|  Will gas prices ever go down? Here’s a fun blast from the past: at this time last year, Statistics Canada data shows the average price in Canada for regular fuel was $1.31 a litre. The average price of regular gas in Canada on Friday? Well, that’d be $1.86 a litre, according to GasBuddy.com analyst Patrick De Haan. So what’s behind the sticker shock at the pumps? And when can we expect relief? De Haan told Global News that gas prices “continue to set new records” in many parts of the country, and as long as the war in Ukraine continues to constrain global supply, the pain at the pumps is here to stay. The months ahead could be even worse as gas companies switch from the winter fuel blends to the summer versions, which are more expensive to produce. And if you’re holding your breath for some government relief, experts say there’s little policymakers can realistically do to reduce the cost of gas. Global News reporter Aaron D’Andrea has a full breakdown of what’s causing fuel prices to rise here — but don’t blame the messenger.  1 in 3 would change jobs to work from home: poll How badly do you want to avoid the commute? Enough to change jobs? A new Ipsos poll conducted for Global News says that one in three Canadian workers surveyed would do just that to keep the working arrangements they got used to during the pandemic. Nearly 42 per cent of those aged 18 to 34 said they’d look for a new job if their employer forced them back to the office, showing how much the younger generations value this new normal. “The pandemic has had a profound impact on the workplace, and many Canadian workers don't want to go back to the way it was before. This is one lasting change, lasting impact of the pandemic," said Sean Simpson, senior vice-president of Ipsos. The affordable housing crisis has a role to play here, too, Simpson explained. Younger Canadians are more inclined to save on commuting costs in hopes of continuing to save and eventually generate enough for a down payment. “Younger people are saying, 'If I can save money by eating at home and by staying at home instead of commuting to work, why wouldn't I do that?’" Read more to learn about which province’s commute was the most dreaded among respondents.  Fixed or variable mortgage? The Bank of Canada’s efforts to cool the housing market are showing some early signs of success this spring. But for those still keen to break into the market, how will rising interest rates affect the kind of mortgage that’s best for you, and how much house you can really afford? Global News spoke to mortgage brokers and economists to track how high interest rates might go and whether a variable or fixed-rate mortgage is the right choice as rates rise. While variable rates have been popular through much of the pandemic when rates were at rock-bottom lows, the “spread” between fixed and variable options has been shrinking as of late, making the decision increasingly murky. Though she says she has no “crystal ball,” mortgage expert Leah Zlatkin with lowestrates.ca told Global News that variable rates will likely remain the cheaper option for a while. But for those fretting about how high the central bank could rate its benchmark rate, paying the “couple hundred dollars extra” per month might be worth the price of predictability, she says. Read more from Global News reporter Craig Lord. ________________________ – THE QUESTION – “I recently came into an extra $25,000 via back pay. I'm 59, planning on retirement at 67. I have about $180,000 left on my mortgage. I'd like to have my mortgage paid off at 67. Should I put that $25K straight to my mortgage, or into my RRSP and then the resultant tax return to my mortgage? I have a fair amount of room in my RRSP.“ — A Money123 reader “This payment will be taxable to you and may push you into a higher tax bracket – possibly the highest tax bracket of your career. This makes an RRSP contribution compelling, because you can shelter the whole $25,000 from tax by contributing it to your RRSP. You may even have the option to transfer it directly, pre-tax, to your RRSP account. Alternatively, the payment will be subject to tax, and you will have less than $25,000 to contribute to your RRSP and will have to wait until next April for a tax refund. ‘Qualifying retroactive lump-sum payments’ may be eligible for special tax treatment. This includes employment income that is ‘received under the terms of an order or judgment of a competent tribunal, an arbitration award, or an agreement to terminate a legal proceeding,’ but not amounts resulting from ‘normal collective bargaining, such as negotiated back pay.’ Basically, CRA will determine if you would have paid less tax had this income been paid during the previous applicable tax years rather than the year you receive it. The lump-sum mortgage payment option is more compelling these days as interest rates are starting to rise. Even if your current mortgage rate is low, no doubt it will be much higher at renewal. You are ultimately deciding between two good choices, so there is no wrong answer here. I would base the decision in large part on your risk tolerance. If you are a conservative investor, the mortgage may be a better choice. If you are an aggressive investor, especially if your fees are relatively low, the RRSP may be a better option, especially if you are in a high tax bracket and expect to be in a lower bracket when you retire.“ -Jason Heath, fee-only, advice-only financial planner, Objective Financial Partners ___________________________ Want your money question answered by an expert? Get in touch! | 
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