Investment Calculator: How Much to Invest to Reach Your Goals

Knowing how much to invest each month can feel challenging, especially as your life changes. 

You might be wondering whether you’re investing too much and stretching yourself thin or not investing enough to reach your goals. The truth is, the right amount to invest depends on your income, priorities, and where you are in life. There’s no one-size-fits-all approach. 

In this guide, we’ll walk through how much to invest at different stages of life and which accounts are commonly used along the way, so you can feel more confident getting started or adjusting your plan. 

  1. Why Invest Regularly
  2. In your 20s – Early 30s
  3. In Your 30s – 40s
  4. In 40s-50s
  5. In Your 50s-60s
  6. In Retirement
  7. Quick Reference on how much to invest
  8. Bottom Line

Why Invest Regularly

Investing consistently has some clear benefits that support long-term financial goals. It helps you increase your wealth, grow your money through compound interest, supports long-term wealth building, and helps protect your purchasing power as you work towards your financial goals. 

Even small monthly contributions can grow into meaningful wealth over time when you stay consistent. The key is to align your investing with your life stage, whether you’re just starting to invest, raising a family, or planning for retirement, so your investments work for you.

In Your 20s–Early 30s: Build Habits

When you’re new to investing, it can feel overwhelming. There are new terms to learn, different account types to understand, and plenty of advice coming from all directions. The goal at this stage is to start building consistent habits and get comfortable with investing. A good place to start is by deciding how much you can realistically invest each month. Many people aim for around 10–20% of their income, but what matters most is choosing an amount that feels manageable and sustainable for you. Even starting small with $15 or $20 a week can help you build strong habits for the future. If you’re unsure, an advisor can help you think through what the best number is to invest with your income, expenses, and short-term priorities. 

Once you have a comfortable contribution amount in mind, the next step is to open an account and start contributing consistently. Automating your contributions can make this easier, helping you save and invest without having to think about it each month.  

Some common accounts to consider when you’re just starting are; 

  • Tax-Free Savings Account (TFSA): A flexible savings account that can be used for any savings goal, with tax-free growth and withdrawals. Just be sure to stay within your contribution limit. 
  • First Home Savings Account (FHSA): An account for saving towards your first home with tax-deductible contributions and tax-free withdrawals when used to buy a qualifying home. 

If you need help deciding which account makes the most sense for you or want help getting started, our advisors can help. They will provide high-quality personalized advice, tailored to you and your goals. They can even set up automatic contributions for a pay yourself first savings strategy, so investing can become a habit and not a decision.

In Your 30s–40s: Grow Steadily

In your 30s and 40s, people often start focusing more intentionally on growing their savings while balancing other priorities. This stage is often about balancing steady growth with everyday expenses and longer-term goals. If it’s manageable for you, aim to invest 15-25% of your income. Here are some common areas people focus on during this stage of life. 

  • Maximizing your TFSA or RRSP contributions for tax advantages and long-term growth. 
  • Keeping a diversified portfolio of Canadian and global investments is important to manage the market ups and downs and any market volatility. 

Looking for extra ways to invest without feeling the pinch of straining your budget? Put a portion of any raise, bonus or your tax refund towards your investments. If you’re contributing more to an RRSP or FHSA, you could have a higher tax return the following year. 

It’s important to remember that these focus areas can look different for everyone, and they don’t all need to be tackled at once. What matters most is choosing an approach that fits your life today and adjusting as things change. If you’re unsure how these pieces come together, a Mainstreet and Aviso Wealth Advisor can help you talk it through.

In Your 40s–50s: Catch Up and Protect

In your 40s and 50s, many people are in peak earning years, which can make it a key time to strengthen your retirement savings. Keep contributing to your RRSP and TFSA to maximize your retirement savings, and maintain a balanced portfolio to manage risk and the market ups and downs. Our Mainstreet and Aviso Wealth Advisors are here to support you and provide you with the right advice to fit your needs. 

If it’s manageable, contributing 20-30% of your income can make a meaningful difference to your retirement plan. Tax-efficient investing can be even more beneficial if your income is high. 

Don’t forget to review your investments and asset allocations annually to ensure your risk level still aligns with your goals. If you’re unsure how to do that, our Mainstreet and Aviso Wealth Advisors can review your plan with you to make sure you’re on track and can invest with confidence.

In Your 50s–60s: Preserve and Plan

In your 50s and 60s, the focus often shifts to protecting your nest egg and preparing for retirement income. This can include moving into safer assets like term deposits, bonds, and dividend stocks. You’ll need to convert your RRSP into a Registered Retirement Investment Fund (RRIF) by the end of the year that you turn 71, so it’s important to plan for that transition. Tax diversification also becomes more important in your later working years. Balancing your RRSPs, TFSAs, and non-registered accounts can help spread out your tax impact as you move into retirement. 

A key tip is to keep at least a year of living expenses in cash or low-risk investments so you don’t have to sell during market downturns. Continue investing 15-20% of your income until retirement to build a sustainable retirement fund. Our Mainstreet and Aviso Wealth Advisors will work with you to diversify so you can feel confident about your future.

In Retirement: Maintain and Enjoy

After years of saving and planning, retirement is about making your money last while supporting your lifestyle. Focus on stability rather than your growth. This can include RRIF income streams, TFSAs for flexible and tax-free withdrawals, and lower-volatility investments for added peace of mind.  

Planning withdrawals takes some thought, and the right approach depends on your situation. A Mainstreet and Aviso Wealth Advisor can help you structure withdrawals in a way that’s tailored to your needs and supports tax efficiency over time.

Quick Reference: How Much to Invest

Here is a quick guide showing the general percentage of income people often invest at different stages of life. These ranges are meant as a reference point, not a rule.

Life Stage Suggested % of Income Main Goal 
20s–Early 30s 10–20% Build habits 
30s–40s 15–25% Grow wealth 
40s–50s 20–30% Catch up & protect 
50s–60s 15–20% Preserve & plan 
60s+ Varies Maintain income 

Even if you can’t align with these percentages right now, that doesn’t mean you’re off track. Investing looks different for everyone, and the right approach is one that fits your goals, your income, and where you are today.

Bottom Line

Our Mainstreet and Aviso Wealth advisors are here to support you through every life stage, from just starting to preparing for your retirement. If you’re wondering how much to invest, how to save, or how much you need to retire, we’ll help guide you every step of the way. Even small steps today can lead to big results tomorrow. 

Upon booking an appointment, our advisors will help you with your financial goals and set up a plan to fit your retirement goals and invest the right amount in each life stage that works for you.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This article is provided as a general source of information and should not be considered personal investment advice or a solicitation to buy or sell any mutual funds and other securities.

Online Investing vs. Financial Advisors: Which is Right for You?

When it comes to growing your wealth, you have two main options: online investing through a self-directed platform or choosing to work with a wealth advisor. Whether you’re new to investing or a long-time pro, you might be wondering which approach is right for you. 

Do-it-yourself (DIY) platforms like Qtrade Direct Investing® make it simple and affordable to start. While working with a Mainstreet and Aviso Wealth advisor, you’ll receive high-quality personalized advice and flexible solutions that are tailored to you. For first-time investors just starting, extra support from an advisor may be valuable for you.  

In this blog, we’ll compare DIY investing and advisor-led investing, explore the pros and cons of each and help you decide what might be the right fit for you.

DIY Online Investing

If you prefer to have full control of your investments, DIY investing could be a perfect fit. These self-directed investing platforms allow you to manage your portfolio without an investment advisor. At Mainstreet Credit Union, we partner with Qtrade Direct Investing®, one of Canada’s leading online trading platforms. Qtrade® offers self-directed investing with low fees, $0 commission trades, strong research tools, and award-winning customer service. Qtrade® is perfect for investors who want flexibility and independence while staying connected to the credit union. 

With Qtrade Direct Investing®, you can enjoy great perks like: 

  • A simple and easy-to-navigate dashboard 
  • Educational guides and videos so you can learn as you go 
  • In-depth plans to evaluate investing ideas and review your portfolio 
  • Award-winning, friendly client service, just as you expect from a credit union partner 

Compared to advisor investing, DIY investing has several advantages and drawbacks that should be considered: 

Pros: 

  • Low Costs: DIY apps tend to have lower fees and minimums compared to advice-based investing 
  • Smaller Barrier to Entry: Easy to start and automate your investments 
  • Learning Experience: Build your knowledge by managing your own portfolio 
  • Stay Connected: Stay within the credit union with a DIY investing app that shares the same values as Mainstreet 

Cons: 

  • Limited Personal Advice: You won’t get personalized and tailored advice 
  • Emotional decisions: Panic selling, or impulse decisions, are harder to navigate without expert support 
  • Accountability: You’re responsible for your own investments, whether they’re successful or not. 

If you’re confident in your research, decisions, and investing abilities, DIY investing might be the right fit for you. It gives you independence, flexibility and a chance to learn as you go. Plus, Qtrade Direct Investing® keeps things simple and affordable while staying connected to the credit union values.

Advice-Based Investing

If you prefer a more hands-on partner approach, working with a Mainstreet and Aviso Wealth Advisor or what some call advice-based investing, could be best for you. It‘s best for people who want expert advice, guidance, and a long-term financial plan built around their financial goals. Unlike DIY investing, you’ll have a human-to-human experience and someone to help you stay on track. 

Working with an advisor, like many other professionals, comes with a cost. Fees can range in type depending on the financial institution you work with. While this can be viewed as a disadvantage to some, the value and expertise that an advisor can provide can far outweigh the expense. 

Here are the pros and cons of working with a financial advisor:

Pros 

  • Clear Financial Goals: Advisors help you define your financial goals, a path to get you there and how to achieve them 
  • Financial Literacy: Our Mainstreet and Aviso Wealth Advisors can educate you so you can make informed decisions and avoid common mistakes 
  • Comprehensive Planning: Financial advisors often offer additional planning, retirement strategies, tax planning and estate planning – all included in the fees charged 
  • Increased Performance: Studies show people who work with a financial advisor often build more wealth over time  
  • Optimism in Your Future: 60% of Canadians who work with a qualified financial professional report feeling more optimistic and secure about their financial future year over year 

Cons: 

  • Management Fees: Fees are typically higher than online investing or robo-advisor platforms 
  • Quality Variance: It’s important to gather advisor credentials and experience to ensure the advice you’re receiving is accurate 
  • Wrong Fit: Not every advisor aligns with your style or priorities 

Our Mainstreet and Aviso Wealth Advisors offer high-quality personalized advice, flexible solutions and ongoing support. Our advisors make investing easy and responsive, tailoring your financial plan to your goals, risk tolerance and life events. 

Comparing DIY Investing vs Advisor-Based Investing

When you look at the differences between DIY investing and advisor-based investing, investors working with a financial advisor typically see higher net returns over time. That’s often because DIY investing can be affected by emotional reactions, lack of diversification, poor timing and tax inefficiencies, which can lead to underperformance. 

Advisor-assisted investing typically delivers higher returns not because the advisor picks better investments, but because they help you stay disciplined, manage risk more effectively, optimize task and follow a consistent long-term strategy.

What’s Right for You

So, which approach is best for you? It really depends on your comfort level and goals. If you feel confident in your investing ability and want to keep costs low, DIY investing through Qtrade Direct Investing® could be a great fit. You’ll enjoy flexibility, independence and a chance to learn as you go. 

