2016 Year End Tax Tips

Katherine Martin • November 28, 2016

As financial literacy month winds down, now is a great time to review your personal finances and take advantage of any tax planning opportunities that are available to you (before the December 31 st deadline). Here are some tax tips you might want to consider to help reduce your 2016 taxes: 

Making RRSP Contributions

This year the deadline for RRSP contributions is March 1, 2017, which means you have about 3 months left to contribute for the 2016 tax year. If you’ve contributed the maximum amount in previous years your 2016 contribution room is limited to 18% of your 2015 income (with a maximum contribution of $25,370), excluding any pension adjustments. Remember, contributions made as early as possible will maximize tax-deferred growth!

Paying Investment Expenses

To claim a tax deduction (or credit) this year, investment-related expenses must be paid. This includes things like interest paid on money borrowed for investing, or investment advising fees . 

TFSA Contribution Reminder

The contribution limit for a TFSA in 2016 is $5,500. Luckily, there is no deadline to contribute to your TFSA! 

If you haven’t previously contributed to a TFSA you can contribute up to $46,500 this year (as long as you are at least 18 years old and have been a resident in Canada since 2009).

Making Charitable Donations

It’s the season of giving! The last day you can make a donation and receive a tax receipt is December 31st. Lots of charities accept online donations and offer electronic tax receipts (most likely emailed to you instantly). 

For Families with Kids

Education and Textbook Amounts 

This is the last year to claim education and textbook tax credits (they are being eliminated January 1, 2017). 

Claiming Federal Credits for Children’s Activities

This is also the last year you can claim two popular federal credits for your kids’ activities. If you don’t think you’ll spend enough to maximize these credits this year, perhaps consider prepaying these expenses for 2017. For example, if you’re planning on enrolling your kid in hockey or violin lessons in 2017, pay for the activities by December 31, 2016 and you can claim the credit(s). 

When it comes to your finances, the earlier to you act the more likely you are to benefit from tax savings when you go to file your 2016 personal tax return. Of course, you should check with your accountant or tax advisor for your particular situation to see how you can reduce your taxes.

 

This article was originally written by Randy Cass and published  here, on November 25th 2016.

Katherine Martin


Origin Mortgages

Phone: 1-604-454-0843
Email: kmartin@planmymortgage.ca
Fax: 1-604-454-0842


RECENT POSTS

How to Finance Renovations When Buying a Home in Canada

By Katherine Martin • November 4, 2026
Can’t Find the Right Home After You’re Pre-Approved? There’s Another Option The best place to start any home purchase is with a mortgage pre-approval. It gives you clarity around your budget and lets you shop with confidence. But what happens when you’ve been pre-approved, you know where you want to live—and nothing suitable fits your price range? This is a common challenge, especially for first-time homebuyers. Before buyer fatigue sets in, it may be worth considering a different approach: buying a home that needs work and financing the renovations as part of your mortgage . What Is a Purchase Plus Improvements Mortgage? A purchase plus improvements program allows you to buy a property and include the cost of approved renovations directly in your mortgage. This can be a great solution if: You can’t find a move-in-ready home within budget You’re open to renovations You want to customize the home from the start It opens up more options and can help you get into a location or property that would otherwise be out of reach. How the Process Works While the idea is straightforward, the process itself is structured and requires planning. Here’s a high-level overview: Renovation quotes are required upfront You’ll need detailed quotes for the work you want completed before final mortgage approval. Renovations must add value The lender must be satisfied that the improvements will increase the property’s value accordingly. Funds are reimbursed, not advanced You pay for the renovations initially. Once the work is completed and verified by an appraiser, the lender reimburses you and adds the cost to your mortgage. With the right guidance, this process is very manageable—but it’s important to understand the steps before committing. Is This Program Right for You? Purchase plus improvements isn’t for everyone. Buying a home is already a big undertaking, and adding renovations can increase stress—especially if timelines, budgets, or contractors become challenging. That said, if you’re financially prepared and like the idea of shaping the home to fit your needs, this program can be an excellent way to get more value and flexibility from your purchase. Final Thoughts If you’re struggling to find the right home after being pre-approved, you may not need to lower your expectations—you may just need a different strategy. If you’d like to explore whether a purchase plus improvements mortgage makes sense for you, feel free to connect. I’d be happy to walk you through the process and outline exactly what this option would look like in your situation.

Bank of Canada Raises Rate to 2.5% — October 28, 2026

By Katherine Martin • October 28, 2026
On October 28, 2026, the Bank of Canada raised its key interest rate by 0.25%, bringing it to 2.5%. If you have a mortgage, are shopping for a home, or have a renewal coming up, this decision matters. Here is a plain-language look at what changed, why it happened, and what it could mean for you.
© 2026 

Katherine Martin. All Rights Reserved.