Good afternoon! Today's stories share one thread: the money moves that matter most are the ones you plan before you're under pressure. Your credit line, your mortgage and even a sudden windfall all hold up better when you've decided what to do ahead of time. Whether rates rise, balances creep up or a big cheque lands, a plan you make today puts you in control.
On The Money Today:
The early sign on your statement that says your financial cushion is thinning
Why your next mortgage payment could depend on a decision coming this month
What sudden money teaches about keeping the money you already have
Let's dive in.
MANAGING MONEY
Canada's debt hits a 10-year high: the Bank of Canada names the biggest warning sign
Credit card arrears have nearly doubled since 2021. About 1 in 8 borrowers is now using more than 80% of their credit limit, and missed payments are at their highest level in more than a decade.
When most of your limit is tied up, there's little room left for a surprise bill, a car repair or a jump in your grocery costs. If your balance has crept up this year, here's what the data shows about where trouble tends to start and the moves that can protect your credit before a missed payment snowballs.
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NEWS
Tiff Macklem signals a possible rate hike as oil pushes inflation to 3%. Here are 6 steps for mortgage holders before October 28
The Bank of Canada held its key rate at 2.25% in September, but its own deliberations show a hike is now on the table. Oil prices pushing inflation to 3% are a big part of the reason, keeping pressure on the central bank to act.
If you have a variable-rate mortgage or a renewal coming up, a hike could change your monthly payment and how much room is left in your budget. This is what's driving the risk and the steps you can take now, before the next announcement on October 28.
MUST READ
What Canada's biggest Lotto Max winners learned about handling a sudden windfall — and how to use it when one lands
A big win can disappear faster than it arrived without a plan. Canada's largest Lotto Max winners have learned a few lessons the hard way about what to do first, who to call and what to hold off on.
You don't need a jackpot to use them. Whether it's an inheritance, a bonus, a severance payout or the proceeds from a home sale, here are 5 lessons that can help you hold on to sudden money and make it last for years.
MONEY IQ
What happens with taxes when you win the lottery in Canada?
ALSO MAKING THE ROUNDS TODAY
NEWS: Canada's Competition Bureau is investigating supplier rules that stop grocers from advertising their lowest prices. Here's how to find the deals that never make the flyer
EMPLOYMENT: Laid off because of tariffs? Ottawa's EI changes let you collect up to $729 a week while keeping your full severance
NEWS: Heading south this winter? The Canadian Snowbird Association says to leave the beer, wine and protein powder at home before you cross the U.S. border
NEWS: Trump says Canada will ask for a deal within weeks, but experts say tariffs and higher prices may stick around. What a longer trade war means for your wallet
MONEY IQ: HOW'D YOU DO?
Answer: C) Lottery winnings are tax-free in Canada. Once you invest that money, though, the interest, dividends and capital gains it earns are taxable, which is one reason winners are encouraged to plan before they spend.
That's a wrap for today! Before you go, we'd love to know what you thought of today's newsletter. Hit REPLY if you have more to share — we read every reply.
