Tax refunds - MoneySense

Tax refunds

For many the cheque hasn’t even arrived but the money is already spent. This and more in Thursday’s roundup.

  • The average tax refund for this year is $1,585, the CRA says. Some 37% of Canadians expecting a refund plan to use it to pay down debt, while 20% say they’ll reinvest the money, according to a new poll for BMO Nesbitt Burns. Ten per cent said they’ll spend it on travel, leisure or luxury goods and another 7% are planning home renovations. “It’s encouraging to see so many Canadians invest their tax refund money or use it to lower their debt load,” said BMO’s John Waters said in a release. “While it may be tempting to spend the money on a trip or a flat screen TV, paying off debt or investing for the future will be more beneficial in the long term.” For the hard numbers on why and how reinvesting your refund makes sense, click here. And to ensure you haven’t missed any refund opportunities, check out our online Tax Centre.
  • As a group, first-time homebuyers are facing bigger barriers to ownership than their parents. Saving for a downpayment, steep house prices and entry-level salaries are all challenges, according to a recent TD Canada Trust poll of Millennials and Baby Boomers. The bank’s infographic below illustrates how much first-time buyers in major cities will need to save for a 10% downpayment on an average home as well as ongoing weekly carrying costs.