On the other hand, if you’re looking for high-quality personalized advice, a financial plan tailored to your life and your goals, with more strategic planning, a financial advisor may be the better choice. 

If you’re still unsure what is right for you, our Mainstreet and Aviso Wealth Advisors are here to help. We can help choose the best approach for you. 

If you’re ready to get started with advice-based investing, book an appointment with one of our Mainstreet and Aviso Wealth Advisors. If you’re ready to start investing on your own, open a Qtrade Direct Investing® account today.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax, or similar matters.

How to Save Money: Saving vs. Investing and Why You Need Both

When it comes to how to save money, it’s easy to think that saving and investing are the same thing, but they each serve a different purpose. Each plays a distinct role in helping you achieve your financial goals. Understanding how they work together can make a major difference in achieving your short and long-term financial goals. 

In this guide, you’ll learn the differences between saving and investing, how to use both effectively and why they’re essential for your financial well-being. Plus, discover how our Mainstreet and Aviso Wealth Advisors are here to support you throughout your entire saving and investing journey with high-quality personalized advice and flexible solutions to help you save with confidence.

What Is Saving? 

Saving means setting aside money in a safe and accessible place for when you need it. You’ll rely on your savings for short-term goals, emergencies, or unexpected expenses. Before you start investing, it’s essential to establish a strong savings foundation. Saving gives you peace of mind and financial security so you can invest confidently later. If you’re wondering how to save money effectively, starting with a dedicated savings account is the first step.

Key Features of Saving

  • High Liquidity: A savings account gives you quick access to funds, which makes it ideal for emergencies or upcoming purchases. Just remember, GICs are less flexible unless they are cashable or redeemable.  
  • Lower Returns: Because saving is low risk, the potential return is also modest. In most cases, interest earned on savings doesn’t keep pace with inflation,  though some GICs may keep pace with inflation, depending on their interest rate.  
  • Short-Term Focus: Saving works best for goals you’ll need money for soon (in 1 to 3 years), such as an emergency fund, a vacation, or a home down payment.

Common Saving Vehicles

  1. Regular Savings Accounts: Easy to open and access at most Canadian banks or credit unions. 
  1. High-Interest Savings Accounts (HISAs): These accounts offer higher rates than regular accounts, though they may have withdrawal limits or transaction fees. 
  1. Guaranteed Investment Certificates (GICs): Provide a fixed rate of return over a set term. Longer-term GICs often offer higher rates, but the funds are locked in until maturity unless you choose cashable or redeemable GICs.

Why Saving Is Essential

Even though returns are modest, saving is the foundation of any financial plan. Here’s why: 

  • You Need Liquidity: Emergencies happen, and you may need access to cash without selling investments at a loss. 
  • You Want Stability: When your goal is less than a few years away, keeping the money safe matters more than chasing returns. 
  • You Build Good Habits: Saving regularly creates financial habits that last a lifetime. 
  • You Establish a Base: A solid savings cushion gives you confidence to start investing without fearing short-term shocks. 

If you’re wondering how to save money effectively, a Mainstreet and Aviso Wealth Advisor can help you create a plan that fits your life. Our advisors will work with you to build a investment plan, help you reach your savings goal and guide you on the path to investing.

What Is Investing?

Investing means putting your money into assets like stocks, bonds, exchange-traded funds (ETFs), and mutual funds, to grow your wealth over time. Unlike saving, investing involves market risk but potentially offers a much higher return over the long term. If you’ve ever wondered about the difference between saving and investing, saving protects your money while investing helps it grow.

Key Features of Investing

  • Higher Potential Returns (and Higher Risk): When you invest, values can fluctuate, but over the long term, they tend to grow faster than in a savings account. 
  • Longer Time Horizon: Investing works best when you give it time. Remember, time in the market often beats timing the market. Staying invested for several years allows time to recover from any market downturns and benefit from compounding. 
  • Inflation Protection: Savings accounts often lose ground to inflation, but investing can help your money grow faster than inflation over the long term, preserving your purchasing power.

Popular Investment Options

  • Mutual Funds: Professionally managed portfolios that pool money from many investors.  
  • Stocks and ETFs: Represent ownership in companies or a basket of companies. 
  • Bonds: Fixed-income investments that pay regular interest and return your principal at maturity.

Investing Accounts

Investors typically hold investments through these main account types: 

Why Investing Is Important

Saving alone rarely builds enough wealth for big goals like retirement. That’s where investing comes in; it gives your money the chance to grow meaningfully over time. 

  • It helps you to reach long-term goals like retirement or education. 
  • You benefit from compounding, where your investment earnings generate more earnings. 
  • With time and diversification, you can reduce overall risk while maintaining higher growth potential. 

If you’re ready to start investing, our Mainstreet and Aviso Wealth Advisors are here to support you in reaching your investment goals. Our advisors can help you find the right investment options, accounts and align them with your timeframe and goals.

Saving vs. Investing: A Side-by-Side Comparison

Feature SavingInvesting 
Risk Very low; principal is usually safe Moderate to high; value fluctuates 
Return Low; may not keep up with inflation Potentially higher; can grow significantly over time 
Time Horizon Short-term (1-3 years) Medium to long-term (3+ years) 
Liquidity High; easy access  Varies by product 
Purpose safety and short-term goals Build wealth and reach long-term goals 
Example Products Savings accounts, HSAs, GICs Stocks, ETFs, mutual funds, bonds 
Inflation Protection Limited Better protection over time. 

This comparison shows that saving vs investing are not rivals; they’re actually complementary tools for different financial purposes. Both are important in your financial journey.

Why You Need Both

You might wonder why you need both. The truth is, savings vs investing isn’t about choosing one or the other; it’s about using them together. Saving ensures security with quick access to cash, while investing focuses on long-term growth. 

Your savings should cover short-term goals and an emergency fund (typically 3-6 months of expenses) to protect you from unexpected expenses or job loss. It’s a crucial step to your financial foundation.  

Long-term goals like retirement or funding your children’s education call for investing. Long-term market growth has historically outperformed saving rates and helps you build substantial wealth over time. 

Combining saving and investing creates a well-rounded financial plan. Your savings provide stability and liquidity, while investments provide growth for future goals. Having both will give you confidence to succeed and stay on track with your goals, even during market downturns. 

If you’re unsure whether to save or invest, our Mainstreet and Aviso Wealth Advisors will guide you in a way that fits your goals.

How to Combine Saving and Investing

Wondering how to save money while still investing for the future? Here is a simple step-by-step approach.

1. Define Your Goals and Timelines:

Ask yourself: What am I saving or investing for, and when will I need the money? 

  • Under 3 years: Saving goal (vacation, car, wedding, home down payment). 
  • 3 to 10 years: Consider moderate-risk investing (balanced or conservative portfolio). 
  • Over 10 years: Long-term investing (growth-oriented portfolio). 

2. Build Your Emergency Fund 

The next step is to set up a separate high-interest savings account for your emergency fund. For seamless transfers and regular contributions to your account, automate transfers every payday.

3. Make Use of Registered Accounts

Leverage investment accounts such as a TFSA, FHSA, RRSP or RESP to maximize your growth potential and take advantage of what each investment account has to offer.

4. Match Risk to Timeline

Choose your investment mix based on how soon you’ll need the money. 

  • Short-term (less than 3 years): Stick to savings, HISAs, or GICs. 
  • Medium-term (3–10 years): Consider balanced or conservative portfolios (ETFs or mutual funds with a mix of stocks and bonds). 
  • Long-term (10+ years): Growth-focused portfolios (higher equity exposure, diversified globally).

5. Automate and Stay Consistent

Set up automatic contributions to both savings and investment accounts. The “pay yourself first” strategy removes emotion from financial decisions and builds wealth consistently.

6. Review Regularly

Check your savings and investment balances at least once a year. Make adjustments if your goals or risk tolerance change.

Common Mistakes to Avoid

  1. Saving Only: While saving feels safe, it rarely builds enough wealth to meet big goals. 
  2. Skipping an Emergency Fund: Don’t invest everything. If an unexpected expense hits, you may be forced to sell investments at a bad time.  
  3. Using the Wrong Account: Always match your account to your goal and timeline.  
  4. Ignoring Inflation: Low-interest savings accounts often don’t keep up with inflation.  
  5. Not Reviewing Your Plan: Markets change, interest rates shift, and life circumstances evolve. Failing to review your strategy can lead to missed opportunities or unnecessary risk.

How to Balance Saving and Investing by Life Stage

Your balance between saving vs investing will naturally shift as you age and your priorities change.  

  • 20s: Build your emergency fund first, then start investing early. Time and compounding work best when you start early. 
  • 30s: Start contributing more to your investments while maintaining your short-term savings.  
  • 40s and 50s: Continue to invest for growth but diversify and optimize. However, don’t forget about risk reduction as retirement nears. 
  • 60s and beyond: Focus on preserving your investments with a more conservative approach. The goal is to maintain your wealth, ensuring a reliable income in retirement. 

Not sure where to start? Our wealth advisors are here to help. They’ll understand your needs, goals and timeframe to create a plan that fits your life stage.

Why “Saving vs. Investing” Is the Wrong Question

Saving vs investing are not competitors. Saving protects what you already have, while investing helps you build more over time. Together, they provide both security and growth. 

It’s not about choosing one over the other; it’s about knowing when and how to use each.

When you combine saving and investing, you create a strong financial foundation that lets you handle life’s surprises while steadily moving toward your long-term goals.  

If you’re wondering how to save money confidently, a Mainstreet and Aviso Wealth Advisor is here to help. Our team will offer personalized advice and flexible solutions so you can save confidently and reach your goals. 

Book an appointment today and start building your financial future with a plan that balances saving and investing.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. Online brokerage services are offered through Qtrade Direct Investing, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax, or similar matters. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing.  Unless otherwise stated, mutual funds, other securities and cash balances are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds and other securities are not guaranteed, their values change frequently and past performance may not be repeated.

What is a Registered Disability Savings Plan (RDSP)?

You deserve the tools that truly support your goals. If you or someone you care for lives with a disability, either visible or invisible, a Registered Disability Savings Plan (RDSP) can be a powerful tool to provide long-term stability. Unlike regular savings accounts, an RDSP is a disability savings plan to help parents, guardians, or individuals save for the future well-being of a person with a disability. 

At Mainstreet Credit Union, we understand planning for the future can feel overwhelming. That’s why we are here to make it easier, offering personalized advice and flexible solutions. In this blog, you’ll learn how an RDSP works, who can open one and how to maximize government contributions and bonds to make the most of your savings.

  1. How do RDSPs work?
  2. Who Can Open an RDSP 
  3. Am I Eligible for Government Grants and Bonds? 
  4. How Will an RDSP Affect My Ontario Disability Support Program? 
  5. How do Withdrawals Work? 
  6. How Can I Set up an RDSP?

How Do RDSPs Work?

A Registered Disability Savings Plan (RDSP) helps you save for the future while allowing you to invest up to $200,000 over the lifetime of the plan on a tax-deferred basis. This means any investment growth inside your RDSP account isn’t taxed until the funds are withdrawn.  

Contributions can be made by you, family members, friends, or others with the plan holder’s written permission. This contribution flexibility makes RDSP contributions a team effort in order to secure financial stability for the beneficiary. 

