Harmer Wealth Management I Financial Planning I Insurance I Mortgages

06/04/2026

Principal Residence to Rental Conversion: What You Should Know Before You Make the Switch

Thinking about turning your home into a rental?
In Canada, converting your principal residence into a rental property can trigger tax implications — even if you do not actually sell the home.

When a property changes from personal use to rental use, CRA may treat it as though you sold the property at fair market value and immediately bought it back at that same value. This is called a change in use or deemed disposition.

Simply put: there may be tax reporting required, and potentially tax consequences, even though no sale took place.

A few key things to consider before making the switch:
• What is the fair market value of the property on the date of conversion?
• Will the principal residence exemption shelter some or all of the gain?
• Should a subsection 45(2) election be considered?
• Will you be buying or designating another principal residence?
• How will rental income and expenses be tracked and reported?
• Should you avoid claiming CCA/depreciation?
• Is the property being used as a long-term rental or short-term rental?

One of the biggest planning points is the possible 45(2) election, which may allow you to defer the deemed disposition and, in certain cases, continue treating the property as your principal residence for up to four additional years.

But — and this is the important part — these rules are highly fact-specific. The right strategy depends on your timeline, future plans, property value, rental structure, ownership, and whether you may eventually move back in or sell.

Before converting a principal residence into a rental, always connect with a qualified tax advisor or accountant. A small decision today can have a meaningful impact later.
Smart planning before the switch can save a very expensive “oops” down the road.

Find out more at HarmerWealth.com

06/03/2026

When a mortgage feels impossible, the right team makes all the difference. 🏡

Nothing means more to us than hearing how we helped a family finally cross the finish line — especially on a deal that others couldn't make work.

Here's what A.B. had to say:

"We had a very complicated mortgage situation that we'd been trying unsuccessfully to get sorted prior to working with them. From the second we spoke with Chad, he seemed confident he could make the deal work. They checked in constantly and made us feel comfortable throughout the entire process. They secured the mortgage we needed and we couldn't be happier. Jordan handled the back and forth and was there every single time we needed her. If anyone is looking for a team that can help with all their mortgage needs, I couldn't recommend these guys enough. 5 stars doesn't feel like enough." ⭐️⭐️⭐️⭐️⭐️

Complicated situation? That's exactly where we do our best work. Whether it's your first mortgage, a refinance, or a deal that's been turned down elsewhere — let's talk.

📞 1.800.723.2138
📧 [email protected]
🌐 HarmerWealth.com

Complete Financial Planning For A Secure Future.

05/13/2026

We spend decades building wealth so we can enjoy the life we've worked for. But none of it matters if our health can't keep up.

Healthcare in Canada is world-class — but it's reactive. You wait until something goes wrong.

What if you didn't have to?

Through our insurance and benefits offerings, Harmer Wealth has partnered with leading private medical providers to give our clients access to a different kind of care. The proactive kind. The kind that looks for what's coming before it arrives.

Who is this for?
🍁 Retirees losing their employer health benefits and wondering "what now?"
🍁 Pre-retirees who want a private layer of care built into their plan
🍁 Business owners and professionals without group coverage
🍁 Families who want faster answers, deeper screening, and continuity of care
🍁 Anyone who values their health the way they value their portfolio

What's included:
🍁 Comprehensive annual health assessments — dozens of screenings and 100+ biomarkers reviewed in a single day, with same-day results and a personalized action plan
🍁 Early detection focus — catching the things that matter (cancer, heart disease, diabetes) before symptoms arrive
🍁 Specialist visits + advanced diagnostics like MRI, CT, and PET scans
🍁 Expert second opinions from internationally renowned physicians — no deductible
🍁 Concierge-style navigation through every appointment and referral
🍁 Worldwide provider choice — apply up to age 75, renewable beyond
🍁 A preferred client rate negotiated exclusively for Harmer Wealth clients

This isn't about replacing OHIP. It's about adding a proactive layer to it — so your health plan finally matches the rest of your financial plan.

Because a strong portfolio means nothing without the health to enjoy it.

Send us a DM with "ACCESS," call 1.800.723.2138, or visit harmerwealth.com to book a complimentary 15-minute conversation. We'll walk you through the program and unlock your preferred Harmer Wealth client pricing.

✉️ [email protected]

05/07/2026

Most incorporated business owners in Canada are sitting on a number their accountant rarely talks about — and it could pay them tax-free. 👇

It's called the Capital Dividend Account (CDA) — and no, it's not a loophole. It's written right into the Income Tax Act.

Here's the part that surprises people:

Not all dollars inside your corporation are taxed the same on the way out to you.

Some can flow to shareholders 100% tax-free — when the structure is right.

So what is the CDA?

Think of it as a notional "tax-free bucket" the CRA lets your private corporation track. It doesn't sit in a bank account. It lives on paper. But when there's a positive balance, your corporation can declare a capital dividend — and that money lands in the shareholder's hands without a single dollar of personal tax.

What can build up CDA balance?

