lowest auto insurance rates in the country over the years.

In most provinces, your only choice is to get auto insurance from private companies. That being said, there are some provinces that offer private and public auto insurance coverage, such as B.C., Manitoba and Saskatchewan, plus the option of extra coverage from private companies.

However, Quebec falls into its own category, as public insurance protects you in the event of injuries or death, while private companies protect you for property damage.

What factors influence the cost of auto insurance?

If you’re anything like me, you may have a tendency to complain that your auto insurance premiums are too high. But your premium might make more sense if you understand how it’s calculated. Insurance companies set its prices based on a number of factors, including:

Vehicle make, model and production year

Your vehicle’s make, model and production year has major bearing in premium costs. For example, sports cars are typically more expensive to insure compared to sedans. This boils down to two factors: Sports cars not only tend to have a higher retail price, but they’re also more likely to be involved in a collision.

Driving history

Your driving history is another big factor. If you’ve never received as much as a speeding ticket, you could save thousands of dollars in auto insurance premiums compared to someone who has several speeding tickets and has been involved in collisions.

Demerit points

Incurring demerit points for driving infractions, such as dooring a cyclist or speeding, can impact the auto insurance premiums you’ll pay, as well. Demerit points won’t affect your premium immediately, but they will when the policy comes up for renewal, as long as your insurance company checks your driving record.

Place of residence

A lot of motorists aren’t aware that where you live can have a big impact on their auto insurance premiums. Some neighbourhoods have a history of filing more claims than others. If your area has a lot of break-ins and collisions, be prepared to pay for it.

Age and gender

Two more factors that influence car insurance premiums are the driver’s age and gender. Insurance is one of the few industries where companies can legally discriminate based on age and gender in pricing. All things considered, you’ll generally pay less for auto insurance the older you are—at least until you hit your golden years, when you’ll be forced to fork over more for premiums. Men generally pay higher auto insurance premiums than women, as they are known for exhibiting riskier driving behaviour.

How can drivers minimize what they pay in auto insurance?

Who isn’t looking to pay less for your auto insurance? Here are some simple ways to cut down on what you pay and free up room in your monthly budget for savings or investing.

Bundle and save

Are you a homeowner? By bundling your home insurance with your auto insurance (using the same insurance company) you can expect to receive a discount. Typical discounts range between 5% and 25% on the overall cost of both insurance products.

Raise your deductible

Your deductible is the amount that you’re required to pay out of pocket before your insurance company will chip in in the event of a claim. By choosing a higher deductible, you could save a substantial amount on your monthly premiums. Typical deductions range from $500 to $5,000 — the higher the deductible the cheaper your insurance premiums. Just be sure that the deductible you select is manageable, should you need to make a claim. Inquire with your insurance company and check out the deductible options that are offered.

Shop around and save

Many of us have our car insurance on auto pilot; we’re too busy to allocate time toward shopping around and simply renew with our existing insurance company. While that may be convenient, it’s not necessarily cost effective. By shopping around, you’ll have the peace of mind that you’re getting a good rate and adequate coverage.

How to get insurance for a car in Canada

You can buy auto insurance from a licensed insurance broker, which is someone who offers insurance from a number of different insurance providers. The broker will research the market for you to find the carrier with the coverage you’re looking for at the best rate.

Another choice is to use an insurance agent. They typically represent a single insurance company, so it might still be a good idea to do your own additional research into possible alternatives to what the agent suggests. Similar to insurance agents are direct writers, who work for carriers that sell directly to consumers.

A third choice is to shop online on your own behalf. The upside to this option is that you feel like you’re in the driver’s seat. The downside is that insurance can be complicated, so you’ll probably want to speak to a human being at some point.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A new Interac survey shows nearly all – nine in 10 – Canadians say supporting local Canadian businesses is important to them. Only slightly less, eight in 10, agree that buying Canadian feels more important than it did last year, due to the trade tensions caused by the US.

"Amid the current climate of economic uncertainty and evolving tariff threats, Canadians are looking at their spending in a new light," Debbie Gamble, Interac’s group head, chief strategy and marketing officer, said in a statement.

"Our survey results confirm that Canadians are very intentionally exercising their spending power – choosing to support local businesses even if they may need to spend more to do so. This trend has emerged despite longstanding cost-of-living pressures and demonstrates a powerful commitment to local communities."