In addition to your individual contributions, the Government of Canada also has two powerful incentives: 

  • The Canada Disability Savings Grant (CDSG): The Canadian government matches between 100% and 300% of your annual contributions, depending on family income, up to a maximum of $3,500 per year and $70,000 lifetime. 
  • The Canada Disability Savings Bond (CDSB): For low and modest-income families, the government may contribute up to $1,000 per year to your RDSP — even if you don’t make any personal contributions — to a maximum of $20,000 lifetime. 

Simply opening an RDSP account may qualify you for these benefits. Our Mainstreet Aviso Wealth Advisors are here to make sure you can maximize your RDSP and take full advantage of your contributions and Government Incentives. We make the process easy and seamless so you can focus on what matters most. 

Who Can Open an RDSP?

To open an RDSP, the beneficiary must meet these requirements: 

  • Qualify for the Disability Tax Credit (DTC) 
  • Be a Canadian resident at the time the RDSP is opened 
  • Have a valid Social Insurance Number (SIN) 
  • Be under age 60 (unless transferring from another RDSP) 

If the beneficiary is below the age of 18, a parent or legal guardian can open and manage the RDSP on their behalf.  

At Mainstreet, we make opening an RDSP account simple and stress-free. Our advisors are there to help you choose the right investment options for your needs. We’re here to ensure your disability savings plan works for you in the way you prefer.

Am I Eligible for Government Grants and Bonds?

To qualify for the CDSG or CDSB payments, the beneficiary must: 

  • Be under 49 years old 
  • Be a Canadian resident 
  • Have a Social Insurance Number (SIN) 
  • Be eligible for the Disability Tax Credit (DTC) 
  • Have up-to-date income tax returns filed 
  • For beneficiaries under 18, parents or guardians must have filed their tax returns for the past two years and continue to do so annually. 

If you meet the criteria, you can access valuable government contributions that can significantly boost your RDSP account. In combination with your own contributions, these grants and bonds can make a meaningful difference in your long-term financial security.

How will an RDSP affect my Ontario Disability Support Program?

One common concern is whether an RDSP will impact your Ontario Disability Support Program (ODSP) benefits. The good news? Currently, RDSP payments do not affect ODSP eligibility or the amount of income support you receive. 

Our Aviso and Mainstreet Wealth Advisors are here to guide you through these rules to ensure your plan works seamlessly in combination with other support programs.

How Do Withdrawals Work?

Withdrawals from an RDSP are designed to provide long-term benefit. When you are ready to withdraw from your RDSP, there are two main types of payments:  

  • Disability Assistance Payments (DAPs): Flexible withdrawals and can be taken out as they are needed. 
  • Lifetime Disability Assistance Payments (LDAPs): LDAPs are regular, ongoing payments that must begin by the end of the year the beneficiary turns 60.  

The withdrawn funds can include both personal contributions and government grants or bonds. However, only the government and investment growth portions are taxable income for the beneficiary. 

It is important to know the rules: if withdrawals made within 10 years of receiving government contributions, some grants and bonds may need to be repaid. These guidelines are here to ensure your disability savings plan remains focused on your long-term security while offering flexibility. 

Our advisors will work with you to create a withdrawal strategy that works for you and your lifestyle.

How Can I Set Up an RDSP?

Are you ready to set up an RDSP for someone you care about? Setting up an RDSP account is easier than you might think. Our Mainstreet and Aviso Wealth advisors are here to guide you every step of the way, provide personalized advice—from opening your account to creating automatic RDSP contributions that help you maximize the government grants and bonds. 

Book an appointment today and let us help build a strong disability savings plan for yourself or someone you care about.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax, or similar matters.

What is a Registered Retirement Savings Plan (RRSP)?

At Mainstreet, we know managing your money and saving for retirement can feel overwhelming. That’s where we come in. Our Mainstreet and Aviso Wealth Advisors are here to help you build a retirement plan that grows with you – from opening your Registered Retirement Savings Plan (RRSP) to helping you grow your account and then converting it into a Registered Retirement Income Fund (RRIF) in retirement.

What is an RRSP?

An RRSP is a government-registered account designed to help Canadians save for retirement. When you contribute to your RRSP account, those contributions are tax-deductible, and any investment growth inside the RRSP is tax-deferred until you withdraw it.  

Your RRSP can hold a variety of investments such as mutual funds, bonds, GICs, term deposits or cash. Choosing the right mix depends on your goals and risk tolerance. For example, if you’re just beginning your career, your retirement investment strategy would look different compared to someone who is a few years away from retirement. Our advisors are here to help you select the right investments for your goals, timeline and risk with personalized advice that’s unique to you, so you can reach your retirement goals with ease. 

Types of RRSPs

You can choose a few different options when you have an RRSP. Here are the most common ones. 

  • Advisor-led investing: Work with a Mainstreet and Aviso Wealth Advisor to build a personalized financial plan. We’ll help you optimize and grow your finances to reach your retirement goals with confidence. 
  • Self-directed RRSP: Prefer to manage your own investments? With our partner Qtrade Direct Investing®, you can choose and manage your own investments that fit your strategy. 
  • Employer-sponsored RRSP: This is an RRSP plan provided by your employer, where your contributions may be matched by your employer up to a specific rate. This is an effective way to maximize your savings with contributions from you and your employer. 

At Mainstreet, we make it easy and in the way you prefer. Whether you want a hands-on guided approach or prefer to do it yourself, our team is here to make your retirement goals a reality. 

When Can I Start Contributing?

You can start contributing to an RRSP if you are 18 years old or older and have reported income to the Canadian Revenue Agency (CRA). The sooner you start contributing to your RRSP, the better, because starting now allows you to take advantage of the power of compound interest. Even small contributions can grow significantly over time. If you’re unsure how much to contribute, you can try our retirement calculator or book an appointment with a Mainstreet and Aviso Wealth Advisor.

Contribution Limits

There are limits to how much you can contribute to your RRSP or to your spouse’s Spousal RRSP each year. For the 2026 taxation year, the maximum allowable contribution is: $33,810. Your personal contribution room is the lower of: 

  • 18% of the earned income reported on your tax return for the previous year 
  • The government set maximum annual contribution limit for the year 
  • The remaining limit after any employer-sponsored pension plan contribution 
  • You can carry forward unused RRSP contribution room since 1991. 

To find out your exact contribution, as well as your carry-forward contribution room, check your most recent Notice of Assessment from the CRA, or log in to your online account with CRA.

Is There an Annual Deadline to Contribute?

Yes, there is a deadline to receive your RRSP deduction for a specific tax year. To claim a deduction on your 2025 income tax, the deadline to contribute to your RRSP is March 2, 2026. Missing the deadline means waiting until next year to get the tax benefits. You can make contributions anytime during that year, or up to 60 days into the following year. 

Spousal RRSP

Did you know you can contribute to your own RRSP and your spouse’s RRSP? This strategy has a few perks, like reducing your taxable income for the year, enabling income splitting in retirement, which can reduce taxes when you retire.  

If you want to know if contributing to your spouse’s Spousal RRSP is right for you, our Mainstreet and Aviso Wealth Advisors are here to help you decide. They’ll understand your goals and needs to make sure this is the best route for you and your financial picture, all while keeping you and your goals at the forefront.

Special RRSP Programs

The Canadian government also allows you to withdraw from your RRSP for major life goals, such as buying your first home or going back to school.

Home Buyers Plan

With the RRSP Home Buyers’ Plan (HBP), you can withdraw up to $60,000 tax-free from your RRSP account to buy your first home. This means you can take advantage of tax deductions from your RRSP, all while saving for a down payment. However, there is a catch: the amount withdrawn must be repaid over 15 years. Any repayment made to your RRSP will not give you further income deductions. 

To qualify, you must be Canadian, the home must be your principal residence, and you need to be a first-time home buyer. To understand if the HBP is right for you, our advisors can walk you through and understand your goals. They can also help you create a plan to pay back your RRSP with ease.

Lifelong Learners Plan

The Lifelong Learning Plan (LLP) allows you to withdraw up to $20,000 from your RRSP to fund full-time education for yourself or your spouse. Similar to the HBP, this must be repaid without further income deduction over 10 years. If you’re considering using your RRSP for education, our team can help you plan your repayments and keep your retirement on track.

RRSP to RRIF

By the end of the year, when you turn 71, the government requires that you convert your RRSP to an RRIF. You can do this earlier if you want to begin using your RRSP as income. If not, you can contribute to your RRSP account until the year you turn 71.  

If you have a younger spouse and would still like to make RRSP contributions, there are opportunities to contribute to their Spousal RRSP, which can help with income splitting and tax planning. Not sure when to make the switch or how to maximize your retirement income? Our Wealth Advisors can guide you through this transition with high-quality personalized advice to ensure you feel confident in your decisions and that your retirement income is optimized.

How Mainstreet Can Maximize Your RRSP

Our Wealth Management Advisors are here to support you through every stage of retirement planning. Whether you’re just starting out investing, consolidating an employer RRSP with your RRSP or planning your RRIF transition. Here is how we can help: 

  1. Gather your information: We start by understanding your full financial picture. 
  1. Establish goals and objectives: Together, we clarify what matters most to you – from retirement to family support or lifestyle goals. 
  1. Analyze your financial situation: We review your cash flow, debts, investments, assets, and CPP/OAS estimates, providing guidance on the optimal time to take benefits while identifying your financial strengths and opportunities. 
  1. Develop and present your financial plan: You’ll receive a personalized, easy-to-understand plan for reaching your retirement goals. 
  1. Implement the plan: We help you put your plan into action, whether that means adjusting investments, automating savings, or refining strategies. 
  1. Monitor and review frequently: Life changes – and so should your plan. We’ll meet regularly to ensure you stay on track. 

At Mainstreet, we can assist with retirement planning, estate planning, tax strategies, investment planning, risk management, and cash flow management – all free for our members. 

Retirement planning can feel complicated and complex, but you don’t have to navigate it alone. Our Mainstreet and Aviso Wealth Advisors are here to guide you every step of the way. Whether you’re just starting your RRSP, maximizing contributions, or planning your RRIF transition, we’ll help you feel confident about your financial future. 

Book an appointment today, and together we can reach your retirement goals.

Mutual funds are offered through Credential Asset Management Inc. and Qtrade Asset Management (a tradename of Credential Asset Management Inc). Mutual funds and other securities are offered through Qtrade Advisor and Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc.

How to Transfer Your Investments to Mainstreet: A Step-by-Step Guide

Transferring your investments may seem overwhelming or intimidating at first, but at Mainstreet, we make the process easy. In this guide, we’ll walk you through the transfer process and ease your mind when it comes to transferring investments. We’ll explain how the process works and how your Mainstreet and Aviso Wealth Advisor will guide you from start to finish.

Why Transfer Your Investments?

When you move your investments to Aviso Wealth at Mainstreet or another investment product like term deposits, you get high-quality personalized advice backed by flexible solutions. Many people choose to move their investments because they want clearer guidance, fewer accounts to manage, or support that feels more personal and consistent. Whether you’re looking for local service, a more hands-on relationship with your advisor, or an easy and seamless way of investing.  

If you’ve ever felt unsure about how your investments are performing or uncertain about whether your portfolio still reflects your goals, transferring your investments can help bring clarity and a greater sense of control. Our Mainstreet and Aviso Wealth Advisors are here to help you make the most of your money. This gives you support that helps you feel more confident and informed when making financial decisions. 

