Good morning. Debt cycles, recession warnings and a bank quietly overcharging its own customers — today's stories make a strong case for keeping a closer eye on your money.
On The Money Today:
More Canadians are becoming millionaires without realizing it — and many are quietly making costly mistakes
The Bank of Canada just issued a recession warning. Your mortgage, job and savings are all in play
BMO was fined $4M for overcharging 100K Canadians. Are you owed a refund?
Let's get into it.
Surging real estate values have turned millions of everyday Canadians into millionaires — but most don't feel wealthy, and for good reason. A $1 million net worth with $900,000 tied up in your home leaves very little to fund a 30-year retirement. Financial researchers are calling them "hidden millionaires" and the mistakes they're making could slowly erode everything they've built.
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The Bank of Canada doesn't cry wolf. So when it modelled a scenario where U.S. tariffs push Canada into a year-long recession, with GDP falling 5% and unemployment rising, Canadians should pay attention. With nearly 60% of Canadian mortgages up for renewal in 2025 and 2026, the timing couldn't be worse. Here's what financial planners say to do right now.
For over a decade, BMO quietly charged monthly fees to more than 101,000 Canadians who should never have paid them. It took 500 complaints and a federal regulator to finally force action. BMO has since refunded $3.03 million — but couldn't reach every affected account, so donated $600,000 to charity instead. Some of that money may still be yours.
MORE FROM MONEY.CA
MANAGING MONEY: Nearly 30% of Canadians earning $100K are still living paycheque to paycheque — Suze Orman's 6-step plan could change that
DEBT: Millennials say they need $100K a year to feel happy — Kevin O'Leary says get a second job
NEWS: Canadian colleges are in crisis — mass layoffs are gutting campuses near you, and students could pay the price
RETIREMENT: She's 59 with $1.2 million saved but no home in her name. Can she afford to leave her husband?
DEBT: A couple's Buy Now Pay Later habit spiralled into a full-blown debt crisis — and their story will sound familiar to a lot of Canadians
That’s it for today. See you soon with another quick roundup of the financial news that matters.