About This Book

Principles of Credit: Consumer, Mortgage, and Commercial Lending in Canada was developed to provide students with a practical introduction to modern lending principles within the Canadian financial services industry.

This textbook explores foundational concepts related to:

• consumer lending;
• mortgage financing;
• commercial credit;
• trade credit;
• financial analysis;
• fraud prevention;
• risk management; and
• responsible lending practices.

The text is designed for students studying:

• finance;
• business;
• banking;
• credit management; or
• financial services.

Throughout the textbook, emphasis is placed on applying lending concepts to realistic business and consumer lending situations commonly encountered within Canadian financial institutions.

In addition to traditional lending concepts, this edition also explores the growing role of:

• technology;
• digital banking;
• AI-assisted underwriting;
• fraud prevention systems; and
• relationship management
  within modern lending environments.

The textbook combines:

• foundational theory;
• practical examples;
• applied lending scenarios;
• financial analysis;
• reflection questions; and
• risk management concepts
  to support both academic learning and workplace preparation.

Because lending practices may vary between financial institutions, students should understand that organizations may use different:

• underwriting standards;
• lending policies;
• documentation requirements;
• technologies; and
• operational procedures.

As a result, this textbook focuses on helping students build a strong foundation in lending principles while recognizing that workplace practices may differ across the financial services industry.

Special attention is also given to:

• ethical decision-making;
• responsible lending;
• communication skills;
• professional judgment; and
• long-term client relationships,

which remain essential components of successful lending and financial services careers.

This textbook was developed with an applied, student-focused approach to support learning that is:

• practical;
• industry-relevant;
• Canadian-focused; and
• connected to real-world lending environments.

Authors

Carla Van Horne
JR Shaw School of Business
Northern Alberta Institute of Technology (NAIT)

Rosanna Anderson
JR Shaw School of Business
Northern Alberta Institute of Technology (NAIT)