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Cross-Border Lending Dictionary: Canada ↔ U.S.
108 Canadian private lending terms paired with their closest U.S. equivalents, and what actually differs in practice. Search a term from either country, or switch the direction.
By Jasmine Daya, Founder and CEO · Current as of Oct 22, 2026
How to use this dictionary
Canadian and American lenders often use different words for the same thing, and the same word for different things. Each table pairs the Canadian term with its closest U.S. equivalent and notes what actually differs in practice.
Canadian examples default to Ontario and British Columbia; U.S. rules vary state by state. Dated rules were checked against current sources as of October 22, 2026 (see Sources). This is general information, not legal, tax or securities advice for any specific transaction.
Changing now: dates every cross-border lender should know
- January 1, 2027Canada (federal)The ban on non-Canadians buying residential property expires unless Ottawa acts. A federal review is underway and no decision had been announced as of October 22, 2026. Provincial foreign buyer taxes are unaffected.
- October 13, 2026British ColumbiaThe Mortgage Services Act came into force, replacing the Mortgage Brokers Act. Registration became licensing, with separate categories including mortgage lending.
- March 19, 2026United States (federal)A federal court vacated FinCEN's Residential Real Estate Rule weeks after it took effect on March 1, 2026. Reports are not required while the order stands; FinCEN's appeal to the Fifth Circuit is pending.
- January 1, 2025Canada (federal)Criminal interest rate cut to 35% APR, with tiered exemptions for commercial loans (see Regulators and licensing).
- October 11, 2024Canada (federal)Mortgage administrators, brokers and lenders became FINTRAC reporting entities.
108 entries
1. Regulators, licensing and compliance
Canada licenses mortgage professionals province by province, while the U.S. licenses state by state through a shared national system (NMLS). Whether a U.S. loan is “business purpose” or “consumer purpose” often decides whether a license is needed at all.
| Canada | U.S. equivalent | What differs |
|---|---|---|
| Provincial mortgage regulator (FSRA in Ontario, BCFSA in B.C.) | State regulator (Department of Financial Institutions, Banking, Real Estate or Corporations, depending on the state) | Canada: one regulator per province. U.S.: each state has its own agency, rules and fees, coordinated through NMLS. |
| Mortgage Brokerages, Lenders and Administrators Act, 2006 (Ontario); Mortgage Services Act (B.C., in force since October 13, 2026, replacing the Mortgage Brokers Act) | State mortgage licensing statutes plus the federal SAFE Act | B.C.’s new Act creates four licensed activity categories: dealing in mortgages, trading in mortgages, administering mortgages and mortgage lending. |
| Mortgage brokerage license | Mortgage broker or mortgage lender license (state) | In Ontario, a lender carrying on the business of lending on real estate security must be licensed as a brokerage unless an exemption applies; private lenders who lend only through a licensed brokerage generally need no license. U.S. states often license business-purpose lenders directly. |
| Mortgage agent Level 1 / Level 2 (Ontario); mortgage broker under B.C.’s MSA (formerly “submortgage broker”) | Mortgage Loan Originator (MLO) | U.S. MLOs need NMLS registration, 20 hours of pre-licensing education, a national exam and state-specific requirements under the SAFE Act. |
| Principal broker | Qualifying individual / designated broker / branch manager | Same idea: the licensed person accountable for the firm’s compliance. |
| Mortgage administrator license (Ontario); administering mortgages license (B.C. MSA) | Loan servicer license | U.S. servicing is licensed separately in many states. |
| OSFI (federal bank regulator) | OCC, FDIC, Federal Reserve | Mostly relevant for bank lenders, not private lenders. |
| FCAC (Financial Consumer Agency of Canada) | CFPB (Consumer Financial Protection Bureau) | The CFPB has much broader rule-making and enforcement power over consumer mortgages. |
| FINTRAC | FinCEN | Both run anti-money-laundering reporting. Canadian mortgage administrators, brokers and lenders have been FINTRAC reporting entities since October 11, 2024. FinCEN’s residential real estate reporting rule was vacated by a federal court in March 2026; FinCEN’s appeal is pending. |
| PCMLTFA (Proceeds of Crime (Money Laundering) and Terrorist Financing Act) | Bank Secrecy Act (BSA) | Similar know-your-client, record-keeping and suspicious-transaction duties. Most U.S. non-bank private lenders are not yet subject to full BSA programs. |
| Criminal interest rate (Criminal Code s. 347) | State usury laws | Canada: one national ceiling, 35% APR since January 1, 2025. Loans to non-individual borrowers for a business purpose get relief: over $10,000 up to $500,000 are capped at 48% APR, and above $500,000 have no cap. U.S.: each state sets its own caps; business-purpose loans are often exempt. |
| Interest Act (federal) | Truth in Lending Act (TILA) / Regulation Z | Canada’s Act governs how rates are stated (s. 4, s. 6), bars higher interest on arrears (s. 8) and allows prepayment after 5 years (s. 10). TILA governs consumer disclosures (APR, Loan Estimate); business-purpose loans are largely exempt. |
| Cost of borrowing disclosure (provincial) | Loan Estimate and Closing Disclosure (TRID) | U.S. consumer forms are standardized and timed by federal rule. |
| B-20 guideline / Minimum Qualifying Rate (stress test) | Ability-to-Repay (ATR) / Qualified Mortgage (QM) rules | Both test whether a borrower can afford the loan; neither generally applies to private business-purpose lending. |
2. Security documents, title and closing
In Canada a real estate lawyer (or a notary in Quebec and B.C.) typically runs the closing. In the U.S., escrow and title companies usually do, with attorneys required only in some states.
