Your All-in-One Canadian Financial Dictionary
Canada Pension Plan (CPP)
A government program that pays you income when you retire, or supports you (or your family) if you become disabled or pass away. You pay into it while you work in Canada.
Canada Revenue Agency (CRA)
The federal government agency is responsible for taxes in Canada, including collecting them, processing returns, and enforcing tax laws.
Capital gain or loss
The profit (gain) or loss you make when you sell something for more or less than you paid for it. This often applies to investments like stocks or property.
Cash interest
Interest charged right away when you take cash from your credit card (like ATM withdrawals or balance transfers). There’s no grace period, it starts building from day one.
Cheque
A written instruction telling your bank to pay someone from your account. It’s less common today but still used for some payments.
Closed mortgage
A mortgage with limits on how much extra you can pay off each year. If you go over those limits, you’ll pay a penalty. In exchange, you usually get a lower interest rate.
Closing costs
Extra costs you pay when buying a home, on top of the purchase price. This can include legal fees, inspections, and land transfer taxes.
Co-applicant
Someone who applies with you for a loan or credit product. You both share equal responsibility for paying it back.
Convertible mortgage
A flexible mortgage that lets you switch to a longer-term option without penalties. People often use this when they expect interest rates to drop.
Corporation
A business that is legally separate from its owners. This means the company can earn money, owe money, and be taxed on its own.