Canadians are quietly losing hundreds a year — here are 6 invisible habits draining your bank account

You know where you owe money, how much your monthly utilities will cost and where to shop for the best deals — and you're probably thinking you’ve got your budget all figured out, right?

In truth, it’s a real challenge to keep track of every dollar you earn and spend — and it’s even harder to make sure it’s always going to the right places. Every account, service and product you use has its own fees and rates and there are new promotions and offers being launched all the time, which can feel quite disorienting when trying to stay on top of ways to maximize your money to its fullest potential.

So every now and then, it pays to keep stock of your automatic payments and to make sure you're paying for services and products you actually want and use. A quick check could help you save hundreds or even thousands each year — enough to bolster your emergency fund, pay off debts faster or move up your retirement date.

To help, we've complied a list of six invisible ways you could be wasting money and how to fix these financial problems.

#1. Unconscious overspending

Canadians are still tapping their debit and credit cards more than ever (1) — and it’s the small, unnoticed purchases that drain budgets fastest. In 2024, Interac reported record growth in contactless payments, with tap transactions up 12% year over year.

To regain control, consider using a budgeting app that connects to Canadian banks. Options include Monarch Money, YNAB, Simplifi, or KOHO’s built-in tracking. These tools categorize spending and flag forgotten recurring subscriptions.

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#2. Extra investing fees

Investing is essential to building wealth and this is key as you should never let your money sit stagnate, particularly if it's sitting in a day-to-day bank account that pays next to nothing in interest. But depending on your broker or investing platform of choice, a range of forgettable fees could be eroding your profits.

The good news is that competition has prompted many brokerages to drop — or even eliminate — many fees. Brokerages that now offer no-commission trades on stocks and exchange-traded funds (ETFs) include National Bank Direct Brokerage, Desjardins Online Brokerage, Questrade, Qtrade and Wealthsimple Trade.

However, you may still pay:

• ECN fees (typically $0.01 to $0.04 per share)
• Currency conversion fees for U.S. trades
• Management expense ratios (MERs) on ETFs and mutual funds

Robo-advisors also vary in what fees are charged. For example:

• Wealthsimple Invest: 0.40% to 0.50% management fee
• Questwealth Portfolios: 0.20% to 0.25% management fee

If you’re still paying high mutual fund MERs (Canada’s average is 1.9%, the highest among developed nations), switching could save thousands over time (2).

Take a moment to consider how much value you’re really getting for that money. If you can’t see the benefit, consider sticking with the cheapest option you can find.

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#3. Inflated insurance rates

It’s easy to set-and-forget all of your insurance policies, but you should always be mindful how much money is leaving your bank account every month in relation to the coverage you need and the premiums that are being charged. That can be deadly to budget, particularly in the current economic environment where insurance premiums in Canada have risen significantly since 2021 due to inflation and higher claim costs. According to the Insurance Bureau of Canada, auto insurance premiums rose 6.2% nationally in 2024 (3).

Are you sure the company that offered you the best coverage for the best price years ago is still the superior choice? Rates change fast, and any loyalty discounts you might be getting by sticking around could pale in comparison to the savings you find elsewhere.

Some experts suggest poking around for better rates at competing companies every 6 to 12 months. That includes car insurance, home insurance and life insurance premiums. If you haven’t already invested in life insurance, remember that term policies are much cheaper than whole or universal life insurance policies (contracts that include an investment portion). For instance, spend a few minutes online with PolicyMe and get an instant term policy quote — plus couples get 10% off in the first year while parents are eligible for $10,000 in free Child Coverage.

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#4. No (or low) interest bank accounts

Banks only flourish because they get to hold on to our hard-earned money. Make sure they’re paying a fair price for the privilege.

Traditional savings accounts from the big banks typically pay a pittance in interest — typically between 0.01% to 0.1%.

Online banks don’t have brick-and-mortar locations or other pricey overhead costs, and typically offer better savings earnings rates as a result. For instance, EQ Bank offers around 2.50% to all its customers signed up for its high-interest savings account — and you won’t pay any monthly fees, either. Set up an automatic payroll deposit and your savings rate could jump up to 3.50% on all account deposits — and you still won't pay monthly fees. Other options include Simplii Financial, with rates between 0.4% and 0.5% and Tangerine's promotional rate that rises to 5.75%, before dropping to 1.00% after a few months. Always check for promotional expiry dates and confirm ongoing interest rates.

#5. High mortgage interest

No one actually likes their mortgage, so don’t act like you’re attached to it. If you can switch to a better loan, do it. This is particularly true as we approach a New Year. Mortgage rates peaked in 2023, but they declined throughout 2024 and again in 2025 as the Bank of Canada cut its policy rate to 2.25% in October 2025 before holding steady in December (4).

Don’t miss out on an opportunity to refinance and potentially slash your monthly payments by hundreds of dollars. For instance, take five minutes to complete a mortgage account review with Homewise and you could find a much cheaper rate. To simplify this process, use the company's free online comparison services to track down the best offers from dozens of lenders.

If you locked in a high rate during 2022–2023, refinancing may now save hundreds per month — depending on penalties. Comparison sites such as Homewise show current national average rates hovering around:

• 5-year fixed: 4.29% to 4.59%
• 5-year variable: 5.15% to 5.40%

Just be sure to check your mortgage penalty before switching — fixed-rate penalties at big banks can be high.

So long as you’ve got good credit and minimal debt, you should qualify for the lowest rates available. Check your credit score before you get started.

#6. Shopping without getting rewarded

Even when you’re spending money, you should be making money. Too many people leave cash on the table when they could get rewarded for buying items they want anyway.

According to a 2024 Leger report (5), fewer than half of Canadians maximize everyday reward programs. Top Canadian reward systems now include:

• PC Optimum (groceries, pharmacy, fuel) — a popular loyalty program recently bought by EQ Bank
• Aeroplan (travel, credit card multipliers)
• Scene+ (groceries, travel, restaurants)
• Rakuten Canada (cashback on online shopping)
• Ampli by RBC (cashback for everyday purchases)

Using a rewards or cashback credit card — while paying the balance monthly — can generate hundreds of dollars in value each year.

Article sources

We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.

Interac (1); Morningstar Global Investor Experience 2024 (2); ICBC (3); Bank of Canada (4); Leger (5)