Consolidating your investments is also a great reason for transferring investments. It makes managing your investments easier and can enhance the benefit of compound growth, ultimately giving you a clearer picture of your overall progress. Having everything in one place also reduces the chances of duplicated investments or overlooked accounts, making your investments easier to manage.

How the Transfer Process Works:

Transferring your investments is more straightforward than many people expect. When you move your investments, our advisors handle most of the work for you, making the process smooth and stress-free. Here is our 5-step guide that outlines what to expect when transferring your investments to Aviso Wealth or another investment product at Mainstreet.

1.Meet with an Aviso Wealth and Mainstreet Wealth Advisor

Start by booking an appointment and meeting with a Mainstreet and Aviso Wealth Advisor. During your meeting, your advisor will get to know you, understand your financial goals and review your current investments. Together, you’ll build a personalized investment plan that aligns with your financial needs and goals.  

This first meeting helps your advisor understand your full financial picture so they can recommend a plan that supports your long-term goals. 

2.Bring a Recent Investment Statement 

When you meet your new advisor, bring a copy of your most recent investment statement from your current financial institution. This includes all your investments you plan to transfer, whether it’s a Registered Retirement Savings Plan (RRSP), a Tax-Free Savings Account (TFSA) or another type of investment account. This helps your advisor understand the investments you currently hold, identify any transfer restrictions, such as locked-in accounts or pending transactions, and ensure a smooth transition.

3.Complete a Transfer Form

Once you’re ready to transfer your investments, your advisor will help you complete a Transfer Authorization Form. This form authorizes your investments to be moved directly from your existing financial institution to Aviso Wealth at Mainstreet. You’ll need to complete a form for each investment account you plan to transfer.

4.We Take Care of the Rest

Once the form is submitted, our wealth team coordinates the transfer on your behalf. There is nothing more you need to do on your end. Most transfers take between 2 and 6 weeks. Timelines vary based on the type of investment account and the financial institution sending the funds. Your advisor will keep you updated if anything is required during this time.

5.Once Your Transfer is Complete

Once your investments arrive at Mainstreet and the process is complete, your advisor will contact you to confirm that the transfer was successful. If you haven’t already discussed how the funds will be invested, your advisor will schedule a follow-up appointment. If this was already discussed, now you are successfully investing!

Why Choose Aviso Wealth at Mainstreet for Your Investments?

At Mainstreet, you’ll always work with a dedicated wealth advisor who knows you, your goals, and your story. To us, you’re not just another account to manage; your advisor gets to know what matters to you and helps you build a plan that reflects that. As a member, you’re also a part-owner of Mainstreet, which means your financial well-being guides everything we do. 

Whatever you’re saving for or working towards, we’re here to help. From retirement planning to getting started, our advisors will work with you to build a plan that supports your financial goals. They take the time to explain your options clearly, answer your questions, and check in as your goals evolve. 

Ready to Make the Move?

Are you ready to transfer your investments to Mainstreet? Book an appointment with one of our Mainstreet and Aviso Wealth Advisors today. You can meet with them online, by phone or at a branch. Our knowledgeable team will help you make the switch with confidence.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes, and it is not intended to provide specific advice including, without limitation, investment, financial, tax, or similar matters.

Beyond the Down Payment: What You Really Need to Budget For

Buying a home is an exciting milestone, but it can quickly become more stressful than expected if you’re not prepared for the additional costs that might pop up during the process. Understanding the additional costs involved allows you to budget smartly and avoid surprises.  

In this guide, we’ll break down the most common expenses, how much they typically cost, and offer tips on how to plan ahead with support from Mainstreet Credit Union. 

What are the additional costs of buying a Home?

  1. Land Transfer Tax 
  1. Legal Fees and Disbursements 
  1. Home Appraisal and Inspection 
  1. Title Insurance 
  1. Moving Costs and Utility Setup 

1. Land Transfer Tax

In Ontario, one of the biggest closing costs you’ll face is the Land Transfer Tax, sometimes called the property transfer tax. This tax is calculated based on the purchase price of your home using a tiered system, where different portions of your home’s purchase price are taxed at different rates, ranging from 0.5% to 2.5%.  

For example, if you buy a $600,000 home in Ontario, the land transfer tax will be approximately $8,475. If you’re buying in Toronto, there’s also a municipal land transfer tax, essentially doubling the amount you pay.  

The good news? In Ontario, first-time homebuyers may qualify for a rebate of up to $4,000 on the provincial tax, which can significantly reduce the cost of your closing fees. To be eligible, you (and your spouse, if applicable) must not have owned a home anywhere in the world before, and you must plan to live in your new home within nine months of purchase.  

To plan ahead, use a land transfer tax calculator to get an estimate based on your purchase price and location.

You’ll need a real estate lawyer to handle the legal side of your home purchase. Your lawyer will review the agreement of purchase and sale, conduct a title search, and handle the registration of your new home with the province.  

Legal fees for buying a house typically range between $1,500 and $2,500. This usually includes the lawyer’s professional fees and disbursements such as title searches, land registration, and courier or document preparation fees. 

Because these costs can vary based on the property, location, and the lawyer you choose, it’s best to request a detailed quote up front so you can budget accordingly. When you work with a Mainstreet advisor, we can help you understand these costs as part of your overall home buying plan and ensure your mortgage financing leaves room for all the expenses you’ll need to cover.

3. Home Appraisal and Inspection

A home appraisal is a professional estimate of a property’s market value conducted by a certified appraiser. It helps protect you and your lender by confirming that the property is worth the loan amount and ensures a fair market value assessment for everyone involved. In Ontario, the cost of home appraisals ranges between $300 and $600, and the buyer is usually responsible for this expense. Your Mainstreet advisor can help arrange the appraisal as part of your mortgage process. 

It’s important not to confuse this with a property assessment, which is done by the Municipal Property Assessment Corporation (MPAC) and used to calculate your annual property taxes. While both affect your costs, they serve different purposes.  

In addition to the appraisal, most buyers also arrange for a home inspection. While optional, a home inspection is strongly recommended before finalizing your purchase. A certified inspector will assess the home’s structure, roof, plumbing, and more. This helps you make an informed decision, negotiate repairs if needed, and avoid costly surprises after you move in. The typical cost of a home inspection ranges from $400 – $700 and is usually completed during the conditional period of your offer.

4. Title Insurance

Title insurance is a one-time cost, usually ranging between $250 and $400, though the exact price can vary based on your home’s value and location. Title insurance protects you and your lender from unexpected issues like title fraud, errors in public records, unpaid liens, or zoning problems that could affect your ownership.  

Most buyers choose a combined policy that covers both themselves and their lender. Your real estate lawyer will usually arrange title insurance for you as part of the closing process, ensuring everything is in place before your purchase is finalized. If any issues arise after your purchase, you will contact the title insurance company (their information will be provided in your closing documents) to start a claim. Your real estate lawyer can also guide you through the process if a problem comes up. 

While it’s separate from costs like property assessments or property taxes, it’s an important part of protecting your investment. Your Mainstreet advisor can help you plan for this one-time cost as part of your overall home-buying budget.

5. Moving Costs and Utility Setup

Don’t forget the final step: moving into your new home. Moving costs can vary based on the distance, size of your move, and the services you choose. If you’re hiring a professional moving company, plan to budget around $1,000 to $2,000 for a local move. For long-distance moves, costs can easily reach $3,000 or more, so it’s important to get a detailed quote in advance and ask what’s included. 

Once you arrive, you’ll need to set up your utilities such as electricity, water, internet, and gas. Expect to pay connection or activation fees, which typically range between $50 and $150 per service. However, some companies may waive the fee if you sign up for multiple services or contracts. If you’re moving from a rental, be sure to budget for cleaning, repair fees, or any overlapping rent if your move-in and move-out dates don’t align. 

A Mainstreet advisor can help you plan for these costs so you can move into your home with confidence. 

How Much Extra Should You Save?

So, how much extra should you save beyond the down payment? A good rule of thumb for Ontario homebuyers is to budget an additional 3–5% of your home’s purchase price for closing costs like taxes, legal fees, and moving expenses. 

Here’s an example for a $600,000 home:  

Cost Category Estimated Cost 
Land Transfer Tax $8,475 
Legal Fees  $2,000 
Title Insurance             $300 
Home Appraisal $500 
Home Inspection $550 
Moving $1,000 
Utility Setup $200 
Total $13,025  

For first-time buyers, rebates like the Ontario Land Transfer Tax refund (up to $4,000) can help bring these costs down. Your actual total will vary based on your purchase price, location, and the services you choose. 

At Mainstreet, we’ll work with you to build a clear home buying budget so you know what to expect and can plan for these expenses with confidence. 

Tips for managing closing costs

Planning for the additional costs of buying a home can help you avoid last-minute surprises and make your move smoother. Here’s how to stay on track:  

  • Ask questions: Your Mainstreet advisor, real estate lawyer, and realtor can help you understand every fee you might encounter, from land transfer tax to legal charges. 
  • Leave a cushion: Moving expenses, utility hookups, and last-minute repairs can add up quickly, so keep some extra room in your budget. 

Our Mainstreet advisors can help you estimate and plan for all of these costs, so your budget stays balanced. 

Ready to Buy? Let’s Plan for Your Home Purchase

At Mainstreet, our advisors will work with you to build a savings plan that covers your down payment and all the additional costs of buying a home, so you can move in with confidence. 

Book an appointment with us today to get started building a customized savings plan that covers everything you need when buying a home, not just your down payment.

How to Set a Savings Goal Using Your FHSA

Thinking about buying your first home? The First Home Savings Account (FHSA) is one of the most effective tools for first-time home buyers to save for their first home. In this blog, you’ll learn how to use your FHSA effectively, including smart ways to combine it with your Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP) to grow your down payment even faster.

  1. How to Set a Savings Goal using your FHSA
  1. Timing your contributions
  1. How you should invest
  1. How to combine FHSA, TFSA & RRSP
  1. Mistakes to Avoid with your FHSA
  1. Book a Savings Plan meeting

How to set a savings goal using your FHSA?

Before you start saving for a home, it’s important to set a clear goal. Without one, it’s easy to lose focus, underestimate how much you’ll need, or feel discouraged by a target that feels out of reach. A goal gives you a roadmap, helping you understand how much you need to save, how long it might take, and what steps you’ll need to take to get there.  

If you’re not familiar with how a First Home Savings Account (FHSA) works, take a moment to read our FHSA guide first. It explains the account, its tax benefits, and why it’s a valuable tool for first-time homebuyers  

When using an FHSA (First Home Savings Account) to save for your first home, start by figuring out the type of home you want and where you’d like to live. That will give you a rough purchase price, which helps determine the down payment you’ll need. 

With an FHSA, you can contribute up to $8,000 annually and a lifetime limit of $40,000. Once you know your savings target, break it down into monthly or weekly contributions to make your goal more manageable. Setting up automatic transfers can help you stay on track without the stress of remembering to contribute, so you don’t have to think about how much you’ll need to contribute throughout the year. 

Here is a breakdown of contributions to reach the annual and lifetime contribution limit:

Purchasing a home in years: To reach the lifetime contribution limit, invest this amount weekly: To reach the lifetime contribution limit, invest this amount monthly: 
5 years $153.84 $666.66 
10 years $76.92 $333.33 
15 years $51.28 $222.22 

Need help getting started? We can help you create a customized savings plan that fits your home-buying timeline and financial goals. With advice tailored to you and your goals, we make saving for your first home simple and stress-free.