In fact, the ‘buy Canadian’ impulse is not weakened by pricier goods, with over half prepared to spend an extra $5 to buy a product locally. A third would pay $10 more.

Power of buying Canadian

Buying Canadian-made products is more than just a mantra for many. The sentiment is gaining momentum in lockstep with increased tensions regarding US trade and it’s making many of us think far more seriously about the origins of our purchases when we shop. Among the top motivations for choosing Canadian-made products are:

• Supporting the local economy (79%)
• Trust in Canadian quality standards (56%)
• Patriotism/Canadian pride (55%)

More than two thirds of Canadians polled believe the way they choose to spend their own money has a direct impact on their local community. Subsequently, 73% of Canadians see more value in spending their dollars on local or Canadian-made goods.

Another majority – eight in 10 Canadians – are likely to choose Canadian-made products over imported ones.

When it comes to which businesses deserve support, 82% of respondents to the survey said they prioritize micro and small businesses in their communities, while just under a quarter identified large international corporations.

Given the strong support for homegrown products, three quarters of Canadians believe local businesses are more important to their communities than online-only retailers.

Product clarity

Despite the surge in maple syrup-blooded patriotism, many respondents reported difficulties in determining where each product originated.

While seven in 10 Canadians polled actively look for products that are clearly Canadian-made, four in 10 find it difficult to verify where products are made before purchasing.

“Sixty-six cents of every dollar spent locally, stays locally. It benefits the business, their employees and the whole community,” Dan Kelly, president of the Canadian Federation of Independent Business, said.

Survey methodology

The survey was conducted by Hill & Knowlton from February 6 to 9, among a representative sample of 1,500 Canadians using Léger’s online panel.

This article Canada sees surge of support for buying localoriginally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Elon Musk is one of the most influential entrepreneurs of our time, with ventures spanning from electric vehicles (EV) and space travel, to artificial intelligence (AI). But recently, Musk stepped into politics, and not every investor is happy about it.

Recently, a wave of protests, known as the “Tesla Takedown,” have been targeting Tesla dealerships across the US, Canada and Europe. The protests stem from concerns over Musk’s political ties and his involvement in shaping government policies, particularly through the Department of Government Efficiency (DOGE). While Tesla has always been a polarizing company, these protests have escalated to vandalism.

Now the question remains: Should investors put their money into Musk’s empire? Will Tesla face backlash? Can SpaceX continue to expand its dominance into intergalactic exploration? Will xAI emerge as a major player in artificial intelligence? Let’s break down whether investing in Musk’s companies is a move that could bring reward or far too much risk.

Tesla backlash

Tesla’s self-driving technology has been a cornerstone of its value proposition, but recent controversies are raising red flags for investors. The company has long insisted that camera-based vision is sufficient for autonomous driving, rejecting the use of LiDAR (Light Detection and Ranging) sensors. However, recent experiments have shown significant weaknesses in Tesla’s approach.

A test conducted by CleanTechnica on March 17, 2025, demonstrated how Tesla’s camera-based Full Self-Driving (FSD) system struggled in low-visibility conditions such as rain, fog and smoke. Meanwhile, LiDAR excels in these conditions.

On top of that, a massive recall of Cybertrucks was issued after reports that parts of the trim, including the truck’s stainless steel siding, can come loose or fall off while driving, further fuelling concerns about quality control and reliability.

Financially, this could impact Tesla’s market position. A 2024 survey by J.D. Power found that 74% of EV buyers consider advanced driver assistance systems a key factor in their purchasing decisions. If Tesla’s FSD falls behind competitors that adopt LiDAR, the company could lose a significant share of the growing autonomous vehicle market.

Meanwhile, shares have already shown volatility. Since December, Tesla has fallen 48%, making it one of the worst-performing large-cap stocks of the year.

SpaceX: A dominant, but private, space player

While Tesla faces challenges, SpaceX is thriving. The company recently completed another successful astronaut mission, reinforcing its reputation as the global leader in commercial spaceflight. More importantly, SpaceX’s Starlink satellite network is expanding, providing high-speed internet to remote locations worldwide.

