Everything you need to understand money in Canada.

Tax-Free Savings Account

A Canadian registered account where your investments grow and are withdrawn completely tax-free.

Registered Retirement Savings Plan

A tax-deferred retirement account - contributions reduce your taxable income now, withdrawals are taxed later.

First Home Savings Account

The most powerful account for first-time homebuyers - combines RRSP deductibility with TFSA tax-free withdrawal.

Registered Education Savings Plan

A tax-deferred savings account for your child's post-secondary education that comes with free government grants.

Registered Disability Savings Plan

The most generous registered account in Canada - up to $4 in government grants for every $1 you contribute.

Registered Retirement Income Fund

What your RRSP becomes when you retire - you must start making mandatory withdrawals.

Locked-In Retirement Account

Where pension money goes when you leave an employer with a pension plan.

High-Interest Savings Account

A savings account that pays a much higher interest rate than big bank savings accounts.

Guaranteed Investment Certificate

You lock in money for a fixed term (3 months to 5 years) at a guaranteed interest rate.

Exchange-Traded Fund

A basket of stocks or bonds that trades on a stock exchange like a single share.

A pooled investment managed by a fund company. In Canada, usually expensive.

Management Expense Ratio

The annual fee on an investment fund, expressed as a percentage of assets.

All-in-One Asset Allocation ETF

An ETF that holds a complete diversified portfolio - auto-rebalanced, one ticker.

An automated investment service that builds and manages a low-cost ETF portfolio for you.

Marginal Tax Rate

The tax rate on your NEXT dollar of income - NOT the average rate on all your income.

Effective Tax Rate

Your average tax rate across all your income - total tax divided by total income.

Progressive Tax Bracket

A range of income taxed at a specific rate. Canada has federal + provincial brackets stacked together.

Basic Personal Amount

An income amount every Canadian can earn before paying any federal tax.

The profit you make when you sell an investment for more than you paid. Only 50% is taxable, at any amount.

Canadian Dividend Tax Credit

A tax credit that makes Canadian dividends much lower-taxed than interest or regular income.

Canada Pension Plan

The government retirement pension you contribute to through every paycheque.

Enhanced CPP

A second CPP tier on higher incomes ($71k-$81k), introduced in 2024.

Old Age Security

A government pension based on how long you've lived in Canada, not on contributions.

OAS Recovery Tax

If your retirement income is above $93,454 (2025), your OAS is reduced by 15 cents per dollar over.

Guaranteed Income Supplement

A top-up for low-income seniors receiving OAS - income-tested monthly.

Home Buyers' Plan

A program letting first-time homebuyers withdraw up to $60,000 from their RRSP tax-free for a home.

Mortgage Default Insurance

Required mortgage insurance when your down payment is less than 20%. Protects the LENDER, not you.

B-20 Mortgage Stress Test

Federal rule requiring lenders to qualify you at a higher rate than your actual contract rate.

Gross/Total Debt Service Ratios

Ratios lenders use to decide how much mortgage you qualify for.

On a variable mortgage: the rate at which your monthly payment no longer covers the interest.

Canada Deposit Insurance Corporation

Federal insurance on bank deposits - up to $100,000 per category per member institution.

Canadian Investor Protection Fund

Protects your investments if your broker goes bankrupt - up to $1M per account.

Canada Education Savings Grant

A 20% government match on RESP contributions - up to $500/year, $7,200 lifetime per child.

Marginal Rate vs Effective Rate

The single biggest source of tax confusion in Canada.

Debt Avalanche

A debt payoff strategy: pay minimums on everything, throw every extra dollar at the HIGHEST-interest debt first.

Debt Snowball

A debt payoff strategy: pay minimums on everything, throw every extra dollar at the SMALLEST balance first.

The Canadian passive investing philosophy: buy low-cost index ETFs and hold forever.

Dollar-Cost Averaging (DCA)

Investing a fixed amount on a regular schedule, regardless of price.

Portfolio Rebalancing

Periodically adjusting your portfolio back to your target allocation.

T1 General Return

Your annual Canadian personal income tax return - filed by April 30.

Statement of Remuneration Paid

The tax slip your employer gives you showing your annual employment income and deductions.

CRA NETFILE

CRA's secure online system for filing tax returns electronically.

CRA Auto-Fill My Return

A CRA feature that automatically populates your tax return with slips CRA already has.

Canadian Credit Score

A number (300-900) representing your creditworthiness. Canada has two bureaus: Equifax and TransUnion.

Credit Utilization Ratio

The percentage of your available credit you're using. Aim for under 30%.

Trailing Commission

A hidden ongoing fee paid to your mutual fund salesperson - every year you hold the fund.

Term vs Whole Life Insurance

Term life = cheap, pure insurance for a set period. Whole life = expensive, permanent, insurance + investment hybrid.

Estate Administration Tax

A provincial fee charged to administer an estate through the court.

Named Beneficiary

The person named to receive an account (RRSP, TFSA, life insurance) when you die.

Health Spending Account

An employer-provided account for medical expenses not covered by regular insurance - not a tax shelter.

Adjusted Cost Base

The tax-relevant cost of an investment - what you paid, adjusted for things like return of capital.