Want to Pay Less Tax This Year? Liam the Broker Breaks Down the Simple Moves Most Canadians Will Miss in the 2025 Filing of Taxes in 2026!

 

2025 Year-End Tax Moves Every Canadian Employee Should Make (Liam the Broker Edition)

1. DEADLINES THAT MATTER

Dec 30, 2025 — Last day for investment trades to settle in 2025.
Canada is now on T+1 settlement (CIBC confirms this), meaning a trade done on Dec 30 settles Dec 31 — just in time for tax-loss or gain crystallization.

Dec 31, 2025 — Final day for:

• • Charitable donations

• • Medical expenses for a 12-month period ending in 2025

• • Home renovation credit expenses (HATC / MHRTC)

• • RRSP conversion to RRIF for anyone turning 71 in 2025
    (CIBC confirms all of these.)

March 2, 2026 — RRSP deadline for 2025 income.

2. 2. INVESTING & TAX-LOSS SELLING (THE SIMPLE WAY)

Tax-Loss Selling — the “don’t shoot yourself in the foot” edition

If your investments in a non-registered account dropped, you may be able to claim a capital loss — but only if you sell before Dec 30.
The loss can offset:

• • gains this year

• • gains from the last 3 years (carryback)

• • future gains (carryforward)

Watch out for FX:
CIBC shows examples where people thought they had a loss on a U.S. stock… but after converting to CAD, it was actually a gain. The CAD/USD dance is sometimes unfriendly.

Watch the superficial-loss rule:
If you (or spouse, or your RRSP/TFSA) buy back the same or “identical property” within 30 days before/after sale, and still hold it 30 days later, your loss is denied (CIBC).
Don’t worry, the loss isn’t gone — it gets added to your cost base — but you lose the tax benefit this year.

WARNING: Never transfer a losing investment into your RRSP/TFSA

You cannot claim the loss. CRA disallows it (CIBC).
Instead:

Sell in the non-registered account.

Claim the loss.

Contribute the cash to RRSP/TFSA.

Repurchase after 30 days if you want.

A little inconvenient, but way better than losing your tax break.

3. 3. RRSP, TFSA, AND GOVERNMENT SAVINGS PROGRAMS RRSP

• • 2025 limit is based on 18% of 2024 earned income, up to $32,490.

• • Contributions up to March 2, 2026 can be used for your 2025 return.

• • RRSP contributions reduce taxable income (CIBC), which may help with borrowing power depending on how lenders treat gross vs net.

TFSA (Tax Free Savings Account)

• • 2025 contribution room: $7,000.

• • Total lifetime room (if eligible since 2009): $102,000 (CIBC).

• • If you plan a big withdrawal in early 2026, consider withdrawing in 2025 so your contribution room restores Jan 1, 2026.

FHSA (First Home Savings Account)

This is the holy grail for first-time buyers.

• • $8,000 annual limit

• • $40,000 lifetime

• • Tax-deduction on contributions (RRSP-like)

• • Tax-free withdrawals for your home (TFSA-like)

• • You can combine FHSA + HBP (Home Buyers’ Plan) for major tax-advantaged firepower (CIBC).

If you opened an FHSA last year but didn’t contribute, you may have $16,000 room in 2025.

Home Buyers’ Plan — temporary 3-year repayment holiday

Withdrawals between Jan 2023–Dec 2025 get an extra 3-year delay before HBP repayment starts (CIBC).
This can reduce cashflow pressure when you buy.

4. 4. RESPs & EDUCATION PLANNING Contributions

• • First $2,500 per child per year earns $500 CESG

• • You can catch up to $1,000 CESG per year (CIBC)

• • Max CESG: $7,200 per child

• • If your child turns 15 this year and has never been an RESP beneficiary, you must contribute at least $2,000 by Dec 31 to keep CESG eligibility.

Withdrawals (EAPs)

If your child is in post-secondary:

• • Withdraw before year-end to tax the EAP in the student’s low-income hands.

• • Limit in first 13 weeks: $8,000 (full-time), $4,000 (part-time).