That said, not everything is smooth sailing. Recently, a Starship test flight ended in an explosion during re-entry, highlighting the risks still inherent in the company’s ambitious development timeline.

Starlink’s growth has been staggering. Despite this success, SpaceX remains private, leaving retail investors unable to buy shares directly. However, there are indirect ways to invest. A BNN Bloomberg report revealed SpaceX’s inclusion in a little-known aerospace exchange-traded fund (ETF) triggered a surge in investor interest. The Procure Space ETF (UFO), which includes holdings tied to SpaceX’s business ecosystem, saw inflows increase by 28% in one week following the news.

For Canadian investors, ETFs provide a way to gain exposure to aerospace and satellite technology. Those interested in the sector should explore the best ETFs for Canadian investors that include companies linked to space innovation.

xAI and the Private Equity Dilemma

Musk’s AI company, xAI, recently made headlines for its chatbot, Grok, a direct competition to OpenAI’s ChatGPT. The company aims to revolutionize AI by focusing on truth-seeking algorithms rather than politically biased outputs. However, like SpaceX, xAI is private.

Some investors are trying to gain exposure through private equity platforms. Private market investing has surged, with firms such as Wealthsimple Private Markets offering access to high-growth startups for accredited investors. Wealthsimple allows Canadians to invest in private equity funds, though the minimum investment amounts are often high, and liquidity is limited.

Should you invest in Musk’s ventures?

Musk’s companies are undeniably exciting, but not all are easily accessible for investors. So if you’re considering investing in Musk-led ventures, here are the key takeaways to consider:

• Tesla is still a strong EV brand, but its self-driving approach is facing scrutiny. Investors should watch regulatory developments and competitive advancements in LiDAR.
• SpaceX dominates the space industry, but retail investors need to look at ETFs that include related companies.
• xAI is a potential AI disruptor, but remains private. Investors interested in AI may need to look at public alternatives like NVIDIA, or explore private market options through Wealthsimple.

Final thoughts: Is hype enough?

Elon Musk’s ventures are filled with promise, but investors must separate excitement from strategy. Investing in disruptive industries can be appealing, but understanding risk, access and market conditions is essential. Whether Tesla, SpaceX-related ETFs, or AI investments catch your interest, always diversify and invest wisely.

Wondering how to buy stocks in Canada? Start by choosing from one of the best investment apps, many of which are offered by Canada’s discount brokerages. Whether you’re building a portfolio from scratch or just looking to diversify, the best ETFs in Canada can be a simple, cost-effective way to get started.

Sources

1. CleanTechnica: Lidar vs. Cameras = A Giant Fail For Tesla

2. J.D. Power: Vehicle Alerts Cause Most Complaints About Advanced Driver Assistance Systems, J.D. Power Finds

3. BNN Bloomberg: SpaceX Addition Spurs Flood of New Cash Into Little-Known ETF

This article Tesla protests, saving astronauts, xAI, DOGE — Should you invest in Elon Musk?originally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

An Edmonton property developer, Christenson Group of Companies, is facing mounting financial troubles, leaving more than 200 former residents in financial limbo.

The company owes approximately $75 million to individuals who had invested in life-lease contracts at nine retirement homes, according to a CBC News story.

“Hope has certainly been waning,” Jim Carey, president of the Alberta Life Lease Protection Society, told CBC. “We warned government that this was going to escalate and be a really serious problem for hundreds of seniors.”

How did it get this bad?

Under the life lease model, residents paid large lump sums upfront for the right to occupy a unit, expecting to be refunded when they moved out, or passed away, minus a refurbishment fee.

However, a repayment queue begins if more than six per cent of residents terminate their lease at once. As of late 2024, nearly 50 former Bedford Village residents alone were in the queue, with over $17 million owed. Across all Christenson properties, that total is expected to surpass $100 million by this year, according the CBC.

Rapidly growing queues have left seniors waiting two to three years for their money, and new provincial regulations are complicating the company’s ability to pay.

Christenson Group president Greg Christenson warned that recent rules mandating a 9% annual interest on unpaid entrance fees could make refinancing and repayments impossible.

“The resulting strain on cash flow will also lead to insolvency for each property with life lease loans and stop refinancing plans,” Christenson wrote in a letter to residents obtained by CBC.

