Personal Finance in the News – January 2022:
Welcome to Money News – January 2022, and Happy New Year! This month we look at a variety of personal finance related stories, including increasing CPP (Canada Pension Plan) premiums, tax changes for 2022, new BC real estate assessment data, skipping home inspections, and CEBA (Canada Emergency Business Account) loan extensions.
Read: CPP premiums are on the rise once again and are jumping more than expected. If you’ve noticed higher deductions on your paycheque, this may be partly to blame. The pandemic’s persistent impacts on the labour market are also a contributing factor, and unfortunately those may continue. Going forward, CPP may be increasing payouts to widows and widowers, which would then add further pressure to raise premiums in the future.
Read: CPP premiums aren’t the only government-related impact to your finances this year. In this article, Jamie Golombek summarizes tax changes scheduled for 2022. On the topic of taxes, Jamie has another good read here on why we have to file taxes in the first place. The article also discusses the idea of an automatic tax filing system and simplifying the tax code (one can dream!).
Read & Watch: The latest BC Assessment data points to a record increase in the value of homes across the province. This trend is not confined to BC. Since the start of the pandemic, home prices across Canada have jumped 34%. While this is great news for boomers and those who have been in the real estate market for years, it effectively kills the chances of younger generations even getting into the housing market.
Read: Sticking with housing, the market remains red hot across the country (and in the US too, for that matter). Many prospective home buyers are skipping home inspections to “gain an edge” and lock down real estate amid intense bidding wars – but this is a risky strategy given that a home purchase is often a family’s biggest investment. If something is seriously wrong with the property and needs repair or replacement, it could add hundreds of thousands of dollars to the overall cost of the home – on top of what is likely a staggering mortgage and large down payment in the first place.
Read: Ottawa has extended the repayment deadline for CEBA loans. Employers now have until the end of 2023 to repay these loans. This extension was granted as Canada faces renewed Covid-related restrictions as Omicron surges.
Stay tuned for more Money News next month. In the meantime, check out my latest post on how to beat inflation. Thanks for reading!
Please keep in mind that I am not a financial advisor, and the opinions expressed are my own. My Money Moves does not provide financial advice. It is an informational website that details my own approach to my own money and personal finances. If you need specific financial help or guidance, please do your own research and seek out a professional.