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Glossary term
GIC — Guaranteed Investment Certificate
Guaranteed Investment Certificate — a deposit product with guaranteed return of principal + fixed interest over a term (30 days to 5 years). CDIC-insured up to $100,000 per institution. Interest is taxed yearly as ordinary income (not capital gain) — so it's more efficient inside a TFSA/RRSP. Comes in cashable and non-redeemable variants.
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CMHC Mortgage Default Insurance
Mortgage default insurance required when your down payment is under 20% of the home price (a high-ratio mortg…
Amortization vs Term
Amortization is the full payoff period of a mortgage (typically 25-30 years). The term is how long your curre…
TFSA
Canadian registered account where investments grow tax-free and withdrawals are tax-free. 2026 limit: $7,000/…
RRSP
Tax-deferred retirement account: contributions deduct from income, grow tax-free until withdrawal. 2026 limit…
FHSA
Hybrid TFSA+RRSP for first home purchase. $8,000/year limit, $40,000 lifetime. Contributions deduct from inco…
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