• • You can still withdraw up to 6 months after they stop attending (CIBC).

MEDICAL EXPENSES & DISABILITY PLANNING Medical Expense Tax Credit

1. 1.  

You can claim expenses that exceed the lower of:

• • 3% of net income, or

• • $2,834 (2025 threshold; CIBC)

Choose any 12-month period ending in 2025 for maximum impact.

RDSP (Registered Disability Savings Plan)

Huge benefits if someone qualifies for the Disability Tax Credit.

• • Grants up to $3,500 and bonds up to $1,000 per year (income-tested)

• • Up to age 49 for federal contributions

• • 10-year carryforward on unused grants/bonds

• • For shortened life expectancy, you can withdraw up to $10,000/year without repaying grants — but a CRA election must be filed by Dec 31 (CIBC).

RENOVATION CREDITS MOST PEOPLE MISS – Home Accessibility Tax Credit (HATC)

• • 15% refundable credit on up to $20,000 of qualifying expenses

• • Up to $3,000 back

• • Must improve accessibility, mobility, or reduce risk (CIBC)

Multigenerational Home Renovation Tax Credit (MHRTC)

• • 15% refundable credit on up to $50,000

• • Up to $7,500 back

• • Must create a self-contained suite for a qualifying relative

• • Claim in the year the renovation is completed (CIBC)

Tip: Renovations can affect principal residence exemption if part becomes income-producing — check with a tax professional.

7. 7. DONATIONS & ALTERNATIVE MINIMUM TAX (AMT) Charitable Donations

• • Up to ~55% combined credit depending on province (CIBC)

• • Donate publicly traded securities for a tax-free capital gain under regular rules

• • Must be done by Dec 31

AMT Considerations

If your income is above ~$177,000 and you have large gains or donations, AMT may apply (CIBC).
Donation credits only count at 80% under AMT rules.
Talk to your accountant before finalizing big gifts.

8. 8. HOW THIS ALL CONNECTS TO BUYING A HOME

Let’s talk mortgages — because one smart tax move can accidentally wipe out your borrowing power.

A. Income Requirements for a $450,000 Home

In Alberta and most of Canada, lenders use Gross Debt Service (GDS) & Total Debt Service (TDS) ratios.
Depending on rates, debts, and taxes:

• • Typical max mortgage ranges from 4.0× to 4.5× household gross income.
    Source: Canadian lender underwriting models (Scotiabank, TD, and default CMHC stress-test parameters).

To qualify for a $450,000 home with minimum down payment:

• • Mortgage roughly ≈ $430,000

• • Needed income ≈ $100,000–$115,000 depending on:

– Property taxes

– Heat estimates

– Other debts

– Credit score

– Stress-test rate

If you want the safest planning number: Aim for at least $110,000 gross household income.

B. How Tax Strategy Can Harm OR Help Mortgage Approval

• • RRSP contributions lower taxable income — great for tax, sometimes neutral for mortgage unless you’re pushing into lower brackets.

• • TFSA withdrawals don’t impact income — lenders don’t count them.

• • Large investment losses, if they reduce your net income, may affect lenders who analyze multi-year incomes (self-employed especially).

• • FHSA contributions help you save faster AND reduce taxes (double win).

Before you make a year-end move, ask:
“Does this help or hurt me if I want to qualify for a mortgage next year?”

Then ask me — I’ll give you the lender-lens answer.

9. 9. WANT A YEAR-END MONEY STRATEGY CALL?

Taxes + mortgage qualification + cashflow planning
= A smoother path to buying your next home.

Call or text: 1-825-333-6468
Email: Liam@mintmortgages.ca

Website: LiamTheBroker.ca

SOURCES

• • CIBC Private Wealth — 2025 Year-End Tax Tips (PDF)

cibc 2025 year-end-tax-tips-en

• • BMO Private Wealth — 2025 Year-End Tax Planning Tips

• • CMHC & Big-5 lender underwriting guidelines for income-to-mortgage ratios and stress-testing