→ The non-taxable half of capital gains
→ Life insurance proceeds (above the policy's ACB) on a corporately-owned policy
→ Capital dividends received from another corporation

Why this matters for business owners:

Most owners default to salary or taxable dividends and stop there. But if your corporation has ever:

• sold an investment at a gain
• sold real estate held inside the corp
• held a corporately-owned life insurance policy
• sold goodwill on the sale of a business

…there may be a CDA balance quietly sitting there — waiting to be used.

Miss it, and those dollars eventually leave the corporation as fully taxable dividends. Use it strategically, and the same dollars come out tax-free.

This is one of the most overlooked tools in Canadian corporate tax planning — and one of the easiest to get wrong if it's filed incorrectly.

If you own an incorporated business, an investment holdco, or a professional corporation, this is worth a 15-minute conversation. We'll tell you what's actually in your CDA — and what it could be worth to your family.

📩 [email protected]
📞 1.800.723.2138
🌐 harmerwealth.com

This post is for educational purposes only and is not tax or legal advice. Speak with a qualified advisor before acting.

05/06/2026

There’s a big difference between getting advice here and there, and having a real plan that grows with you over time.

This testimonial means a great deal to our team because it speaks to exactly what we aim to do every day: help clients connect the dots across their financial life so they can move forward with clarity and confidence.

From student debt, to investing, to buying a first home, to planning for retirement and building long-term wealth — financial decisions rarely happen in isolation. The goal has always been to look at the full picture and help each piece work together.

We’re incredibly grateful for the trust placed in our team over so many important life stages, and for words like these. It’s an honour to be part of that journey.

Thank you for the trust, the kind words, and the opportunity to help build something meaningful.

04/29/2026

I spent the day in Ottawa at Canada Life’s Advisor Roadshow with a great group of investment leaders, portfolio managers, and minds in our industry.

As expected, the major conversations were around AI, gold, Iran, inflation, and interest rates.

Fair enough. Those are the topics most investors are hearing about right now.

AI continues to be one of the more exciting pieces of our future. We are seeing potential applications in biotechnology, new molecule discovery, manufacturing automation, energy grid management, investment modelling, financial planning, and countless other areas.

But the more I learn about AI, the more I come back to the same view I have had for a while.

AI is not replacing the human side of advice. If anything, I believe it gives professionals in many industries more ability to focus on what actually matters.

In finance, health care, planning, and business, that still comes down to the personal relationship. The human connection. Understanding someone’s full picture. Their family, their business, their concerns, their goals, and sometimes simply being able to reassure them when the headlines feel overwhelming.

That part cannot be automated.

On the market side, there is no shortage of noise right now.

Geopolitical tension continues to create volatility. Some days it feels like peace and resolution are a long way off. But my view is that the world’s largest economies still have a strong incentive to find stability. Even the U.S. needs resolution to protect its own economy from burning too hot in the wrong places. Concessions continue to be made, and while nothing is guaranteed, I do believe this can be resolved to the best of everyone’s ability in the near future.

Inflation is the other major concern.

It feels like we just came out of a very hot inflationary period, with central banks around the world raising interest rates to cool things down. We felt that everywhere: mortgages, real estate, business lending, hiring, fuel, groceries, and day-to-day household cash flow.

Now, with oil prices moving higher due to Middle Eastern conflict, it is natural that people are talking about inflation and rates again.

But I think it is important to separate the inflation we saw after COVID from the inflation pressure we are seeing today. COVID created a much stickier inflation problem. Supply chains, labour, stimulus, demand, housing, and consumer behaviour all collided at once.

What we are seeing now has the potential to normalize if conflict settles and energy pressures ease. Not overnight, but over time.

For what it’s worth, central banks are not going to turn around and start hiking rates aggressively without giving the data time to play out.

Gold and precious metals were also a major topic.

I do believe commodities, gold, and hard assets have a place in most portfolios to some degree or another. They can play an important role as a hedge, especially during periods of inflation, uncertainty, or geopolitical stress.

That said, my long-term thesis still leans toward owning strong underlying businesses.

Businesses that provide a real product or service. Businesses with revenue, margins, cash flow, leadership, and the ability to grow value over time.

As a business owner myself, I understand how companies build value, and how that value can ultimately translate into greater value for owners and shareholders.

Gold has had an incredible run. Commodities may continue to matter if deglobalization remains a long-term theme. But for most long-term investors, I still believe the proof is in the pudding when it comes to quality businesses and consistent growth over time.

Not investment advice, just a reflection after a full day of great conversation.

A Bowmanville financial planner reflects on AI, inflation, gold, geopolitical risk and interest rates after Canada Life’s Advisor Roadshow in Ottawa.

04/05/2026

When it comes to healthcare, more Canadians are not just thinking about coverage. They are thinking about access, timing, and options.

That is why we introduced proactive healthcare solutions for our clients and their families.

Depending on the plan, this may include:• second opinions from leading doctors worldwide• access to top international specialists and centres of excellence like Mayo Clinic• comprehensive annual health assessments for those who want to take a proactive approach to their health

For many people, this is not only about themselves. It is about their spouse, their children, and their aging parents.

