Your All-in-One Canadian Financial Dictionary
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.
Correction
A fix made to a transaction on your account. This could be reversing an error or adjusting the amount after a mistake.
Credit bureau report
A detailed report of your borrowing and repayment history. Lenders use it to decide if they should approve you for credit.
Credit card
A card that lets you borrow money to make purchases now and pay it back later, usually with interest if you don’t pay in full.
Credit check
When a lender looks at your credit report to decide if they can trust you to borrow money.
Credit history
Your track record of borrowing and repaying money over time. A strong history makes it easier to get approved for loans.