Your All-in-One Canadian Financial Dictionary
Line of credit
A flexible loan you can borrow from anytime, up to a set limit. You’re only charged interest on the money you borrow, not the total amount available. Example: If your limit is $10,000 and you borrow $2,000, you only pay interest on the $2,000.
Loan
Money you borrow and agree to pay back over time, with interest.
Maturity
The end date of a loan or investment. This is when it’s fully paid off or when you can access or renew your investment.
Mobile banking
Managing your money through your bank’s app like checking balances, paying bills, or sending money right from your phone.
Money order
A prepaid form of payment, similar to a cheque. Since you pay upfront, it’s guaranteed and won’t bounce. Often used when cash isn’t practical.
Mortgage
A loan used to buy a home. The property itself is used as security, so if you don’t repay, the lender can take and sell it.
Mortgage prepayment
Extra payments you make on your mortgage to pay it off faster and reduce interest over time.
Mutual fund
An investment where your money is pooled with others and managed by professionals. It spreads your money across different assets to reduce risk.
Net earnings or pay
Your take-home pay, what’s left after taxes and deductions are removed from your income.
Non-redeemable investment
An investment you can’t cash out early. Your money stays locked in until the term ends.