Timing Your Contributions for Maximum Impact

If you’re able to contribute the full $8,000 FHSA annual limit at the start of the year, it gives your money more time to grow tax-free. But even if you can’t contribute the full amount right away, every dollar you contribute still helps towards buying your first home and benefits from tax-free growth. 

It’s important to start when you can, even with a smaller amount. Opening an FHSA now means your contribution room begins to accumulate, and any unused contribution room carries over for one year. So even if you know you’ll have more funds available next year, it’s still worth getting started today. 

Let’s compare maximum contribution scenarios and see the differences: 

  • Contributing $8,000 annually at the beginning of every year for 5 years at a 5% return*, your savings will grow to $45,064 with $5,064 in tax-free savings 
  • If you invested $666.66 monthly for 5 years at the same return, you’ll have $44,264, and $4,264 is tax-free growth.  

*The rate of return is used only to illustrate the effects of the compound growth rate and is not intended to reflect future values or returns on investment. 

While contributing early and the total maximum amount may generate more growth, you can still make meaningful progress in other ways. Consistent contributions that fit your personal goals and needs will allow you to save for your new home at your own pace. Our Mainstreet advisors will work with you to create a strategy tailored to you and your goals.

How Should You Invest in Your FHSA?

You can hold a variety of different types of investments in your FHSA, so it’s essential to understand the available options to find the right fit for your goals. Choosing the right investment depends on your timeline, comfort level, and homebuying goals. Each investment has unique benefits and risk levels. Here they are broken down: 

High Interest Savings Account: If you plan on buying a house in 1-2 years, a high-interest Savings Account (HISA) offers flexibility. While it may pay lower interest, the funds are available to take out immediately. Ideal for short-term plans. 

Term Deposits: If your timeline is a longer term, consider a term deposit, also known as a Guaranteed Investment Certificate (GIC). These typically earn more interest than a HISA and lock your rate in for a set period. If your GIC hasn’t matured when you’re ready to buy a home, don’t worry, our Mainstreet advisors will work with you to find a solution to use your FHSA. 

Mutual Funds: These investments pool money from many investors to create a diversified portfolio. Mutual funds are a collection of stocks, bonds, or other assets. They’re ideal for a wide range of investors who want a diverse portfolio without picking individual investments. 

If you’re still unsure, our advisors will provide personalized advice that fits your needs, risk, and goals. No matter what, your earnings will grow tax-free inside your FHSA.

How to combine FHSA + TFSA + RRSP Home Buyers’ Plan

You can boost your down payment by combining your FHSA with other savings tools like the Home Buyers Plan (HBP) and your Tax-Free Savings Account (TFSA).  

The Home Buyers’ Plan (HBP) allows you to withdraw up to $60,000 from your RRSP tax-free to put toward your first home. For example, let’s say you have $40,000 in your FHSA and a further $60,000 in your RRSP; you can use the entire $100,000 towards your home purchase. Just remember, withdrawals from your RRSP for the HBP require you to pay it back over 15 years. If your partner is also eligible for the HBP, they too can use up to $60,000 from their RRSP along with their TFSA or other savings for a downpayment.  

Your TFSA can be another powerful piece to help you save for a down payment. While you don’t receive the benefit of a TFSA contribution coming off your income for the year, you do benefit from tax-free growth. Therefore, if you have fully used up your contribution room for your FHSA and RRSP, you can still save more funds in a TFSA and benefit from the tax-free growth that you can withdraw to use towards your down payment. 

If you’re not sure which combination works best for you, our Mainstreet advisors will work with you to look at your combined investments and review your finances to ensure you make the right choice when you are ready to buy a home.

Mistakes to Avoid When Using Your FHSA

Using your FHSA effectively means avoiding some common missteps that could cost you in the future. Here are some common mistakes to avoid: 

Overcontributing: If you go over your annual or lifetime contribution limit, you could face a 1% penalty tax per month on the excess amount for as long as it stays in your account. Be sure to track your contributions and stay within the limits.  

Not taking full advantage of your $8,000 contribution room: If you’re able, try to contribute the maximum, especially since you can only carry unused contribution room for one year. This will also help you on your tax return when you file your income taxes.  

Don’t be afraid to open your FHSA before you start contributing. Once you do this, it will allow you to contribute more the following year because of the previous year’s unused contribution room. 

Make sure you qualify before opening your First Home Savings Account: To qualify for an FHSA you must: 

  • Be a Canadian Resident 
  • Be 18 years old (or the age of majority in your Province/Territory) 
  • 71 years or younger 
  • Have not owned a home in the current year or the previous 4 calendar years.

Misunderstanding FHSA withdrawal rules: To use the FHSA, you must be purchasing a qualifying home in Canada.  

  • Single-family homes 
  • Semi-detached homes 
  • Townhouses 
  • Mobile homes 
  • Condominium units 
  • Apartments in duplexes, triplexes, fourplexes, or apartment buildings 
  • A share in a co-operative housing corporation that entitles you to own and gives you an equity interest in a housing unit 
  • The home must be your principal residence 
  • You must have a written agreement to buy or build a qualifying home before October 1 of the year following the date of withdrawal 
  • You must not have acquired a home more than 30 days before making the withdrawal. 

Our advisors will work with you to explain all the details of an FHSA, with clear explanations whenever you need. We’ll ensure you understand the rules and use your FHSA with confidence.

Book a Savings Plan Appointment

At Mainstreet, we’re here to help you make the most of your FHSA and feel confident about your first home purchase. Our advisors can guide you through your options, create a plan that fits your budget and timeline, and show you how to maximize your savings along the way. 

Saving for a home can feel overwhelming, but it doesn’t have to. We’ll work with you—whether in person, by phone, or online—to create a straightforward plan that makes your goal more attainable. 

Ready to take the next step? Book an appointment with a Mainstreet advisor today and start building your path to homeownership.

Mutual funds and other securities are offered through Aviso Wealth, a division of Aviso Financial Inc. The information contained in this article was obtained from sources believed to be reliable; however, we cannot guarantee that it is accurate or complete. This material is for informational and educational purposes and it is not intended to provide specific advice including, without limitation, investment, financial, tax or similar matters.

Budgeting, Saving, and Planning for Your Future

Graduation is a big milestone – congratulations! As exciting as it is to step into a new chapter, it’s also when your financial responsibilities start to grow. Whether you’re managing student loans, working your first full-time job, or trying to figure out how to budget, now’s the perfect time to create a financial plan that works for you. 

Not sure where to start? We’ve put together some practical tips to help you feel more confident with your money, whether you want to save, pay down debt, or build credit. Your financial future starts here.

Where Do I Start with My Money After Graduation?

A good first step after school is to get a clear picture of your finances. What do you owe? What income do you have coming in from work or other sources? This helps you figure out what to focus on; maybe that’s debt repayment, savings, or just covering your daily costs. 

Creating a simple monthly budget is a great way to start. Track your income and expenses to see where your money’s going, and where you might be able to cut back or redirect funds toward your goals. 

Your financial plan doesn’t need to be perfect; it just needs to reflect your priorities. Think of it as a guide that helps you make confident choices with your money.

How Do I Make a Budget That Works?

Once you’ve taken stock of your income and expenses, the next step is building a budget that works for you. A budget helps you stay organized, avoid overspending, and make steady progress toward your financial goals. 

You don’t need anything fancy to get started—just a clear view of your money in and money out. 

Here’s a simple way to build your first budget: 

  • Write down what you earn each month from your job, side gigs, or support payments. 
  • List out your fixed expenses, like rent, phone bills, transportation, or loan payments. 
  • Estimate your variable expenses, like groceries, eating out, or entertainment. 
  • Set a small amount aside for savings, even $10 a week is a great start. 
  • Track your spending so you can adjust and improve over time. 

You can use a spreadsheet, a budgeting app, or even pen and paper – whatever works for you. And if you’d like a second set of eyes, talk to a Mainstreet advisor. We can help you create a budget that fits your goals and your lifestyle.

Should I Pay Off Debt or Start Saving First?

When you’re starting out, it’s normal to wonder if you should save or focus on paying down debt first. The good news is you don’t have to pick just one, you can work on both, even in small ways. 

If you’re carrying high-interest debt, like credit cards or some student loans, it’s a good idea to make that your first priority. Interest adds up quickly, so putting extra toward those payments when you can will help you pay less overall. 

At the same time, try to build a small savings cushion. Even putting aside a few dollars a week can help you avoid using credit when something unexpected comes up, like a flat tire or a last-minute expense. It’s less about the amount and more about getting into the habit. 

Every financial plan looks a little different, and your priorities may shift over time. If you’re not sure what to focus on first, connect with a Mainstreet advisor who can help you build a plan that fits your life and goals.

How Do I Start Saving with Limited Income?

Saving on a tight income can feel impossible, but small steps really do add up. With the right habits, you can start building savings without needing a big paycheque. 

Here are a few ways to start saving on any budget: 

  • Pay yourself first. Set up an automatic transfer to savings as soon as you get paid. Even $10 or $25 a paycheque builds up over time. 
  • Track your spending. Take a closer look at where your money is going. Are there subscriptions you don’t use, or small purchases that add up? Cutting back even a little can help you create more space for savings. 
  • Use employer benefits. If your job offers a group savings plan or match, try to take advantage of it. It’s one of the easiest ways to boost your savings without noticing the money is gone. 
  • Choose the right accounts. A no fee chequing account can help you avoid unnecessary costs and keep more of your money working toward your financial goals. 
  • Get advice you can trust. Mainstreet’s team can help you build a budget, plan your savings, and make sure your financial plan fits your life.

How Do I Start Building Credit?

Building credit might feel intimidating at first, but it’s an important part of your financial plan. A strong credit score can help you qualify for a loan down the road, sign up for a phone plan, or even rent your first apartment. 

Credit cards are one of the most common tools for building credit, but they’re not the only option. Whether you’re ready for your first card or looking for other ways to get started, here are a few tips to help you build your credit history responsibly. 

If you’re using a credit card: 

  • Choose a student-friendly or low-fee card with benefits that match your lifestyle—like cash back or purchase protection. 
  • Make your payments on time, every time. Even small purchases help your credit if you pay them off each month. Set up auto-pay or reminders to avoid missing a due date. 
  • Keep your balance low. Try not to use more than 30% of your credit limit to show lenders you’re managing credit well. 
  • Use your card’s mobile app to track spending and make payments on the go. 

Want to understand the basics first? Check out our blog: Understanding How Credit Cards Work to learn more about how interest, limits, and payments affect your credit.

Other ways to build credit: 

Make your student loan payments on time. If you have an OSAP loan or other student loan, your repayment history is reported to credit bureaus and can help your score. 

Pay your phone bill in full and on time. Some cell phone providers report to credit bureaus, so staying current on your bill matters. 

Consider a secured credit card if you’re just starting out. It works like a regular credit card but requires a small deposit, making it easier to get approved with limited or no credit history. 

What to avoid when building credit: 

When you’re starting out with credit, mistakes can be easy to make, and they can hurt your score more than you might expect. Here are a few things to watch out for: 

Only making the minimum payment. It keeps your account in good standing, but you’ll end up paying a lot of interest. Try to pay your full balance each month if you can. 

Missing a payment. Even one missed payment can lower your credit score. Set up auto-pay or reminders to help you stay on top of due dates. 

Maxing out your credit limit. Using too much of your available credit at once can hurt your score, even if you pay it off later. 

