Newcomer Glossary

Key financial terms explained in plain language for newcomers to Canada.

A 9-digit number required to work in Canada and access government programs. Apply at Service Canada.

A number from 300-900 that shows how reliably you pay back money you borrow. Lenders use it to decide if they'll approve you for credit.

A detailed record of your borrowing history, including loans, credit cards, and payment history. Maintained by Equifax and TransUnion.

Organizations (Equifax and TransUnion in Canada) that collect and maintain credit information about individuals.

A credit card backed by a cash deposit. If you deposit $500, that becomes your credit limit. Good for building credit.

A standard credit card that doesn't require a deposit. Typically requires existing credit history to qualify.

A preliminary check that estimates how much you can borrow, without affecting your credit score. Not a guarantee of final approval.

The percentage of your available credit that you're using. Keeping it under 30% is recommended for a healthy credit score.

When a lender checks your credit report for a loan application. Too many can temporarily lower your score.

A credit check that doesn't affect your score, like checking your own credit or pre-approval offers.

A nationally recognized certification for skilled tradespeople in Canada. Allows you to work across all provinces.

The total amount of money needed to cover basic expenses like housing, food, transportation, and utilities in a given area.

Money paid upfront to reserve something, like a rental property. Usually refundable if you fulfill the agreement.

The upfront portion of a major purchase (like a home) that you pay from your own savings. The rest is typically financed.

Registered Retirement Savings Plan. Contributions are tax-deductible, but withdrawals are taxed as income.

Tax-Free Savings Account. Contributions aren't tax-deductible, but investment growth and withdrawals are tax-free.

Gross/Total Debt Service ratios. Used by lenders to determine how much you can afford to borrow based on your income.

Special banking products designed for newcomers, often with waived fees and credit-building options.