It might be different in Canadia. In the US, one either enrolls in a terminal master's program or a PhD program. Those who get through the terminal master's can jump into a PhD, and those who don't make it in a PhD program are usually given a master's as a consolation prize. Some places like Stanford or Cal-Tech purposely enroll 3-4 time the number of PhD students that will actually finish with the degree... many places are much lower, of course, but the difference is what program one is technically enrolled in.
I love how we're talking about Nathan in his absense, lol. That'll teach him to not post around here.