Applying for multiple credit cards at once. Too many credit checks in a short time can be a red flag for lenders. 

Co-signing for someone else’s loan or credit card. If they miss payments, it affects your credit too—so make sure you’re prepared for that responsibility. 

Not sure what’s right for you? Talk to a Mainstreet advisor before you apply. We’re here to help you make confident choices. 

Which Banking Products Are Right for Me?

The right bank account or credit card can make managing your money a lot easier and save you money in the process. As you start budgeting and building your financial plan, look for products that fit your lifestyle and help you avoid unnecessary fees. 

When comparing chequing or savings accounts, look for ones that: 

  • Don’t charge monthly fees (or waive them for students or young adults) 
  • Offer convenient online and mobile banking tools 
  • Give you access to a large ATM network, so you’re not paying out-of-network fees 

A no fee chequing account is a great way to stay in control of your money without added costs. Mainstreet offers student-friendly banking options that are simple, flexible, and designed to grow with you. 

When choosing a credit card: 
• Start with one that has no annual fee or a low interest rate 
• Look for perks that match your spending habits, like cash back or purchase protection 
• Choose a card with an easy-to-use app so you can track spending and make payments anytime 

Mainstreet Credit Union offers credit cards that are designed to help you build credit while keeping things affordable. With tools like spending alerts, online account access, and helpful rewards, you can stay on top of your finances and work toward your goals—without paying more than you need to.

Ready to Get Started?

Taking control of your finances after graduation might feel like a lot, but you don’t have to do it alone. Whether you’re building your first budget, figuring out how to repay student loans, or looking for the right account or credit card, Mainstreet is here to help. 

Book a free financial planning session with one of our advisors to get advice that’s tailored to your goals and your life. You can meet with us in person, online, or over the phone – whatever works best for you. It’s completely free, and it’s designed to help you move forward with confidence. 

Book your free session today and take the first step toward building your financial future.

Common Scams and How to Prevent Them

In 2024, Canadians lost over $638 million to scams, a staggering figure that highlights how important it is to protect your finances. Staying informed and alert is one of the most effective ways to protect your finances and your financial health. 

At Mainstreet, we know fraud is a sensitive and serious topic. That’s why we’ve put together this guide to explain the most common fraud scams, how Mainstreet keeps you safe, and the practical steps you can take to stay safe. Our team is here to provide you with responsive advice and is committed to your financial well-being. 

Most Common Scams

Scams can vary depending on your region, age, or local market conditions. Across Ontario, certain types of fraud are common and continue to affect individuals and families. At Mainstreet, our focus is on keeping you informed and prepared. By sharing the warning and indicators of fraud along with prevention tips, we can help you spot risks early, because your financial safety matters to us. 

1. Card Not Present

As online shopping becomes more popular, so does the risk of card-not-present scams. These scams occur when your card information has been stolen or skimmed from a website, other platform, or data breach. It is always important to ensure the website you shop at is legitimate and secure before entering your payment information.  

How it Works

Scammers will steal your card information from compromised websites or platforms and use it to make purchases without needing the physical card. This fraud can occur silently and often goes unnoticed at first, which is why prevention is even more important.

How to Stay Safe

The best way to prevent this scam is to be vigilant about where you use your card online. Only use your debit or credit card on websites that you’re familiar with and never use your card on websites that you do not trust. If you land on a website that looks fake or the business looks too good to be true, it likely is. Its main purpose is to steal your card information. 

Here are a few ways to protect yourself 

  • Use your debit or credit card only on trusted, reputable websites. 
  • Do not save your card information as a form of payment on websites. 
  • Check the seller’s reputation via review or a third-party website such as Trustpilot. 
  • Look for a secure padlock- most website browsers display a padlock in the URL field to indicate a website is safe.
  • Monitor your chequing, savings, and credit card accounts regularly so you can quickly spot suspicious behaviour. 

If you notice any unauthorized transactions on your account, contact Mainstreet immediately. Our team can disable your card and gather the necessary information to begin an investigation. Ultimately, our goal is to recover the funds for you, wherever possible.

2. Investment Scams

Investment scams often promise high returns or quick profits but fail to deliver. They will often ask you to invest in non-traditional investment channels such as cryptocurrency, pyramid schemes, or fake or real celebrity endorsements. While the offer may sound exciting, they are often too good to be true.

How it Works

Victims are contacted by bad actors pretending to be part of an investment company. Often, the ‘investment companies’ use cryptocurrency platforms as a front. They convince victims that there is money in their crypto wallet, but before you can “access it,” they will request an e-transfer or wire to the investment company before releasing the funds. Once the money is sent, it’s gone. 

How to Stay Safe

You should never have to send money to receive money from your investment. The old saying rings true ‘If it sounds too good to be true, it probably is. 

There are several ways you can keep yourself safe from investment scams.  

  • You should never send money to receive an investment return. 
  • It is important to always verify who you are dealing with. If you cannot find reliable information on the person or company that is asking you to invest, they are likely not a trustworthy company.  
  • Do not give out information on unsolicited calls.  
  • Don’t be afraid to say no. 
  • Talk to someone you trust and who has your best interests in mind. 

If you receive an unsolicited investment offer that you’re unsure about, you can always reach out to your Mainstreet advisor to help you determine the validity of the offer.

3. Romance Scams

Love can be blind – and scammers know it. Bad actors will engage in emotional manipulation by pretending to form a romantic connection online. Once trust is built, the romance scammers will exploit it, often leaving the victims financially hurt and emotionally shaken. 

How it Works

Scammers will connect with victims through dating websites, apps, or social media. They build convincing profiles using stolen photos and fabricated personal details. Over time, sometimes weeks, months, or even years, they will create a bond with the victim. 

Once a relationship and trust have been established, the scammer will ask for money. They will request money for various reasons, such as legal, travel, medical, or emergency expenses. Requests might begin with smaller amounts but usually grow larger as time goes on. Because the relationship feels genuine, it can be very hard to recognize that it’s a scam.  

How to Stay Safe

You should never send money to strangers. No matter how convincing their story may be, financial assistance is a major red flag for romance scams. 

There are several ways you can keep yourself: 

  • Never send money or information to someone you have never met in person before. 
  • Watch for excuses about why they cannot meet face-to-face. Scammers often claim to be overseas for work or not in your area. 
  • Be cautious if you meet someone online and they profess their love or deep feelings very quickly. 
  • Do a reverse image search on the profile pictures to see if they appear anywhere else. 
  • Talk to a trusted family member or friend if you’re unsure. An outside perspective might help reveal red flags. 

5. Additional Scams

QR codes 

QR codes are convenient, but they can also be risky. Fraudsters may place fake codes in public places to steal your personal information or lead you to fraudulent websites. Before scanning, verify that the code belongs to where it is placed. If something feels off, trust your instincts and don’t scan. 

Identity Theft

Identity theft can happen to anyone. If you notice any strange transactions or receive bills for things you didn’t buy, you might be a victim of identity theft. To prevent identity theft, secure your personal information, use strong passwords, and check your credit reports once or twice a year. 

For even more protection, the Canada Anti-Fraud Centre is an excellent resource. Their website shares recent scams, prevention strategies, and what steps to take if you become a victim of fraud. 

At Mainstreet, we understand how overwhelming fraud can be. That’s why our team is committed to supporting you if you have any questions. Whether it’s helping you spot red flags or setting up account safeguards. We’re here to make you feel supported in everyday banking.

How Can You Stay Protected 

The best way to protect yourself from scams is to stay alert and take proactive steps to secure your personal information. A few simple steps can go a long way in reducing the risks of scams. 

Verify the source: Always verify the legitimacy of the sender before sharing or providing financial information. 

Use strong passwords: Create complex passwords with a range of upper and lowercase letters, numbers, and special characters. Do not reuse passwords across multiple accounts. 

Enable two-factor identification (2FA): Adding this extra layer of security makes it harder for fraudsters to access your account. 

Avoid clicking links in unsolicited messages: Scammers often send fake emails or texts with dangerous links. If you get an unexpected message, do not click the link. 

Never give unsolicited access to your computer: If you ever receive an unwanted message or an unsolicited call, never grant the caller access to your computer. This is a common tactic used by scammers to access your computer and steal your information.

What To Do if You’ve Been Scammed

If you suspect you’ve fallen victim to a scam, it’s important to act quickly. Taking immediate steps can help limit and protect your financial future. 

  1. Notify your financial institution: If your Social Insurance Number, account details, or credit or debit cards may have been compromised, contact your financial institution immediately. This way, they will lock your cards, require ID when you arrive in the branch, and monitor your account more closely for suspicious activity. 
  1. Contact local law enforcement: If you think you’ve been a victim of a scam, contact your local police department. 
  1. Monitor your credit rating: Do regular check-ins on your credit score to make sure it is not compromised and there are no unwanted transactions. 
  1. Update your passwords:  Change your passwords to accounts that may have been affected. 
  1. Canadian Anti-Fraud Centre: If you need any further assistance, contact the Canadian Anti-Fraud Centre. 

If you believe you’ve been scammed, following the steps above as soon as possible will limit the fraudster, secure your financial future, and avoid any long-term issues.

How Mainstreet Protects You

As a Mainstreet member, keeping your funds safe is our top priority. We have advanced technology to monitor accounts and quickly detect suspicious activity. Some of these safeguards include: 

  • Alerts for online transactions. 
  • E-transfer blocks where suspicious behaviour patterns are detected.  
  • Account activity notifications for sudden balance drops or duplicate transactions. 

If we notice something unusual, we will contact you so we can verify the transaction. This proactive approach helps stop fraud before it escalates.  

On your online banking account, you can also access digital banking tools to keep you safe. You can add custom alerts and messages if someone logs in to your account, tries to set up a new e-transfer recipient, sets up a new bill payee, and more. Along with a strong password, these are a few easy ways you can keep your online banking protected. 

If you’re ever unsure about a phone call, email, or message you’ve received, or if you believe your account has been compromised, don’t hesitate to contact us or visit your local branch. Our advisors are here to help protect your financial needs, give you peace of mind, and guide you through any concerns.

Your Guide to Student Banking: Accounts, Credit Cards, Loans and More

At Mainstreet Credit Union, we make student banking simple, smart, and tailored to your needs. Whether you’re starting university, college, or returning to post-secondary school, managing your money doesn’t have to be another stressor. With our range of student-focused banking solutions, you can keep your finances on track and your focus on building the future you want. As a Mainstreet member, we’re here to support you every step of the way with personalized advice and all your student banking needs to help you succeed. 

What’s a Credit Union (and Why Should You Care)?

Think of a credit union as a financial institution that puts people before profits. That means our members come first in everything we do. We’re local, community-based, and focused on helping you succeed with the right financial products. You’ll find all the same services you’d expect from a bank, like chequing accounts, credit cards, and loans, but with more personalized advice and service tailored to your unique financial journey. 

Student Banking Solutions

Mainstreet offers all the financial tools and advice you need for your post-secondary journey. From day-to-day banking to a student line of credit to credit cards. Not sure exactly what you need? Our advisors are ready to guide you with tailored options to make sure you have everything you need. Here are some of our products that could benefit you throughout student life. 

Chequing Accounts

At Mainstreet, we know student life comes with enough expenses. Your bank account doesn’t need to be one of them. That’s why we offer two chequing accounts with no monthly fee for students, plus a third super low-fee option if you’re looking for more in-branch access. 

