RRSP Basics: Questions Answered

Marci • January 24, 2017

Guest post by Randy Cass,

Welcome to RRSP season, otherwise known as the one time of year you’ll willingly read an article with RRSP in the title. It’s not a traditionally exciting topic, we get it, but it’s an important one. A little planning now will pay off big time later. We’re going to walk you through some of the most common questions we hear. Let’s get into it!

What’s so special about the RRSP?

A Registered Retirement Savings Plan is an account (think of it as a basket) that holds savings and investments. The magic of the RRSP is twofold: contributions are made with pre-tax income, meaning you’ll get a tax refund, and investments grow inside your RRSP basket tax free. That’s right, the tax man isn’t allowed to stick his hands in there. Compound interest is left to do what it does best, grow your nest egg!

Just remember deferring tax doesn’t mean you’ll avoid paying it altogether. You’ll have to pay taxes when you withdraw money during retirement just as you would on any other income. The idea is you should be in a lower tax bracket when you retire and take out money, therefore you’ll pay less tax overall. Making sense so far?

What kinds of things can I put in there?

You can fill your RRSP basket with investments like stocks, bonds, GICs, mutual funds, ETFs, and money market funds. A common misconception is that a RRSP is an investment you purchase. It’s an account you open (think basket) and fill with investments you buy.

How much can I contribute this year?

You can contribute up to 18% of your income to a maximum of $25,370 for 2016. Your contribution room accumulates over time so if you haven’t maxed out your contributions in the past (many people haven’t!) you’ll have even more room available. Check the notice of assessment you received with last years tax return, or give CRA a call, to find out exactly how much contribution room you have. Your accountant will be able to tell you as well.

What’s this contribution deadline I’ve seen advertised?

The stretch between New Years and the contribution deadline has been dubbed “RRSP Season” which you’ve likely seen advertised at local banks. March 1st 2017 is the latest you can contribute to your RRSP and have the deduction count for the 2016 tax year.

This doesn’t mean any contributions made during January and February 2017 have to be claimed against the 2016 tax year. If you want to make a contribution now and save part or all of the deduction for 2017 (perhaps you’re expecting your income to be higher) you can do that.

How often can or should I contribute to my RRSP?

All this RRSP season hype might give you the impression you can only contribute once a year, but that’s not true! You can set up regular automatic contributions (monthly, quarterly, etc) and avoid the RRSP season rush altogether.

An unexpected expense came up, can I withdraw money from my RRSP to cover it?

You can, but it might not be your best option. Depending on how much you withdraw you’ll be charged a 10-30% penalty and you’ll have to pay income tax on that money. Keep in mind you won’t be able to re-contribute the amount you withdrew at a later date. That contribution room is lost.

Two ways you can withdraw money without penalty is under the Home Buyers Plan and the Lifelong Learning Plan. The former is eligible to first time home buyers while the latter is available if you enrol in a qualified education program.

What happens to my RRSP when I retire?

Regardless of when you decide to retire, you’ll have to close your RRSP by December 31t in the year you turn 71. You can withdraw all your money (and be hit with a hefty tax bill), purchase an annuity, or transfer it into a Registered Retirement Income Fund (RRIF). You don’t have to convert your RRSP to a RIFF when you turn 65 or at the same time you retire. You can convert it at anytime before you turn 71.

What should I consider when opening or moving my RRSP?

You’ll need to look at the fees you’re paying —these include management expense ratios (MERs) for any mutual funds or ETFs, trading commissions, and annual administration fees. You want to keep these fees low so your money can grow as much as possible. If you’re working with a financial advisor check your statements to verify how much you’re paying. If you’re looking for lower fee investment options consider going the self directed route or opening account with one of Canada’s digital wealth advisors.

We think Nest Wealth is pretty awesome, but you know, we’re biased.

That’s it for now. You made it! You’re well on your way to mastering your RRSP and reaching those retirement goals. Knowledge is power, my friends.