| Canada | U.S. equivalent | What differs |
|---|---|---|
| Charge / mortgage (Ontario uses “charge”) | Mortgage or deed of trust | Many U.S. states, including California, Texas and Virginia, use deeds of trust. These add a neutral trustee and allow non-judicial foreclosure. |
| Chargor / mortgagor | Mortgagor / trustor / borrower | Same role, different label. |
| Chargee / mortgagee | Mortgagee / beneficiary / lender | Under a deed of trust, the lender is the “beneficiary.” |
| Land titles registry (Teranet/ONLAND in Ontario, LTSA in B.C.) | County recorder’s office | Canada’s land titles system guarantees title from the register. U.S. recording only gives notice, so title insurance does the heavy lifting. |
| Registration | Recording | Same function: putting the security on public record to establish priority. |
| PIN (Property Identifier Number) / PID (B.C.) | APN (Assessor’s Parcel Number) | Both identify the parcel; U.S. legal descriptions are also critical. |
| Title insurance (common, sometimes optional) | Lender’s title policy (ALTA form, near universal) | U.S. lenders almost always require a lender’s policy. Canadian lenders often take title insurance too, but the land titles register itself is the primary protection. |
| Real estate lawyer’s trust account | Escrow account / escrow agent | Neutral holding of funds until conditions are met. |
| Statement of adjustments / lender’s direction re funds | Settlement statement / Closing Disclosure | U.S. consumer loans use the federal Closing Disclosure; business loans use an ALTA settlement statement. |
| First / second charge | First / second (junior) lien | Same priority concept. |
| Postponement | Subordination agreement | A lender agrees to move behind another lender. |
| Discharge of charge | Release / satisfaction of mortgage; reconveyance (deed of trust) | Removing the security once paid. |
| General Security Agreement (GSA) + PPSA registration | Security agreement + UCC-1 financing statement | Security over personal property. Canada uses provincial Personal Property Security Acts; the U.S. uses UCC Article 9 filed with the Secretary of State. |
| Guarantee | Guaranty | Same concept; U.S. documents often say “guaranty.” |
| Construction lien (Ontario) / builders’ lien (B.C.) | Mechanic’s lien | Contractor’s lien for unpaid work. These liens can take priority over construction-loan advances, so lenders check for them before each draw. |
| Holdback | Retainage | Portion of construction payments withheld until completion. |
| Land transfer tax | Transfer tax / documentary stamp tax | Rates and who pays vary widely; some U.S. states also tax recorded mortgages. |
3. Loan structure, pricing and underwriting
Canadian mortgages separate the term (how long the rate is locked) from the amortization (how long to pay off). The standard U.S. product is a 30-year fixed loan where the two are the same. Short-term, interest-only private loans look similar in both countries.