  • The E-ssential chequing account is a great fit if you mostly bank online. It includes unlimited electronic transactions like bill payments, e-transfers, and debit purchases, and 2 free in-branch transactions a month. There’s no monthly fee if you’re under 26. 
  • The Light chequing account is another no-fee option, designed for students with light banking needs. It gives you access to 12 transactions, free e-transfers, and online services at no cost if you’re under 26. 
  • Prefer in-person banking or want access to more in-branch services? The Complete chequing account gives you 25 transactions both online and in-branch for a low monthly fee of $1.95 for members under 26. 

No matter which chequing account you choose, you’ll also get a Mainstreet Debit Mastercard. With your Debit Mastercard, you can shop online or in-store, wherever Interac and Mastercard are accepted, and purchases are deducted directly from your chequing account. You’ll also have access to over 4,500 Ding-Free ATMs to use across Canada to avoid any extra fees when you need the cash. 

Not sure which chequing account is the right fit for you? Explore all our chequing account options online or meet with an advisor to find the best fit for your student lifestyle.

Credit Cards

Mainstreet offers credit cards with low interest rates, low annual fees, and cash back rewards that are perfect for students just starting out. Our Cash Back Mastercard is an excellent option for students who are starting to build their credit. You can earn cash back points on everyday purchases such as groceries, gas, sustainable transit, and select recurring bills, to help you maximize rewards as you start to build credit responsibly.  

You can apply your cash back credit toward your account balance anytime, and the CardWise app makes it easy to track your spending and stay on budget. Learning how credit cards work and developing good habits now can set you up for a strong financial future. 

Student Lines of Credit

Managing finances during school can be challenging, especially when juggling tuition, living expenses, and the costs of student life. A student line of credit gives you flexible access to funds while you study, with interest-only payments required while you’re in school. Helping you stay focused on your education.  

Once you’ve completed your studies, there’s no immediate pressure to start paying back the principal amount. Instead, you get a 12-month grace period during which you’re only required to pay interest payments. This gives you valuable time to find a job, get financially settled, and prepare for full repayment without the stress of principal payments right after school.

Overdraft Protection

Even with the best-laid plans, there could be times when things get a little tight, whether it’s an unexpected expense or bill payment, overdraft protection is a great way to make sure you’re covered if you ever go into a negative balance in your account. Overdraft protection steps in to cover the amount of the transaction, preventing declined payments and non-sufficient funds (NSF) fees. Here’s how it works. 

  • Cover short-term shortfalls: Protect yourself when spending exceeds your current balance. 
  • Loan Amount and Limits: Access up to a $5,000 overdraft limit. 
  • Avoid declined transactions: Keep your debit card, cheques, and payments running smoothly. 
  • Interest: Interest is charged only on the overdraft amount used at 19.9%, so it’s best used as a backup. 
  • Flexible repayment: Pay back the overdraft amount when you have funds; you only need to pay the interest owing by the end of each month. 

If you are interested in adding overdraft to your bank account, talk to a Mainstreet Advisor to see how we can help you manage unexpected expenses.

Bank Your Preferred Way

Life as a student is busy, and we know convenience matters. That’s why Mainstreet allows you to bank wherever, whenever, and however you need to. With Mainstreet, you’ll have access to your accounts through our online banking website, mobile banking app, or by visiting a branch.  

You can meet with a Mainstreet Advisor in any way you prefer, whatever fits your schedule best. Whether in person, virtually, or by calling or texting our Member Experience Centre. 

No matter where school takes you, Mainstreet is here to help you meet your financial goals with flexible, student banking options tailored to your needs.

Student Loan vs. Line of Credit: What’s the Difference?

Deciding between a student loan and a student line of credit? There are a few differences to understand before you get started.  

A student loan is typically provided by the government to help you pay for post-secondary education. Usually, you will receive a lump sum payment right away, and repayment starts after graduation. 

While a student line of credit, on the other hand, is offered by financial institutions like Mainstreet. It provides more flexibility, with interest-only payments while you’re in school. Plus, you’ll have a 12-month grace period of interest-only payments after graduation. Giving you time to get settled before tackling the principal repayments.  

A student loan or a student line of credit may require a co-signer, like a parent or guardian. It all depends on your credit history and the type of loan and credit product you’re applying for. Our advisors are here to help you explore every option to find the right fit for your education.

Budgeting Basics

Need some financial guidance to help manage your expenses during the school year? We’re here to help with simple tools to track your spending, build a budget, and even save a little (yes, it’s possible)! Taking charge of your finances while in school will give you a valuable head start after you graduate. Our advisors will work with you to tailor your needs and ensure you have the right plan for your goals.

Ready to Start?

Student life is full of challenges and lots of new unknowns, and your student banking shouldn’t be one of them. At Mainstreet Credit Union, we’ve got your back with the right student banking tools, advice, and support that fit your goals and are tailored to your needs. If you want to learn more or get started, book an appointment with a Mainstreet Advisor so you can feel confident during your post-secondary journey.

How Much Do You Need for a Down Payment?

Buying a home is one of the biggest financial decisions you’ll make in your life, and it comes with the question: “How much do I need for a down payment?” Whether you’re a first-time home buyer, upgrading to your next home, or buying a second property, understanding down payment requirements is essential to making smart, confident, and informed financial decisions. 

In this blog, we’ll break down everything you need to know from the minimum down payment needed for a home to how it impacts your mortgage, including mortgage insurance. Plus, we’ll share how Mainstreet can support you with personalized advice and flexible solutions designed to help you succeed. 

What Is a Down Payment?

A down payment is an upfront payment made when purchasing a home. This payment reduces the total amount you need to borrow from your lender. This money can come from various sources such as your first-home savings account (FHSA), personal savings, investments, or even gifts from family, but no matter the source, it must be properly documented for mortgage approval.

How Much Do You Need for a Down Payment?

The amount you need for a down payment on a home depends on several factors, including the price of the home and your financial situation. In Canada, the minimum down payment for a home is 5% for homes priced at $500,000 or less; for homes priced above $500,000, a down payment of 5% is required for the first $500,000, and then 10% for the remaining portion is required. There is no maximum amount for a down payment; however, a 20% down payment is often the benchmark to avoid mortgage insurance.  

Let’s compare a 5% down payment vs a 20% down payment on a $500,000 home.  

  • With a 5% down payment, you’d pay $25,000 upfront, and you would have a mortgage loan of $475,000 plus mortgage insurance. 
  • With a 20% down payment, you’d need $100,000 up front, and your mortgage loan would be 400,000 while avoiding mortgage insurance. 

There are lots of factors to consider when choosing the amount of a down payment you’re going to put on a home, and it is key to make sure the down payment amount works for you and your goals. When you meet with a Mainstreet advisor, we’ll walk you through your options to help you understand how your down payment affects your mortgage, so you can make the right financial decision. 

What Is Mortgage Insurance and When Is It Required?

Mortgage insurance, often referred to as mortgage default insurance in Canada, is designed to protect the lender in case the borrower is unable to make their mortgage payments. It does not provide direct coverage to the homebuyer, but it enables buyers to qualify for a mortgage with a smaller down payment, as low as 5% of the home’s purchase price. 

In Canada, mortgage insurance is required by law if your down payment is less than 20% of the purchase price of the home. This type of mortgage is called a high-ratio mortgage, and it comes with slightly lower interest rates compared to conventional mortgages. This insurance helps reduce the lender’s risk, allowing you to borrow with a lower down payment.

How Much are Mortgage Insurance Premiums?

Mortgage insurance premiums aren’t set by your lender—they’re set by the insurer, typically the Canada Mortgage and Housing Corporation (CMHC), which is a government-backed organization, or by another approved insurer like Sagen or Canada Guaranty.  

Mortgage insurance premiums are based on your loan-to-value (LTV) ratio, which is the percentage of your home’s value that you’re borrowing. The higher your LTV, the higher your insurance premium. Here’s a breakdown of the mortgage insurance premiums you can expect, based on your Loan-to-Value (LTV) ratio: 

Loan-to-Value (LTV) Ratio Premium Rate 
Up to and including 85% 2.80% 
Up to and including 90% 3.10% 
Up to and including 95% 4.00% 

These premiums are calculated as a percentage of your total mortgage amount and can be added directly to your loan, so you don’t need to pay them upfront. Additionally, if you amortize your mortgage over 30 years instead of the standard 25, an additional 0.20% premium rate applies. For example, a 5% down payment amortized over 30 years will be a 4.20% premium rate. 

Based on our previous $500,000 home purchase example, when you pay less than a 20% down payment, you will be required to have mortgage insurance. For example, if you only pay a 5% ($25,000) down payment, you will be borrowing the other 95% ($475,000), and you will need to have mortgage insurance added. That extra premium, according to the above chart, will represent an additional 4% for mortgage insurance.

Comparing Down Payments, Mortgage Payments, and Premiums

Now that we’ve gone through the basics, let’s go through an example to compare the impact of buying a $500,000 home with a 5% down payment vs a 20% down payment. We’ll look at the total mortgage amount, insurance premiums, and monthly payments. 

With a 5% down payment, your home’s down payment would be $25,000, leaving you with a mortgage amount of $475,000.  Since this is considered a high ratio mortgage, mortgage insurance is required. Your insurance premium would be 4% of the $475,000 loan, adding $19,000 to the loan amount, bringing your mortgage to a total of $494,000. 

At a 5-year high-ratio fixed interest rate of 3.99%, with a 25-year amortization, your monthly payment would be $2,595.86. After 5 years, you would still owe $429,971.58 on the mortgage. 

Now let’s consider a 20% down payment on a $500,000 mortgage. In this case, you’d contribute a $100,000 down payment, and your mortgage loan would be $400,000. Because you’ve reached the 20% threshold, mortgage insurance is not required, which lowers your overall borrowing cost. 

With a 5-year fixed mortgage at 4.34%, amortized at 25 years, your monthly payments would be $2,178.45. After the 5-year term, your remaining mortgage balance would be $350,348.98. 

If a 25-year amortization feels a bit tight, you may be eligible for a 30-year amortization instead. This option is available with a down payment of 20% or more, and in some cases, less than a 20% down payment is required for first-time homebuyers or when purchasing a newly built home. Choosing a longer amortization can reduce your monthly payments, making it easier to manage your budget and cash flow. 

Don’t forget that in Ontario and other provinces, PST applies to the insurance premium and must be paid at the mortgage closing, and it cannot be added to the mortgage. 

Whether you’re aiming for a 5% or 20% home down payment, Mainstreet can help you evaluate all your options that fit your unique goals. Try comparing down payments yourself using our down payment calculator.

Saving for Your Down Payment

If you’re just starting to save for a home, there are smart ways to grow your money faster than with a standard savings account. Two effective options are the First Home Savings Account (FHSA) and the (TFSA). 

The FHSA is designed specifically to help Canadian first-time home buyers save for their first home. It allows individuals to contribute up to $8,000 per year, with a lifetime contribution limit of $40,000. Contributions are tax-deductible, and the funds can grow tax-free within the account. When an FHSA is used to purchase a qualifying first home, withdrawals from the FHSA are also completely tax-free. From the moment you open your FHSA, you have 15 years to use the funds toward a home purchase. 

Once you have maxed out your FHSA, saving with a TFSA is a great next step. While contributions to a TFSA are not tax-deductible, any interest, dividends, or capital gains earned within the account are completely tax-free, and you can withdraw funds at any time, for any reason, without paying tax, ideal for flexible savings towards your down payment for a house.  

