Glossary of Financial Terms

Navigating your financial planning and goals may require learning new definitions. This glossary can assist with new words and meanings, to make planning and financial conversations easier.

  • Amortization: Amortization is the repayment of debt. The amortization period is the length of time it takes for a borrower to repay a loan (plus interest).
  • Credit Rating: A credit rating is a score used by lenders, such as banks, to determine how risky it is to lend an individual money or, in other words, to assess creditworthiness. It is based on previous borrowing history.
  • Credit Report: Your credit report is a summary of your credit history and is important for your financial borrowing options.
  • Interest Rate: Interest is the cost of borrowing money, and it is charged as a percentage rate of the amount borrowed, typically charged on a monthly basis.
  • Line of Credit: A line of credit is a loan arrangement which allows a student to borrow up to a fixed amount of money. Student lines of credit generally have lower interest rates than other forms of debt such as credit cards. Students are charged interest only on the outstanding borrowings.
  • National Student Loans Service Centre (NSLSC): The NSLSC administers student loans.
  • Ontario Student Assistance Program (OSAP): Ontario government’s student financial aid program which consists of grants and loans.
  • OSAP Definitions: A collection of common OSAP terms and their definitions.

Disclaimer: Please note that financial resources are provided for educational purposes only. Any information and resources provided do not substitute for professional advice.