He told CBC that the interest rate environment, the Alberta real estate market and the demand for seniors’ housing continues to improve.

“So the question isn’t the ability to repay — the question is how long will it take. And we know that people are very stressed, particularly the estates, or the adult children of the seniors who lived in our buildings.”

The biggest roadblock to recovery

The Alberta government now requires housing operators to pay accrued interest if entrance fees aren’t returned within six months. Although these rules are not retroactive, they apply to newer terminations, adding another layer of financial pressure, according to Alberta government regulations.

Government officials have stated they expect Christenson Group to meet its obligations.

"We expect life lease operators to structure their operations in a way that allows them to meet all their contractual and regulatory obligations, including repaying entrance fees to all life leaseholders and paying interest to life leaseholders where there have been unexpected delays in returning entrance fees,” Brandon Aboultaif, a spokesperson for the Alberta government, told CBC.

How developers and residents can avoid this trap

To avoid such distressing scenarios, both property developers and prospective residents should consider the following measures:

1. Enhanced financial oversight: Developers must implement rigorous financial management practices to ensure long-term viability. Regular audits and transparent financial reporting can help detect and address issues before they escalate.

In Canada, the Office of the Superintendent of Financial Institutions (OSFI) emphasizes the importance of robust risk management practices for real estate secured lending, highlighting the need for sound financial oversight to maintain stability in the housing market.

2. Legal protections for residents: Contracts should include clear terms that protect residents’ investments. This may involve setting up escrow accounts or trust funds specifically designated for resident repayments, ensuring that these funds are not commingled with the developer’s operational finances.

In Ontario, the Retirement Homes Act, 2010 mandates that retirement homes have written tenancy agreements detailing the care services, meals and accommodation provided, along with their associated costs, thereby safeguarding residents’ rights and investments.

3. Comprehensive due diligence: Prospective residents should thoroughly investigate a developer’s financial health and track record before entering into agreements.

This includes reviewing financial statements, seeking references from current or past residents and consulting with financial advisors. Understanding the terms of residency agreements, including services provided, fees and policies on care level changes, is crucial for residents to prevent potential abuses or neglect.

4. Regulatory compliance and advocacy: Engaging with industry advocates and adhering to regulatory guidelines can provide additional layers of protection.

In Canada, real estate brokers, sales representatives, and developers are required to implement compliance programs and verify the identity of clients to prevent financial mismanagement and fraud, as outlined by the Financial Transactions and Reports Analysis Centre of Canada (FINTRAC).

Sources

1. CBC: More than 200 Albertans owed hundreds of thousands of dollars for life lease repayment (Feb 12, 2025)

This article An Edmonton property developer owes a whopping $75M to former residents of 9 retirement homes — but 1 big thing could hold the company back from paying. How to avoid a similar nightmareoriginally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

As mortgage rates continue to rise, more homebuyers are entering the market and it’s putting pressure on prices — which could have a long-term impact on future homebuyers.

Between January and February of this year, sales of existing homes rose 4.2% to 4.26 million units on a seasonally adjusted, annualized basis, according to the National Association of Realtors. Meanwhile, home prices are also climbing steadily — the median existing home price reached $398,400 in February, marking a 3.8% increase compared to one year ago ($383,800).

"Home buyers are slowly entering the market," said NAR Chief Economist Lawrence Yun. "Mortgage rates have not changed much, but more inventory and choices are releasing pent-up housing demand."

As indicated by recent market trends, rising housing prices and mortgage rates are increasing the financial pressure on homebuyers and may continue to do so for the foreseeable future.

Why do housing prices keep climbing?

The rise in home prices is likely a result of a resilient job market, persistently low housing inventory and robust buyer demand. Even with mortgage rates hovering in the 6-7% range — which is significantly higher than pre-pandemic levels — buyers remain motivated by fears of even higher prices and lower home inventory in the future.

A report from the U.S. Bureau of Labor Statistics states that total nonfarm employment rose by 151,000 jobs in February, while the unemployment rate remains relatively low at 4.1%. Most economic experts generally consider an unemployment rate between 4% and 5% to be healthy.

As of the end of February, America’s inventory of unsold homes stood at 1.24 million units, which is up more than 5% from January, reports NAR. At the current monthly sales pace, 1.24 million units would be the equivalent of a 3.5 month supply, which is far below the six-month supply that is traditionally considered a balanced market between sellers and buyers.

