Canadian Money Glossary

Canada Revenue Agency. The federal tax authority that collects income tax and administers benefits.

Example: Example: You file taxes with the CRA and receive a Notice of Assessment.

Social Insurance Number. Required to work, file taxes, and access government programs.

Example: Example: Employers need your SIN to issue your T4.

Registered Retirement Savings Plan. Contributions reduce taxable income and growth is tax deferred.

Example: Example: A $5,000 RRSP contribution can lower taxable income by $5,000.

Tax-Free Savings Account. Investment growth and withdrawals are tax free.

Example: Example: You can withdraw TFSA gains without paying capital gains tax.

First Home Savings Account. Contributions are tax deductible and withdrawals for a first home are tax free.

Example: Example: Use FHSA funds for your down payment without tax on withdrawal.

Canada Pension Plan. Payroll deduction that funds retirement benefits.

Example: Example: CPP is withheld from each paycheck.

Employment Insurance. Payroll contribution that can provide income during unemployment.

Example: Example: EI premiums are shown on your pay stub.

Goods and Services Tax / Harmonized Sales Tax added to most purchases.

Example: Example: In Ontario, HST adds 13% to your purchase.

Annual tax slip from your employer showing earnings and payroll deductions.

Example: Example: You need your T4 to file taxes.

Statement from the CRA confirming your tax return and showing your balance or refund.

Example: Example: Lenders often request your latest NOA.

Score that summarizes your credit history and affects loan rates.

Example: Example: A higher score can qualify you for better mortgage rates.

Upfront cash paid toward a home purchase.

Example: Example: Putting 20% down avoids CMHC insurance.

Mortgage default insurance required when down payment is under 20%.

Example: Example: CMHC insurance is added to your mortgage balance.

Qualification test that uses a higher rate to ensure affordability.

Example: Example: You qualify at the benchmark or contract rate + 2%.

Total length of time to pay off a mortgage, often 25-30 years.

Example: Example: A longer amortization lowers payments but increases interest.

Fixed rates stay the same, while variable rates move with the market.

Example: Example: Variable payments can change when prime rate moves.

Immigration, Refugees and Citizenship Canada. Federal department for visas and immigration.

Example: Example: Application fees are paid to IRCC.

Acknowledgment of Receipt. Confirmation that IRCC received your application.

Example: Example: Processing timelines often start from the AOR date.

Electronic Confirmation of Permanent Residence issued through the PR Portal.

Example: Example: You download your eCOPR after confirming your address.

Confirmation of Permanent Residence, a key document to become a PR.

Example: Example: COPR details appear on your eCOPR.

Online portal to confirm address and photo for PR card issuance.

Example: Example: You submit your photo in the PR Portal.

Permanent Resident card used as travel document to return to Canada.

Example: Example: Airlines ask for your PR card when boarding.

Invitation to Apply for permanent residence in Express Entry.

Example: Example: After an ITA, you have a deadline to submit documents.

Comprehensive Ranking System score used to rank Express Entry profiles.

Example: Example: A higher CRS score improves your chance of an ITA.

Provincial Nominee Program that lets provinces nominate candidates.

Example: Example: A PNP nomination adds points to Express Entry.

Labour Market Impact Assessment required for many employer-sponsored jobs.

Example: Example: Some work permits require a positive LMIA.

Post-Graduation Work Permit for eligible international graduates.

Example: Example: PGWP lets you work after completing a Canadian program.

Temporary Resident Visa required to travel to Canada for some nationals.

Example: Example: TRV is different from a study or work permit.

Minimum settlement funds required for some immigration programs.

Example: Example: Proof of funds must be shown with bank statements.

Someone granted the right to live in Canada indefinitely while not a citizen.

Example: Example: A PR can work and study across Canada without restrictions.

Online system that manages applications for skilled-worker permanent residency.

Example: Example: Candidates submit their profile and wait for an ITA via Express Entry.

Person who rents a home or apartment and pays rent to a landlord.

Example: Example: Tenants must follow the rules in the lease agreement.

Owner of a home or apartment who rents it out to tenants.

Example: Example: Landlords must keep the property safe and habitable.

Legal contract between tenant and landlord detailing rent, duration, and rules.

Example: Example: The lease specifies the monthly rent and notice period.

Average expenses for housing, food, transportation, and taxes in a region.

Example: Example: Toronto has a higher cost of living than many smaller cities.

Monthly charges for water, electricity, heating, or internet.

Example: Example: Your landlord may include utility bills in the rent.

Proof of savings required to move to Canada under certain immigration programs.

Example: Example: Federal skilled workers must prove settlement funds when applying.

Percentage of your credit limit that you use, affecting your score.

Example: Example: Keeping utilization under 30% helps boost your credit score.

Loan from a bank to buy real estate, using the property as collateral.

Example: Example: A 25-year mortgage might require a monthly payment of $1,200.

Protection against damage, theft, or liability for your home or car.

Example: Example: Home insurance covers water damage and fire losses.

Flexible credit account that lets you borrow up to a limit and pay interest only on the amount used.

Example: Example: A LOC can cover short-term expenses, but the rate can change.

Home equity line of credit secured by your property.

Example: Example: A HELOC may have a lower rate than unsecured credit, but your home is collateral.

Registered Education Savings Plan used to save for a child s post-secondary education.

Example: Example: Government grants can add to eligible RESP contributions.

Registered Disability Savings Plan for eligible people with disabilities.

Example: Example: RDSP grants and bonds can support long-term savings.

Municipal tax paid by property owners, often included in home affordability calculations.

Example: Example: Lenders include property tax when estimating mortgage affordability.

Monthly fee paid by condo owners for building maintenance, amenities, insurance, and reserves.

Example: Example: A condo fee reduces the mortgage payment you can comfortably afford.

Rules that determine whether Canada views you as a resident for income tax purposes.

Example: Example: Maintaining a home in Canada may keep you a tax resident.