Finance

What’s changing for personal finance in 2025, from capital gains to tax brackets

Published

12 months ago

December 31, 2024

What’s changing for personal finance in 2025, from capital gains to tax brackets

We have reached the end of a year of change, in which our leaders turned their attention from tamping down inflation to spurring a lagging economy. It also saw the federal government releasing a host of new policies, as it prepared for an election in 2025.

We outline some of the biggest changes in personal finance coming in the new year.

Capital-gains inclusion rate

The federal government’s move to raise the capital-gains inclusion rate was the headline policy in its 2024 budget. Canadians will feel its impact for the first time when filing their taxes in 2025.

As of June 25, the capital-gains inclusion rate of 50 per cent for individuals only applies to profits under $250,000. All profits above $250,000 will face a 66.7-per-cent inclusion rate.

Since most Canadians invest in tax-sheltered accounts such as tax-free savings accounts, the majority of people will be shielded from any tax changes. But anyone selling a secondary home or significant non-sheltered investments could pay thousands more in taxes in a given year.

Public dental care opens to all eligible people

The Canadian Dental Care Plan, which helps cover costs at the dentist’s office for Canadians without insurance, started rolling out in 2024 for seniors and people under 18.

In 2025, Ottawa will open the program to the remaining eligible Canadians. Eligibility requirements include a net family income under $90,000, being a Canadian resident for tax purposes, and having filed a tax return in the previous year.

Between 40 per cent and 100 per cent of eligible costs will be covered, depending on income.

Tax bracket adjustments

As inflation slows down, so does the increase in federal tax brackets. All five brackets will rise by 2.7 per cent for 2025, compared with an increase of 4.7 per cent for 2024.

GST holiday and rebate cheques

Two spending incentives unveiled by Ottawa in November will have a large part of their impact in 2025.

First, a federal sales-tax holiday on specific goods that started mid-December will last until Feb. 15. In some provinces, consumers will also be exempt from paying the provincial portion of sales tax. Exempted purchases include restaurant meals, books, beer and wine.

The government also said it would send $250 rebate cheques to Canadians in April. However, that program wasn’t included in the GST holiday legislation or the fall economic statement in December, as the Liberals did not anticipate enough support for the measure in Parliament. The cheques were to be sent to Canadians who worked in 2023 and made under $150,000 in net individual income.

B.C. introduces anti-home-flipping tax

A tax meant to prevent the short-term holding of homes for profit will go into effect on Jan. 1 in British Columbia.

Anyone selling a home that they have owned for less than 730 days will be subject to a 20-per-cent tax on any profit.

The tax is distinct from the federal government’s rules to discourage property flipping, which treat profits as fully taxable on an individual’s income-tax return.

New rules for down payments and mortgages

New mortgage rules will allow Canadians to make smaller down payments on properties valued at more than $1-million. Previously, buyers had to have a down payment of at least 5 per cent for homes valued under $500,000, 10 per cent for every dollar between $500,000 and $1-million, and 20 per cent of every dollar over $1-million.

As of mid-December, buyers now have to have a 5-per-cent down payment up to $500,000, and 10 per cent between $500,000 and $1.5-million. The 20-per-cent minimum now starts at $1.5-million.

Insured mortgages will also be allowed on homes of up to $1.5-million, up from a $1-million cap previously. Insured mortgages come with lower interest rates when purchasing a home with a down payment below 20 per cent, but they require the purchase of an insurance premium that is rolled into the mortgage.

First-time buyers and buyers of new builds will also have access to 30-year mortgages, up from the previous cap of 25 years.

Easing loan access for building secondary suites

The federal government is adding two new ways to make it easier to finance a secondary suite, such as a basement rental unit, for an existing home.

The first is the Canada Secondary Suite Loan Program, which will give homeowners access to a low-cost loan of up to $80,000 to build a suite. It is expected to launch in early January, with 15-year terms and an interest rate of 2 per cent.

Homeowners will now also be able to refinance their insured mortgages if they use the equity to build secondary suites, up to a limit of $2-million. This will allow them to retain the lower rates that come with an insured mortgage when refinancing.

Government sets lower limit on interest rates for lenders

New loans starting from Jan. 1 will be subject to new rules that set the criminal interest rate at 35 per cent, down from the previous threshold of roughly 48 per cent. The government said the change is meant to crack down on high-interest lending from alternative lenders.

Are you a young Canadian with money on your mind? To set yourself up for success and steer clear of costly mistakes, listen to our award-winning Stress Test podcast.

Click to comment

Finance

Plano-Based Finance of America Announces $2.5B Partnership with Funds Managed by Blue Owl to Expand FOA’s Home Equity Lending

Published

7 hours ago

December 12, 2025

Press Room

Plano-Based Finance of America Announces .5B Partnership with Funds Managed by Blue Owl to Expand FOA’s Home Equity Lending

Graham Fleming, CEO of Finance of America [Composite image; source: Finance of America/DI Studio]

Finance of America Companies, a leading provider of home equity-based financing solutions for a modern retirement, and funds managed by Blue Owl Capital, a leading alternative asset manager, announced an enhanced $2.5 billion strategic partnership to accelerate product innovation and distribution for the nation’s fast-growing retirement demographic.

With more than 10,000 Americans entering retirement age every day, the market for home equity access continues to expand. FOA said its collaboration with New York City-based Blue Owl positions it to capture significant share in this rapidly evolving sector.

“This is a pivotal moment not just for Finance of America, but for the senior finance market as a whole,” Graham Fleming, CEO of Finance of America, said in a statement. “By aligning with Blue Owl, we are creating a platform of scale and innovation to better serve one of the fastest-growing demographics in the United States.”