This tight market puts upward pressure on home prices, with buyers either adjusting their expectations, opting for smaller properties or stretching their finances further to secure homes before prices climb even more.

“We are still in a relatively tight market condition,” Yun shared with CNBC.

Interestingly, first-time homebuyers are entering the market in greater numbers, making up 31% of all sales in February, which is up from 26% the previous year. However, investor purchases have slowed significantly, dropping to just 16% of transactions, which is down from 21% last year.

This shift suggests that more owner-occupants or second-home buyers are competing directly in the market, often with cash purchases, maintaining price stability despite higher borrowing costs.

How could this impact your next real estate purchase?

To navigate this challenging real estate market, buyers may need to adjust their approach, potentially revising expectations regarding home features or considering properties in less competitive markets.

Exploring alternate financing options can provide some relief, but they often come with some drawbacks. Products such as adjustable-rate mortgages, interest-only loans and balloon mortgages can be beneficial in the short term, but they may lead to significant financial challenges if buyers do not fully understand the terms and long-term implications.

Buyers may also find it worthwhile to buy a home now and consider refinancing later if/when mortgage rates drop. Refinancing can lower monthly payments, reduce total interest paid or shorten the loan term. However, buyers should carefully evaluate refinancing costs, including fees and closing costs, to ensure this approach is appropriate based on their financial situation.

Lastly, timing may also play a crucial role. Buyers who can be flexible and wait for traditionally quieter buying periods, such as the fall or winter seasons, might benefit from decreased competition and enhanced negotiating power.

For current homeowners, rising home prices can offer advantages.

"Each one percentage point gain in home price translates into an approximately $350 billion increase in housing equity for American property owners," Yun shared with NAR.

Homeowners selling in the current market may find themselves with increased equity, providing additional cash to leverage toward their next purchase or investment.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

A lot of Canadians are reasonably on edge lately, with US president Donald Trump’s continued talk of annexing Canada and various tit-for-tat tariff threats lobbed back and forth across the border. That tension has been reflected in Canadian businesses, with the Canadian Federation of Independent Business (CFIB)’s Business Barometer crashing to an all-time low in March.

"Small business owners are feeling pessimistic about their business’s perspectives for the next few months or even beyond. It’s hard to make critical decisions for the long, medium or short term when so much can change within a matter of hours," Simon Gaudreault, CFIB’s chief economist and vice-president of research, said in a statement.

"No one knows when the tariff war will end, and businesses are worried the worst is yet to come."

The index dropped 24.8 index points to 25.0, which is a lower mark than at any time during the 2020 pandemic, 2008 financial crisis or even the September 11, 2001 attacks.

How is this tension affecting Canadian small businesses?

To recoup the losses caused by tariffs and the ongoing financial struggles, small businesses plan to raise prices by an average of 3.7%, an increase from 3% in February — the largest month-over-month spike in price increase intentions since the pandemic. Average wage increase plans dropped to 1.9% from 2.2% last month.

Weak small business optimism is also translating into lower hiring plans, with 19% of small firms planning to lay off in the next few months (up from 13% in February), and only 11% looking to hire.

Insufficient demand has been steadily trending upwards since November 2024, reaching a new historical high of 59% of affected small firms in March, eclipsing the pandemic high mark of 53% for this indicator.

Are there regional or sector differences?

Confidence among all sectors also fell, with hospitality (17.0), manufacturing (18.6), transportation (21.0) and agriculture (21.3) at the bottom of the scale. In addition to US tariffs, agriculture businesses are also facing 100% tariffs from China on canola oil, peas and oil cakes as well as 25% tariffs on pork and aquatic products such as lobsters.

This dramatic drop in confidence is being felt across the country, according to CFIB’s survey. All provinces registered a drop in optimism, with the three largest provinces among the most pessimistic: Ontario (23.4), Alberta (24.1) and Quebec (24.9).

"Business confidence is at abysmal levels. If this doesn’t send a strong warning signal to policymakers that businesses urgently need all the help they can get to weather this storm, including a much-improved business environment here in Canada, then I’m not sure what will," said Corinne Pohlmann, CFIB’s executive vice-president of advocacy.