| Canada | U.S. equivalent | What differs |
|---|---|---|
| Private lender | Private money lender / hard money lender | “Hard money” is common U.S. slang; Canadians rarely use it. |
| B lender / alternative lender | Non-QM lender | The tier between banks and private money in both markets. |
| Term (e.g., 1, 3 or 5 years) | Loan term / maturity | Canadian loans renew at the end of the term; U.S. loans usually run to full maturity. |
| Amortization | Amortization | Canada: often 25–30 years over a shorter term. U.S.: usually equal to the term. |
| Renewal | Extension / modification / refinance | Canadians renew with the same lender as routine; U.S. borrowers more often refinance. |
| Compounded semi-annually, not in advance | Simple interest / monthly compounding; APR | Canada’s Interest Act shapes how fixed rates are stated. U.S. consumer loans quote an APR. |
| Lender fee / broker fee | Origination fee / points | U.S. fees are often quoted in points (1 point = 1% of the loan). |
| Open / closed mortgage | No prepayment penalty / prepayment penalty or lockout | “Open” and “closed” are Canadian terms with no direct U.S. label. |
| Three months’ interest / IRD (interest rate differential) | Prepayment penalty / yield maintenance / step-down (e.g., 3-2-1) | Interest Act s. 10: on a mortgage with a term over 5 years not given by a corporation, the borrower can prepay after 5 years with 3 months’ interest. |
| Commitment letter | Term sheet / loan commitment | Same function. A Canadian commitment letter is usually binding once accepted; a U.S. term sheet is often non-binding until the loan commitment issues. |
| Equity takeout | Cash-out refinance | Borrowing against existing equity. |
| Bridge loan / bridge financing | Bridge loan | Same. |
| Insured mortgage (CMHC, Sagen, Canada Guaranty) | FHA / VA loans; private mortgage insurance (PMI) | Canada: default insurance is mandatory above 80% loan-to-value at federally regulated lenders. |
| High-ratio / conventional mortgage | High-LTV / conforming loan (Fannie Mae, Freddie Mac) | U.S. “conforming” means it meets agency purchase rules; Canada has no agency equivalent. |
| Prime rate (set by banks, tracks the Bank of Canada overnight rate) | Prime rate (WSJ Prime, tracks the federal funds rate) | Same name, different benchmark and level. |
| CORRA | SOFR | Overnight benchmark rates. CORRA replaced CDOR after June 28, 2024; SOFR replaced U.S. dollar LIBOR after June 30, 2023. |
| Equifax / TransUnion Canada score (300–900) | FICO score (300–850) | Canadian and U.S. credit files do not cross the border. |
| Notice of Assessment (CRA) / T4 | IRS tax transcript / W-2 / 1099 | Standard income verification documents. |
| Rental income add-back / offset | DSCR (debt service coverage ratio) loan | DSCR loans that qualify on property cash flow alone are a mainstream U.S. investor product; less common in Canada. |
| AACI appraiser | MAI appraiser / licensed or certified appraiser | Different designations; U.S. appraisers are state-licensed. |
4. Default, enforcement and insolvency
Enforcement is where the two systems diverge most. Ontario lenders mostly use power of sale; B.C. lenders go through the courts. U.S. lenders use judicial or non-judicial foreclosure depending on the state and the security document.
| Canada | U.S. equivalent | What differs |
|---|---|---|
| Power of sale (Ontario) | Non-judicial foreclosure / trustee’s sale | Both sell without a court action. Under Ontario’s Mortgages Act, the Notice of Sale cannot go out until default has lasted 15 days, and the sale cannot close until 35 clear days after notice. U.S. timelines are set by each state. |
| Notice of Sale under Mortgage | Notice of Default / Notice of Trustee’s Sale | The formal start of the enforcement clock. |
| Notice of intention to enforce security (Bankruptcy and Insolvency Act s. 244) | No direct equivalent | Required before enforcing against a business debtor’s property; it gives 10 days’ notice. |
| Statutory power of sale (Ontario Mortgages Act Part II) | Statutory foreclosure procedure | Used only if the charge has no power of sale clause: 3 months’ default and 45 days’ notice. |
| Judicial sale / order for sale (B.C. foreclosure process) | Judicial foreclosure | B.C. lenders petition the Supreme Court for an order nisi. The default redemption period is six months under the Law and Equity Act, which a judge can shorten or extend. The court approves any sale. |
| Foreclosure / order absolute (lender takes title, borrower’s equity is extinguished) | Strict foreclosure (rare in most states) | In Canada “foreclosure” in its strict sense means the lender keeps the property. In the U.S. it usually means a sale. See False friends. |
| Redemption period | Right of redemption / reinstatement period | Some U.S. states allow redemption even after the sale. |
| Action on the covenant | Deficiency judgment | Canadian lenders can generally sue for any shortfall; Alberta and Saskatchewan restrict this for many residential loans to individuals. Some U.S. states, such as California, bar deficiencies after certain foreclosures. |
| Forbearance / standstill agreement | Forbearance agreement | Same tool for a negotiated pause. |
| Receiver / receivership (BIA s. 243 or provincial courts) | Receiver / receivership | Similar; U.S. receivers are appointed under state law or federal court. |
| Bankruptcy and Insolvency Act (BIA); Companies’ Creditors Arrangement Act (CCAA) | U.S. Bankruptcy Code (Chapters 7, 11, 13) | Canadian restructuring runs under the BIA or CCAA; U.S. under Chapter 11 or Chapter 13. |
| Stay of proceedings | Automatic stay | Both freeze enforcement once insolvency starts. |
| Writ of possession | Writ of possession / unlawful detainer | Removing occupants after the lender takes control. Ontario residential tenants are not removed by a power of sale; buyers can inherit them. |
5. Tax, entities and capital raising
The most expensive cross-border mistakes happen here. A structure that is tax-efficient on one side can be penalized on the other, so cross-border tax advice should come before any entity is formed.
