Food Costs on the Rise
The 2025 Canada Food Price Report forecasts a 3% to 5% increase in food prices. For a family of four, that could mean spending $801 more on groceries annually. While meat, vegetables, and restaurant meals are expected to see the highest increases, the good news is that B.C.’s food inflation is projected to remain below the national average.
Housing Costs Continue to Climb
Renters will face a 3% increase in allowable rent hikes, and the BC Real Estate Association predicts a 3.3% rise in home prices. New home-flipping taxes and varying property tax increases across municipalities, including a 3.9% hike in Vancouver, will also affect homeowners. Additionally, utility fees in Metro Vancouver are set to jump by 25.3%.
Energy and Transportation Updates
The carbon tax will increase in April, raising the cost of gasoline and other fuels. FortisBC natural gas rates will rise by 17.5%, while BC Transit and TransLink fares will see hikes of 20% and 4%, respectively. However, BC Ferry fare increases are capped at 3.2% until 2028.
Silver Linings for 2025
GST Holiday Savings
The federal GST holiday, in effect until February 15, 2025, offers a 7% savings on select prepared foods, non-alcoholic beverages, toys, and more.
B.C. Tax Rebates
The provincial government will issue tax rebates of $500 for individuals and $1,000 for families, providing some financial relief this spring.
Carbon Tax and Family Benefits
Increased carbon tax rebates and family benefits will continue through June, with families of four seeing up to $1,760 in additional support.
Mortgage Rule Changes
The insured mortgage cap has increased to $1.5 million, and first-time buyers or those purchasing new builds can now access 30-year amortization periods, reducing monthly payments.
Lower Interest Rates
With the Bank of Canada’s key interest rate down to 3.25%, mortgage holders and borrowers will benefit from lower financial pressures compared to last year.
Looking Ahead
Navigating the financial changes in 2025 can be overwhelming, but you don’t have to face it alone. Whether you’re looking to buy a home, refinance, or explore ways to manage rising costs, I’m here to help you make informed decisions. Let’s work together to achieve your financial goals this year.
Here’s to a prosperous and joyful 2025! Don’t hesitate to reach out for personalized advice or assistance.
Inspired by Global News – Simon Little. Full Article here: What will cost British Columbians more in 2025? | Globalnews.ca