Better healthcare decisions often start with better access to information, experts, and options.

Advanced and proactive healthcare for you and your loved ones is closer than you think.

Interested in what this could look like for you? Send us a DM, email [email protected], or type PROACTIVE in the comments.

Life, Disability, and Health License Number: 19174841 (Chad Harmer)

03/23/2026

There is really no way around it: what is happening overseas right now is incredibly unnerving. That is true on a human level first, and on a financial level second. I do not think anyone should pretend otherwise.

From an investment perspective though, this is exactly where perspective matters most. BlackRock’s work looking at 68 geopolitical risk events since 1962 found that the average market response to unexpected shocks has historically been relatively modest and short-lived. J.P. Morgan’s work on 36 major geopolitical events found that markets typically underperform in the first three months after an event, but six-month and twelve-month returns were identical to periods without a notable geopolitical event. RBC Wealth Management’s review of 20 major post-World War II military conflicts found the S&P 500 fell about 6% on average from initial shock to trough, and in 19 of the 20 events, it got back to even in roughly 28 days.

And today is already a perfect example of how quickly things can change. On Monday morning, March 23, before the market open, futures tied to the S&P 500 and Dow were up about 1.3%, Nasdaq futures were up 1.2%, and oil dropped sharply after reports of progress in Iran-related talks and a pause in further strikes.

This is why fear-based selling is so dangerous. The headlines get loud, prices move quickly, and people start to feel like they need to do something. But the underlying companies inside diversified portfolios are still producing revenue, earnings, dividends and cash flow. Bonds are still paying interest. The market may reprice fear quickly, but fundamentals do not disappear overnight.

I started my career in 2008, when the S&P 500 ultimately fell 57% from peak to trough during the financial crisis. I watched people sell, lock in losses, and regret it. I also watched people stay disciplined and come out dramatically further ahead over time. History is not a guarantee, but it is a guide, and it has been teaching the same lesson for a very long time.

On the mortgage side, I completely understand why inflation is still a touchy subject, especially for anyone in a variable-rate mortgage after the last several years. The Bank of Canada said on March 18 that the war in the Middle East has increased volatility in energy prices and financial markets, and that higher gasoline prices will push up total inflation in the coming months. Even so, it held the policy rate at 2.25%. The Bank has also been clear that it cannot and should not react to every short-term blip, because rate changes take time to work through the economy.

So no, this does not feel good. But if your financial plan has not changed, your strategy probably should not either. This is a sit-tight moment, not a jump moment. Reacting to short-term fear with long-term money decisions is still fear, even when the headlines feel justified.

We are always here for you.
--Chad Harmer

03/14/2026

To our clients, friends, and community,

A lot of people are feeling a bit whiplashed right now.

Markets are reacting to global headlines. Oil is back in the conversation. Mortgage decisions matter a lot more again. Real estate is shifting in waves.

So what should you be doing right now?

Here’s my honest answer: this is not the time for panic. It is the time for review.

Not every headline deserves a portfolio trade.
Not every rate move deserves a mortgage overhaul.
Not every shift in real estate deserves a rushed decision.

But this is a very good time to review the full picture.

On the investment side, I am still constructive, but selective.

I continue to see real opportunity in clean nuclear energy and power infrastructure because AI and digital growth need reliable energy.

I still like commodities as part of the conversation because inflation has a habit of lingering longer than expected.

I still like health science and biotech because an aging population and improving medical innovation are not temporary stories.

And I remain very interested in AI and cybersecurity, especially where they improve productivity, strengthen operations, and solve real business problems.

On the mortgage side, I think many people should be taking a fresh look right now, especially if they are in a variable-rate mortgage or carrying other variable debt. Rising oil prices can create inflation pressure. At the same time, fixed mortgage rates have become competitive enough that the lock-in conversation deserves a review. Not as a blanket move. As a smart one.

On real estate, I believe this year will move in waves. Early spring still favours sellers in many pockets. Late April into early June could bring a stronger wave of listings, which may create more choice and more negotiating room for move-up buyers and investors.

The bigger point is this:

Investments, planning, mortgages, and real estate are not separate conversations. They are one conversation. Or at least they should be.

If you have been wondering whether it is time to review your plan, your mortgage, your investment mix, or your next move in real estate, the answer is probably yes.

— Chad Harmer

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02/24/2026

Ever wish you could access capital without having to sell investments at the worst possible time?

That’s the idea behind a “family bank” strategy — Canadian version: permanent life insurance that builds cash value over time, paired with proper ownership and beneficiary planning. In the right situation, that value may be accessed through policy loans or collateral lending to create flexibility for opportunities, investing, or business needs.

Important CRA/real-world notes:
• Loans have interest costs
• Interest deductibility depends on how funds are used
• If the policy is surrendered or collapses, taxes can apply
• At death, outstanding loans are typically repaid from the proceeds first

If you’d like us to confirm whether this fits your plan, book a brief, no-obligation consultation at HarmerWealth.com.

Educational only. Not tax or legal advice. Insurance is subject to underwriting and suitability.