| Canada | U.S. equivalent | What differs |
|---|---|---|
| CRA (Canada Revenue Agency) | IRS (Internal Revenue Service) | National tax authorities. |
| SIN (Social Insurance Number) | SSN (Social Security Number) / ITIN for non-residents | Needed for credit checks and tax reporting. |
| Business Number (BN) | EIN (Employer Identification Number) | Business tax ID. |
| Corporation (Inc., Ltd., Corp.) | Corporation or LLC | Canada has no LLC. The CRA treats a U.S. LLC as a corporation, which can cause double taxation for Canadian owners. |
| Limited partnership (LP) | Limited partnership (LP) | Common for funds on both sides; flow-through in both. |
| MIC (Mortgage Investment Corporation, Income Tax Act s. 130.1) | Mortgage fund / mortgage REIT | A MIC passes income to investors without corporate tax if it meets the rules; U.S. funds typically use an LLC, LP or REIT. |
| Part XIII withholding tax | FDAP withholding (30%) / portfolio interest exemption | Canada generally exempts arm’s-length interest paid to non-residents from its 25% withholding, except participating debt interest. The U.S. portfolio interest exemption covers many loans but not all; treaty rates may apply. |
| Section 116 clearance certificate | FIRPTA withholding (15%) | Tax withholding when a non-resident sells real property. |
| NR4 / T5 slips | Form 1042-S / 1099-INT | Interest reporting slips. |
| GST/HST | Sales tax (state and local only) | The U.S. has no federal sales tax. |
| Self-directed RRSP / TFSA holding a mortgage | Self-directed IRA / Solo 401(k) | Both countries let retirement accounts fund qualifying private loans, with strict non-arm’s-length rules. |
| Provincial securities commissions (OSC, BCSC) | SEC plus state “blue sky” regulators | Canada has no single national securities regulator. |
| Accredited investor (NI 45-106) | Accredited investor (Regulation D, Rule 501) | Canada (individual): net income over $200,000 ($300,000 with a spouse) in each of the last two years, financial assets over $1,000,000, or net assets of at least $5,000,000. U.S.: income over $200,000 ($300,000 joint), net worth over $1,000,000 excluding the primary residence, or holding a Series 7, 65 or 82 license. |
| Prospectus exemptions (accredited investor, offering memorandum) | Regulation D Rule 506(b) / 506(c) | Private placements; U.S. 506(b) bars general solicitation and 506(c) allows it with verification. |
| Syndicated mortgage | Fractional / participation interest; mortgage note offering | Pooling investors in one loan is regulated as a securities or mortgage activity in both countries. |
| Prohibition on the Purchase of Residential Property by Non-Canadians Act (expires January 1, 2027 unless renewed); provincial foreign buyer taxes | No federal ban; some state-level restrictions on certain foreign buyers | The ban covers residential buildings of up to 3 units in urban areas, with exceptions. Ottawa is reviewing a replacement and had announced no decision as of October 22, 2026. Separately, Ontario’s 25% Non-Resident Speculation Tax and B.C.’s 20% additional property transfer tax continue regardless. |
6. Property and everyday real estate vocabulary
These terms come up on deal calls and in appraisals, and they trip up newcomers on both sides.