Survey methodology

CFIB’s survey is based on 1,065 responses from a stratified random sample of its members, to a controlled-access web survey from March 5 to 7. Measured on a scale between 0 and 100, an index below 50 means owners expecting their business’s performance to be weaker over the next three or 12 months outnumber those expecting stronger performance.

This article Canadian small businesses’ confidence is at an all-time low amid US trade tensionsoriginally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

About 800,000 Oklahomans depend on Social Security — and they’re wondering how proposed Security Social cuts could impact their retirement.

“Oklahomans want to hear and make sure that Social Security is protected and saved, not only for them, but their children, grandchildren,” Sean Voskuhl, AARP Oklahoma state director, told Oklahoma’s News 4. “More than 22% of Oklahomans rely on Social Security as their primary source of retirement income.”

Now under Trump-appointed leadership, the Social Security Administration (SSA) is eliminating 7,000 jobs, significantly reducing its workforce, while closing several SSA offices across the country.

And that leaves Oklahomans with questions.

“Is Social Security going to be fully funded? Are people going to get their payments on time? And will there be people at the Social Security Administration offices to answer questions if people have them?” said Voskuhl.

The impact of proposed Social Security cuts

This comes at a time when a record number of baby boomers are reaching retirement age — a phenomenon referred to as Peak 65. And 2025 is the “peak” of Peak 65, with a record 4.18 million Americans reaching the traditional retirement age of 65, according to a research report by the Alliance for Lifetime Income’s Retirement Income Institute.

“Unlike older retired baby boomers, the majority of Peak 65’ers don’t have pensions, which used to help fill that gap left by Social Security,” according to the report’s author, Jason Fichtner, executive director of the institute and a former chief economist at the SSA.

That means cuts to the Social Security workforce are coming at a time when demand for its services are at an all-time high. Former Social Security Commissioner Martin O’Malley told CNBC.com that recent actions by Elon Musk’s Department of Government Efficiency (DOGE) are putting the benefit checks of more than 72.5 million Americans at risk.

“Ultimately, you’re going to see the system collapse and an interruption of benefits,” O’Malley said. “I believe you will see that within the next 30 to 90 days.”

Delays could be disastrous for many Americans. In one study, 42% of Americans aged 65-plus said they wouldn’t be able to afford basic necessities like food without their monthly check. For Americans about to retire, staffing cuts and office closures could lead to delays in processing their claims.

At the same time, DOGE — which is helmed by unelected billionaire Elon Musk — is closing 47 local Social Security offices in an effort to save money. Musk has referred to Social Security as “the biggest Ponzi scheme of all time.”

In Oklahoma, a total of 15 federal offices are on the chopping block, including the SSA office in Lawton. These closures will save an estimated $3.7 million, according to DOGE.

How to adjust your retirement savings

From the get-go, Social Security was never meant to be the sole source of a person’s retirement income; rather, it was meant to supplement personal savings and pensions. But an AARP survey found that 20% of Americans aged 50-plus don’t have any retirement savings.

The earlier you start saving, the better — but it’s never too late to start. And that may be more important than ever, with “the imposition of additional tariffs on imports from China, substantial policy uncertainty, sizable pullback in consumer sentiment and spending since the beginning of the year, elevated geopolitical tensions and federal spending reduction initiatives,” according to The Conference Board’s forecast for the U.S. economy.

For those who don’t have a long-term financial plan, it may be worth sitting down with a financial adviser to create a strategy going forward (or to revisit your existing financial plan).

That could include rebalancing into a more diversified mix of investments to include different industries, countries and risk profiles, as well as alternative investments such as real estate or commodities. It could also include mitigating some risk through dividends, in which companies pay distributions to shareholders based on profitability.

Whether you’re saving for the future or close to retirement, you may want to explore your options for bringing in some extra cash, such as taking on a side gig. It may even be worthwhile to reevaluate your retirement plans. Maybe that means working a few more years before retiring, downsizing your home or moving to a less expensive neighborhood or city.

Younger investors have more time to ride out a potential downturn in the economy; those closer to retirement may want to talk to their financial adviser about their options.

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

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

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

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

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

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

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

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

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

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

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

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

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.

This article The best Canadian alternatives to American tourism destinationsoriginally appeared on Money.ca

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.