This is a guest post from Randy Cass, CEO of Nest Wealth, a Canadian asset management company, it was originally published on their website on January 19th, 2017.

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Let’s Talk About Getting Top Dollar for Your Property

By Marci Deane • July 8, 2026

When it comes to selling your home, most people think the first call should be to a real estate agent. But the smartest first step often isn’t with your agent—it’s with an independent mortgage professional. Why? Because your mortgage plays a bigger role in your bottom line than most people realize. Planning to Buy After You Sell If selling means you’ll also be purchasing another property, you’ll want to know exactly where you stand financially before listing. Mortgage rules change regularly, and qualifying once doesn’t guarantee you’ll qualify again. Getting a pre-approval in place ensures you know what you can afford and eliminates surprises later. On top of that, reviewing the terms of your existing mortgage could uncover options you may not have considered. For example, porting your mortgage instead of arranging a brand-new one could save you thousands. Selling Without Buying Even if you aren’t planning to buy right away, there’s still an important step: understanding the cost of breaking your mortgage. Unless your mortgage is open, penalties apply—and they can be significant. By reviewing the numbers with a mortgage professional, you might find that simply adjusting your timeline could reduce or even avoid costly fees. Navigating Life Changes In situations like a marital breakdown, it can feel like selling the family home is the only path forward. But that’s not always the case. With the right guidance and a legal separation agreement, one spouse may be able to buy out the other, keeping the home and providing stability for everyone involved. The Bottom Line Selling your property is more than just putting a sign on the lawn—it’s about creating a financial plan that protects your equity and positions you for the best possible outcome. Before you take the leap, let’s sit down and review your options. 📞 If you’re ready to talk strategy and make sure you get top dollar for your property, I’d be happy to connect anytime.

Don’t Let Collections Derail Your Mortgage Application

By Marci Deane • July 1, 2026

Can You Get a Mortgage If You Have Collections on Your Credit Report? Short answer? Not easily. Long answer? It depends—and it’s more common (and fixable) than you might think. When it comes to applying for a mortgage, your credit report tells lenders a story. Collections—debts that have been passed to a collection agency because they weren’t paid on time—are big red flags in that story. Regardless of how or why they got there, open collections are going to hurt your chances of getting approved. Let’s break this down. What Exactly Is a Collection? A collection appears on your credit report when a bill goes unpaid for long enough that the lender decides to stop chasing you—and hires a collection agency to do it instead. It doesn’t matter whether it was an unpaid phone bill, a forgotten credit card, or a disputed fine: to a lender, it signals risk. And lenders don’t like risk. Why It Matters to Mortgage Lenders? Lenders use your credit report to gauge how trustworthy you are with borrowed money. If they see you haven’t paid a past debt, especially recently, it suggests you might do the same with a new mortgage—and that’s enough to get your application denied. Even small collections can cause problems. A $32 unpaid utility bill might seem insignificant to you, but to a lender, it’s a red flag waving loudly. But What If I Didn’t Know About the Collection? It happens all the time. You move provinces and miss a final utility charge. Your cell provider sends a bill to an old address. Or maybe the collection is showing in error—credit reports aren’t perfect, and mistakes do happen. Regardless of the reason, the responsibility to resolve it still falls on you. Even if it’s an honest oversight or an error, lenders will expect you to clear it up or prove it’s been paid. And What If I Chose Not to Pay It? Some people intentionally leave certain collections unpaid—maybe they disagree with a charge, or feel a fine is unfair. Here are a few common “moral stand” collections: Disputed phone bills COVID-related fines Traffic tickets Unpaid spousal or child support While you might feel justified, lenders don’t take sides. They’re not interested in why a collection exists—only that it hasn’t been dealt with. And if it’s still active, that could be enough to derail your mortgage application. How Can You Find Out What’s On Your Report? Easy. You can check it yourself through services like Equifax or TransUnion, or you can work with a mortgage advisor to go through a full pre-approval. A pre-approval will quickly uncover any credit issues, including collections—giving you a chance to fix them before you apply for a mortgage. What To Do If You Have Collections Verify: Make sure the collection is accurate. Pay or Dispute: Settle the debt or begin a dispute process if it’s an error. Get Proof: Even if your credit report hasn’t updated yet, documentation showing the debt is paid can be enough for some lenders. Work With a Pro: A mortgage advisor can help you build a strategy and connect you with lenders who offer flexible solutions. Collections are common, but they can absolutely block your path to mortgage financing. Whether you knew about them or not, the best approach is to take action early. If you’d like to find out where you stand—or need help navigating your credit report—I’d be happy to help. Let’s make sure your next mortgage application has the best possible chance of approval.