| Canada | U.S. equivalent | What differs |
|---|---|---|
| Agreement of Purchase and Sale (APS) / Contract of Purchase and Sale (B.C.) | Purchase agreement / PSA | Same document. |
| Conditions (financing, inspection) | Contingencies | Same concept. |
| Deposit | Earnest money deposit | Same concept; U.S. deposits usually sit with escrow. |
| Closing date | Closing / settlement date | Same. |
| Freehold | Fee simple | Full ownership of land and building. |
| Condominium corporation / strata corporation (B.C.) | Condo association / HOA (homeowners association) | Body that runs the shared property. |
| Condo fees / strata fees | HOA dues | Monthly common expense payments. |
| Status certificate (Ontario) / Form B (B.C.) | HOA resale certificate / estoppel letter | Confirms fees, arrears and the reserve fund before purchase. |
| Semi-detached | Duplex / twin home | Two homes sharing one wall. |
| Bachelor apartment | Studio apartment | Same layout. |
| Secondary suite / basement apartment / laneway or garden suite | ADU (accessory dwelling unit) | Extra unit on one lot; both countries are loosening the rules. |
| Cottage | Vacation home / cabin / lake house | Recreational property; lenders often price it differently. |
| Realty taxes / property taxes | Property taxes | Same; U.S. tax liens can rank ahead of the mortgage. |
| Purpose-built rental | Multifamily | U.S. “multifamily” usually means 5+ units for financing. |
| Realtor / real estate salesperson | Realtor / real estate agent | “Realtor” is a trademark in both countries. |
| Lawyer / solicitor | Attorney | Different titles; same profession. |
| Check (cheque in Canada) | Check | Spelling only. |
| Province / territory | State | Both control real property law locally. |
7. False friends: same word, different meaning
These words exist in both countries but mean different things. They cause the most misunderstandings on cross-border deals.
| Term | In Canada | In the U.S. |
|---|---|---|
| Foreclosure | Usually the lender takes title and the borrower’s equity is wiped out; rare in Ontario. | Usually a forced sale, judicial or non-judicial. |
| Mortgage | Both the loan and the security (in Ontario, often called a “charge”). | The security instrument; the loan itself is the promissory note. |
| Term | How long the rate and conditions are locked, often 1–5 years. | Usually the full life of the loan. |
| Mortgage broker | Licensed intermediary who arranges loans. In Ontario the brokerage license also covers lenders in the business, so “broker” and “lender” can share one license. | May arrange loans or close in its own name (table funding), depending on the state license. |
| Prime | Bank prime rate tracking the Bank of Canada. | WSJ Prime tracking the Federal Reserve; a different number. |
| Conventional mortgage | Loan at or below 80% loan-to-value, not requiring default insurance. | Any loan not backed by FHA, VA or USDA. |
| Notary | In Quebec and B.C., a lawyer-like professional who can close real estate deals. | Usually only witnesses signatures. |
| Licensed lender | Ontario has no separate lender license: a lender in the business of lending on real estate needs a brokerage license unless an exemption applies, such as lending only through a licensed brokerage. B.C. added a distinct mortgage lending license category on October 13, 2026. | A stand-alone lender license is common. Some states require it even for private, business-purpose lenders; others exempt business-purpose lending entirely. |
| Accredited investor | Defined under National Instrument 45-106. | Defined under SEC Regulation D; the tests and thresholds differ. |
| Closing costs | Largely legal fees, land transfer tax and adjustments. | Escrow, title insurance, recording fees, points and transfer taxes. |
Sources
Dated and jurisdiction-specific entries were checked against these pages on October 22, 2026.
- Criminal interest rate and commercial exemptions: Cassels, Watson Goepel
- B.C. Mortgage Services Act: BCFSA, MLT Aikins
- Ontario lender licensing: CMBA Ontario (FSRA FAQ)
- FINTRAC mortgage sector: FINTRAC, Who must report
- FinCEN Residential Real Estate Rule: Davis Wright Tremaine, Burr & Forman
- Non-Canadian purchase ban: Aird & Berlis, Canadian Mortgage Trends, October 7, 2026
- Ontario power of sale: Government of Ontario, Goldman Sloan Nash & Haber
- B.C. foreclosure redemption period: Instafund Mortgage Management Corp. v. 1365651 BC Ltd., 2025 BCSC 1680
- Canadian accredited investor tests: Nova Scotia Securities Commission
Go deeper
The CBPLA in-depth articles explain the rules behind these terms, from Canada's criminal interest rate to power of sale, foreclosure and withholding tax. Plain-language definitions of general private lending terms are in the Private Lending Glossary.
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