The enhanced partnership includes, per FOA:

$2.5 billion commitment for new product innovation, providing scale and liquidity to support origination growth across multiple asset classes
$50 million equity investment in Finance of America, enhancing long-term alignment between the companies and supporting FOA’s continued growth initiatives
Joint innovation and product-development initiative focused on the continuous rollout of new, differentiated financial products tailored for people looking to maximize freedom, security, and opportunity throughout their retirement

This product expansion will complement FOA’s existing industry-leading reverse mortgage product suite while strengthening the company’s commitment to innovation and its role as a leader in delivering powerful financial solutions for retirees.

FOA said it continues to empower retirees with responsible, flexible access to capital to support aging in place, healthcare expenses, and lifestyle goals.

The partnership reinforces Finance of America’s mission to provide comprehensive, retirement-focused financial solutions, with the goal of expanding beyond reverse mortgages to become the nation’s leading, full-spectrum home equity lending platform, the company said.

“We believe Finance of America is uniquely positioned to redefine how financial products are delivered to retirees,” said David Aidi, senior managing director and co-head of Asset Based Finance at Blue Owl.

“This partnership provides the capital, the strategic alignment, and the innovation engine to build category-defining products at scale,” added Ray Chan, senior managing director and co-head of Asset Based Finance at Blue Owl.

Don’t miss what’s next. Subscribe to Dallas Innovates.

Track Dallas-Fort Worth’s business and innovation landscape with our curated news in your inbox Tuesday-Thursday.

Finance

Bérangère Michel announced as BBC Group Chief Financial Officer

Published

19 hours ago

December 12, 2025

Press Room

Bérangère Michel announced as BBC Group Chief Financial Officer

The BBC has announced that Bérangère Michel has been appointed to the role of Group Chief Financial Officer.

Bérangère brings extensive experience from her 16-year career at the John Lewis Partnership, where she held senior roles including Chief Financial Officer, Customer Service Executive Director, Operations Director and Finance & Strategy Director.

Prior to joining the John Lewis Partnership, Bérangère spent 11 years at the Royal Mail Group in a number of finance, change and strategy roles, including as Finance Director of the property division.

In an expanded role as BBC Group Chief Financial Officer, Bérangère will be responsible for the overall BBC Group financial strategy, with a remit across BBC Public Service, BBC Studios and the BBC’s commercial subsidiaries. She will play a leadership role and will sit on both the Executive Committee and, for the first time, the Board.

This position will strengthen the BBC’s financial leadership, support its transformation, and make the best use of the licence fee and commercial opportunities. Bérangère will report to the Director-General and will take up the role in early January.

Director-General Tim Davie says: “Bérangère brings a wealth of experience from her time at the John Lewis Partnership and will play a critical role in shaping our new financial strategy. I’m pleased to welcome her to the BBC, and to both the Executive Committee and Board.

“Bérangère’s appointment to this expanded role comes at an important time for the BBC, as we look ahead to Charter renewal and continue to accelerate our transformation to deliver outstanding value for our audiences.”

BBC Chair Samir Shah says: “The role of Group Chief Financial Officer will be hugely important as we build a BBC for the future, and I look forward to welcoming Bérangère to the Board.”

Bérangère Michel says: “I am delighted to be joining the BBC, an institution whose purpose and mission I have always admired. It’s a privilege to be part of shaping its exciting future at such a crucial moment and I cannot wait to get started.”

BBC Press Office

Follow for more

Finance

ATI Promotes Longtime Leader to CFO and SVP of Finance

Published

1 day ago

December 11, 2025

Press Room

ATI Promotes Longtime Leader to CFO and SVP of Finance

Rob Foster, incoming CFO of ATI Inc., effective Jan. 1, 2026 [Photo: ATI}

ATI Inc., a Dallas-based manufacturer of high-performance materials for the aerospace and defense industries, announced that James Robert “Rob” Foster will be promoted to senior vice president of finance and chief financial officer, effective January 1, 2026.

Foster succeeds Don Newman, who will serve as strategic advisor to the CEO beginning January 1. As previously announced, Newman will retire on March 1, 2026, and serve in an advisory capacity in that time to allow for a smooth transition.

“Rob is a proven P&L leader with enterprise-wide experience in the areas that matter most to ATI’s continued growth,” Kim Fields, president and CEO, said in a statement. “He brings deep expertise not only in finance but also as an operational leader. Rob played a pivotal role in the successful Specialty Rolled Products transformation, consistently helping ATI to deliver strong returns and shareholder value. I look forward to partnering with him as we enter our next phase of profitable growth.”

Foster, a longtime ATI leader, brings both operational expertise and financial discipline to the CFO role, the company said. He most recently served as president of ATI’s specialty alloys & components business, where he improved efficiency, grew capacity, and advanced the company’s role as a global leader in exotic alloys. Foster previously served as vice president of Finance, Supply Chain, and Capital Projects, overseeing ATI’s global finance organization, capital deployment processes, and enterprise supply chain performance. Earlier in his career, he led Finance for both ATI operating segments and the Forged Products business.

“I’m honored to become ATI’s next CFO,” said Foster. “ATI is well-positioned with a strong balance sheet, focused strategy, and significant opportunities ahead. I look forward to working with our team to drive disciplined investment, operational excellence, and long-term value creation for our shareholders.”

Newman added, “Rob is an exceptional leader who understands ATI’s strategy, operations, and financial drivers. He has delivered transformative results across the organization. I look forward to supporting a seamless transition as we pursue this next step in our succession planning.”

Before joining ATI in 2012, Foster held senior finance roles at API Technologies Corp. and Spectrum Control Inc., where he led ERP implementations, acquisition integrations, and internal control enhancements. He began his career as an auditor at Ernst & Young (EY).

ATI produces high-performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical, and specialty energy.