Best Mortgage Options for Canadian Homebuyers

By Marci Deane • June 24, 2026

Thinking of Calling Your Bank for a Mortgage? Read This First. If you're buying a home or renewing your mortgage, your first instinct might be to call your bank. It's familiar. It's easy. But it might also cost you more than you realize—in money, flexibility, and long-term satisfaction. Before you sign anything, here are four things your bank won’t tell you—and four reasons why working with an independent mortgage professional is the smarter move. 1. Your Bank Offers Limited Mortgage Options Banks can only offer what they sell. So if your financial situation doesn’t fit neatly into their guidelines—or if you’re looking for competitive terms—you might be out of luck. Working with a mortgage broker? You get access to mortgage products from hundreds of lenders : major banks, credit unions, monoline lenders, alternative lenders, B lenders, and even private funds. That means more options, more flexibility, and a much better chance of finding a mortgage that fits you. 2. Bank Reps Are Salespeople—Not Mortgage Strategists Let’s be honest: most bank mortgage reps are trained to sell their employer’s products—not to analyze your financial goals or tailor a long-term mortgage plan. Their job is to generate revenue for the bank. Independent mortgage professionals are different. We’re not tied to one lender—we’re tied to you. Our job is to shop around, negotiate on your behalf, and recommend the mortgage that offers the best balance of rate, terms, and flexibility. And yes, we get paid by the lender—but only after we find you a mortgage that works for your situation. That creates a win-win-win: you get the best deal, we earn our fee, and the lender earns your business. 3. Banks Don’t Lead with Their Best Rate It’s true. Banks often reserve their best rates for those who ask for them—or threaten to walk. And guess what? Most people don’t. Over 50% of Canadians accept the first renewal offer they get by mail. No questions asked. That’s exactly what the banks count on. Mortgage professionals don’t play that game. We start by finding lenders offering competitive rates upfront, and we handle the negotiations for you. There’s no guesswork, no pressure, and no settling for less than you deserve. 4. Bank Mortgages Are Often More Restrictive Than You Think Not all mortgages are created equal. Some come with hidden traps—especially around penalties. Ever heard of a sky-high prepayment charge when someone breaks their mortgage early? That’s often due to something called an Interest Rate Differential (IRD) —and big banks are notorious for using the harshest IRD calculations. When we help you choose a mortgage, we don’t just focus on the interest rate. We look at the whole picture, including: Prepayment privileges Penalty calculations Portability Future flexibility That way, if your life changes, your mortgage won’t become a financial anchor. A Quick Recap What your bank typically offers: Only their own limited mortgage products Sales-focused representatives, not mortgage strategists Default rates that aren’t usually their best Restrictive contracts with high penalties What an independent mortgage professional delivers: Access to over 200 lenders and customized mortgage solutions Personalized advice and long-term financial strategy Competitive rates and terms upfront Transparent, flexible mortgage options designed around your needs Let’s Talk Before You Sign Your mortgage is likely the biggest financial commitment you’ll ever make. So why settle for a one-size-fits-all solution? If you're buying, refinancing, or renewing, I’d love to help you explore your options, explain the fine print, and find a mortgage that truly works for you. Let’s start with a conversation—no pressure, just good advice.