At Mainstreet, we can help you open and manage both accounts, so you can reach your savings goals faster and save for a home down payment.

Make Home Ownership a Reality

Many factors determine the right down payment amount for your unique circumstances. Putting down as little as 5% is an increasingly common path to buying a home, especially for first-time home buyers. With options like mortgage insurance and high-ratio mortgage rates, and effective savings tools, there are lots of ways to save for a down payment that work for you. 

Whether you’re just beginning to save or ready to explore your buying options, Mainstreet is here to assist you on your home ownership journey. Book an appointment or visit your local branch, and we can guide you through the process and help make your homeownership dream a reality with personalized advice catered to you.

Why You Should Get Pre-Approved for a Mortgage

Buying your first home is exciting, but it can also be overwhelming. Between listings, showings, bidding wars, and budgets, it’s easy to feel unsure about where to start. That’s where getting pre-approved for a mortgage comes in. It’s one of the smartest first steps you can take in your home-buying journey. 

At Mainstreet, we make the mortgage pre-approval process simple and personalized, so you can shop with confidence, understand your real budget, and be ready to act when the right home comes along. Whether you’re buying your very first place or upgrading to something new, we’ll explain why pre-approval matters and how it helps you move forward with clarity, confidence, and control. 

  1. It Helps You Set a Clear, Realistic Budget
  1. Makes your Offer More competitive
  1. It Helps You Close Faster and with Less Stress
  1. It Helps You Avoid Surprises Later On
  1. It Gives You a Clearer Picture of the Costs Involved

1. It Helps You Set a Clear, Realistic Budget 

Before you start house hunting, it’s important to know your budget and what makes sense for your life, not just what you hope to afford. Getting pre-approved for a mortgage helps take the guesswork out of the process and gives a clearer picture of your borrowing power. It’s based on your income, savings, debt, and credit history; therefore, you can focus your search on homes that truly fit your financial situation. 

At Mainstreet, our mortgage advisors take the time to understand your full financial picture and help you explore your options. Your pre-approval is valid for 90 days, and you can lock in your interest rate during that time, so you can start searching for your new home with confidence. If our rates go down, we’ll automatically give you the lower one. 

Want to get a sense of your numbers before you meet with us? Try our mortgage calculator. 

To make things even easier, we’ve created a pre-approval mortgage checklist to help you come prepared for your initial appointment. 

2. It Makes Your Offer More Competitive

When sellers receive multiple offers, they tend to prioritize buyers who already have home loan pre-approval. It shows that you’re serious, financially ready, and less likely to run into delays with your financing. Even in a calmer housing market, having pre-approval gives you an edge and can help your offer stand out. 

Real estate agents also prefer working with pre-approved buyers because it helps keep the process moving smoothly for everyone involved. 

A mortgage pre-approval gives you a strong estimate of what you can borrow, but your final approval will also depend on the specific property and any remaining documents. That’s why it’s a good idea to include a condition of financing in your offer. It protects you in case anything changes and gives you peace of mind during negotiations.

3. It Helps You Close Faster and with Less Stress

Once your offer has been accepted, there’s still a lot to do before you can officially call the place your own. This is where being pre-approved for a mortgage pays off. Because your financial information has already been reviewed, the final approval process tends to move more quickly. You’ll spend less time gathering documents and more time preparing for your move. 

When you’re already pre-approved, you can work with your lender to finalize the details faster so you can get to the fun part: getting your keys and settling into your new home.

4. It Helps You Avoid Surprises Later On

Getting pre-approved for a mortgage helps you avoid common roadblocks later in the home-buying process. Without it, you might fall in love with a home, put in an offer, and then find out you don’t qualify for the mortgage you need. That can be discouraging, especially if you’ve already pictured yourself living there.  

Pre-approval helps you move forward with more clarity and fewer surprises. It can even uncover any potential credit or document issues early on, giving you time to address them before your search gets serious. 

It’s all about being prepared. The more you know upfront, the smoother your home-buying journey will be.

5. It Gives You a Clearer Picture of the Costs Involved

When people think about buying a home, they often focus on the down payment, but there are other costs to consider. Getting pre-approved for a mortgage helps you understand the full financial picture so you can plan with confidence. During your pre-approval appointment, your advisor will walk you through all the costs that come with buying a home, including: 

  • Land transfer tax 
  • Closing costs 
  • Legal fees 
  • Home inspections 
  • Utility setup costs 
  • Potential repairs or upgrades 

Knowing these numbers upfront helps you avoid surprises and feel more in control of your decision. It also gives you time to budget or adjust your plans before you make an offer. 

At Mainstreet, our goal is to make sure you’re prepared, not just for your mortgage, but for everything that comes with it.

How to Get Started

Now that you understand the benefits of getting pre-approved, the next step is finding the right mortgage partner to guide you through the process. At Mainstreet, our advisors take the time to get to know you and your financial goals. We offer tailored mortgage solutions designed to fit your lifestyle, not just a one-size-fits-all rate. With flexible options, personalized advice, and local decision-making, we’re here to make your pre-approval experience as smooth and supportive as possible. And with our simple three-step process, getting started is easier than you might think. 

Book an appointment today to meet with a Mainstreet advisor and take the next step toward owning your next home with confidence.

 Mortgage Renewal Guide: Everything You Need to Know to Prepare

Is your mortgage coming up for renewal? It’s the perfect time to reassess your financial goals and ensure your mortgage still fits your lifestyle. In this guide, we will cover what to expect, the important questions you should be asking, and how Mainstreet Credit Union can help you make the right mortgage renewal decision with confidence, while keeping the process as seamless as possible.

  1. When and why do mortgage renewals happen? 
  2. Why you shouldn’t just sign the renewal letter 
  3. Things to consider: rate, terms, and goals 
  4. Timing Tips
  5. How Mainstreet advisors help tailor your renewal

When and why do mortgage renewals happen?

A mortgage renewal happens at the end of your mortgage term, typically somewhere between 1 to 5 years. This is your chance to reassess your financial situation and choose a new term, new interest rate, or even refinance your mortgage. When you renew, you’ll continue paying off the remaining balance, often with a revised amortization schedule.  

If you’ve built up equity in your home, this might also be a good time to explore options like a home equity line of credit (HELOC) to help with home renovations, consolidating debt, or funding larger expenses. At Mainstreet, we can help you understand all your options so you can tailor your mortgage renewal to your current financial needs.

Why you shouldn’t just sign the renewal letter

When your mortgage term ends, your lender will likely send you a renewal letter. While it may be tempting to sign and send it back, doing so without reviewing your options can be costly. Your interest rate or payment schedule may no longer match your needs, and you could end up locked into a term that doesn’t support your financial goals. Your monthly payments or interest rates could change, affecting your budget, or you could be locked into a term or interest rate that doesn’t work for you. 

Instead, take your time and asses your financial needs and goals with a mortgage advisor before signing your mortgage renewal. Renewing your mortgage allows you to renegotiate your term or even consider switching to a different lender that offers more flexibility. Book an appointment with a Mainstreet Advisor to explore your options and get the personalized advice you need to make an informed decision.

What to consider: rate, terms, and goals

When renewing your mortgage, it’s just as important to consider the rate, terms, and your financial goals as it was when you first signed your mortgage. Any changes to these elements can affect your monthly payments, the time it takes for you to become mortgage-free, and your ability to meet other financial goals. For example, the interest rate you choose will directly impact your monthly payments. A higher interest rate means higher payments and increases the overall cost of borrowing, which could affect your monthly budget.  

Take some time to reflect on your previous term. Was it the right length and the right fit for your needs? Do you need to make different adjustments moving forward? If your financial goals have shifted, such as focusing on paying down debt, planning renovations, or saving for the future, your renewed mortgage should reflect that.  

Use our mortgage calculator to compare payment scenarios and view our current mortgage rates to see how a different rate or term could impact your payments.

Your options: renew, renegotiate, switch lenders

When your mortgage term is coming to an end, you have three key options available to you. You can renew, renegotiate, or switch your mortgage to a different lender. Each option is different and offers different advantages. Mainstreet can guide you through every step of the mortgage renewal process so you can fully understand the difference between each option and make the correct decision.

Renew

Renewing your mortgage means continuing to pay your original mortgage with the same term and amortization, but with an updated interest rate. This option is typically the most straightforward, especially if you’re happy with your current lender and mortgage structure. For example, if you originally had a 5-year fixed-term mortgage with a 25-year amortization, at the time of renewal, your mortgage would continue with a new 5-year fixed rate and a remaining amortization of 20 years. 

Your amortization is the total number of years you chose to pay your entire mortgage balance off. With each renewal, your amortization shortens, and your updated payments reflect that.

Renegotiate

If your current mortgage no longer fits your financial needs, that’s completely normal, and it may be time to pivot. Renegotiating your mortgage lets you tailor your next term more closely to your evolving goals. You can renegotiate to a shorter or longer term, move into a fixed, variable, or open interest rate, and adjust your amortization period. You may also want to reassess your payment frequency or consider adjusting your prepayment privileges if your cash flow has changed. You can change and adjust as much as you need to fit your financial goals and needs, and pay off your mortgage sooner. 

If you want to renew your mortgage early, a strategy called blending and extending is an option for you. A blended rate means your previous interest rate is blended with the current posted rates and is calculated based on the amount of time you have left on your term. You may be looking to renew your mortgage early for various reasons, such as a lower rate, which can save you money on interest paid and lower your monthly payments. 

You can also explore refinancing, especially if you’ve built equity in your home. This lets you take out a larger mortgage and use the extra funds for things like debt consolidation, home renovations, or other big financial goals.

Switch lenders

Thinking about switching lenders at mortgage renewal? You’re not alone. Many people take this opportunity to explore this option to see if another lender can better match their needs. If your term is not expiring soon, it could cost you a large penalty to renew your mortgage early and switch to a different lender.  

While rate is important, it’s not the only factor. It is important to look beyond the mortgage rate and consider the level of service, prepayment options, flexibility, and whether the lender aligns with your financial goals. At Mainstreet, we make switching mortgage lenders easy. Book a meeting with an Advisor to find out how. 

Use our mortgage calculator to see how different rates and terms could impact your monthly payments.

Timing Tips

One of the best things you can do is start thinking ahead about your mortgage renewal, ideally, 3 to 6 months before your term ends. This gives you lots of time to explore your options and avoid feeling rushed into a decision. 

Getting a head start can help you avoid potential rate increases and lock in at a lower interest rate before the market shifts. If your payments are expected to increase, it’s good to understand by how much so that you can adjust your monthly budget and avoid surprises.  

Lastly, it’s important to review your financial goals before your mortgage renewal date. If your financial goals have changed, your next mortgage should reflect that; it could mean adjusting your term length, payment frequency, or mortgage type to help keep your goals on track.

How Mainstreet advisors help tailor your renewal

When it comes time to renew your mortgage, you have a wide range of options and opportunities. You could renew, refinance, or even use the equity in your home to support other goals. At Mainstreet, we take the time to get to know you and understand your unique goals to ensure you have the right mortgage solution that best fits your life. 

If your renewal date is coming up, now is the perfect time to meet with a Mainstreet Advisor. We’ll make the process as seamless as possible and help you choose the mortgage that supports your financial goals. Book a meeting with an advisor to start your renewal conversation today.