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Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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letter of credit (L/C)Definition (Financial-banking, Legal-contracts)
A letter authorizing a person or company to draw on a bank or stating that the bank will honour the credit up to the stated amount.
level paymentDefinition (Mortgages, Financial-banking)
A method of repayment where periodical payments of principal and interest are made in a certain way so the payment amount remains constant.
leverageDefinition (Investments, Financial-banking)
The use of a small amount of cash and a large loan to buy something.
leveraged propertyDefinition (Mortgages, Financial-banking)
A property financed with mortgage debt.
levyDefinition (Taxation, Financial-banking, Legal-contracts)
A cost imposed on an individual or entity.
liabilitiesDefinition (Investments, Financial-banking)
A borrower's debts and legal obligations.
liability insuranceDefinition (Insurance, Financial-banking)
Insurance that provides coverage for damages caused by an individual or entity's negligence or legal responsibilities.
line of credit (LOC)Definition (Financial-banking)
A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
liquid assetsDefinition (Investments, Financial-banking)
Cash and other property that can be converted quickly and easily into cash.
liquidationDefinition (Real-estate, Financial-banking)
To convert into cash.
liquidityDefinition (Financial-banking)
The ability to convert assets to cash quickly, without significant losses.
Lloyd's of LondonCompany
A market for insurance and reinsurance based in London, England where Lloyd's members, underwriters and financial backers can spread and share risk.
lloyd's syndicatesDefinition (Investments, Insurance, Financial-banking)
A group of Lloyd's of London underwriters.
loanDefinition (Investments, Mortgages, Financial-banking, Legal-contracts)
Letting another party use something of value temporarily.
loan applicationDefinition (Mortgages, Financial-banking)
A document in which a prospective borrower details his or her financial situation to qualify for a loan.
loan application feeDefinition (Mortgages, Financial-banking)
A cost charged by a lender for processing loan application documents that are submitted by prospective borrowers.
loan commitmentDefinition (Mortgages, Financial-banking)
A lender's promise to advance a specific sum on specific terms.
loan originationDefinition (Mortgages, Financial-banking)
The process of applying for a loan and the handling of that application by a lender.
loan processingDefinition (Mortgages, Financial-banking)
The steps taken by a lender to convert a loan application into an approved loan for the potential borrower. These steps include processing the application, conducting a credit investigation, evaluating the loan, etc.
loan servicingDefinition (Mortgages, Financial-banking)
Supervising a loan after it has been made. This could involve collecting payments, keeping accounting records, computing interest and principal, etc.
loan sharkDefinition (Financial-banking)
A lender that provides loans at usuriously high interest rates, often ensuring repayment with the threat of force.
loan termDefinition (Mortgages, Financial-banking, Legal-contracts)
The period specified in the promissory note for a borrower to pay a loan, such as a mortgage. Most conventional mortgages have a loan term of 5 or 10 years.
loan-to-value (LTV)Definition (Mortgages, Financial-banking)
The ratio of the principal amount of the loan to the lesser of the purchase price of the property or the property's appraised value. This can be expressed as an 80% loan, or 80% LTV.
  ➥  A widely used term in the mortgage brokerage and lending industry, especially by mortgage underwriters.
local taxesDefinition (Mortgages, Real-estate, Taxation, Financial-banking)
Taxes imposed by local governments (municipalities) to pay for its services. These taxes are in addition to Federal and Provincial taxation.
lock-inDefinition (Mortgages, Financial-banking)
A lender's guarantee that the mortgage rate quoted will not change for a specific period. The borrower wants the lock to stay in effect until closing.
long term capital gain (LTCG)Definition (Investments, Financial-banking)
Your loss from the sale of a capital asset that you held for more than 12 months.
long-term capital lossDefinition (Investments, Financial-banking)
Your profit from the sale of a capital asset that you held for more than 12 months.
long-term liabilitiesDefinition (Financial-banking)
Money owed over a period longer than 12 months, such as mortgages, bank loans, and other obligations.
lossDefinition (Investments, Financial-banking)
When expenses are larger than revenues.
low-documentation loanDefinition (Mortgages, Financial-banking, Legal-contracts)
A mortgage that requires less income or asset verification than conventional loans. Low-documentation loans are designed for the entrepreneur or self-employed, for recent immigrants, or for borrowers who cannot or choose not to reveal their financial information. A substantial down payment and excellent credit history are generally required. This type of loan will also yield a higher interest rate.
low-down-payment loanDefinition (Mortgages, Financial-banking)
A mortgage where the borrower puts down a small amount and borrows a high percentage of the purchase price.
lpq amountDefinition (Mortgages, Financial-banking)
A term used by CanEquity which is short for Loan, Purchase or Qualification amount.
lump sum paymentDefinition (Investments, Mortgages, Annuities, Financial-banking)
One-time single-sum payment or payout.
macroeconomicsDefinition (Investments, Financial-banking)
A study of the economy as a whole, particularly the interaction of its various components.
manufacturer's suggested retail price (MSRP)Definition (Automotive, Financial-banking)
Stands for Manufacturer's Suggested Retail Price. It represents the manufacturer's recommended selling price for a vehicle and each of its options.
marginDefinition (Investments, Mortgages, Financial-banking)
The difference between the cost and the selling price.
marital deductionDefinition (Taxation, Financial-banking)
For estate tax and gift tax purposes, a deduction that allows you to transfer assets to your spouse tax-free.
market conditionsDefinition (Investments, Real-estate, Financial-banking)
Factors that affect the sales of homes in an area, such as interest rates, the unemployment rate, home appreciation, weather and time of year.
market value (MV)Definition (Real-estate, Insurance, Financial-banking)
Also known as "Fair Market Value." The estimated value of a property which a seller could expect to receive under normal conditions.
MasterCard (MC)Definition (Financial-banking)
A credit card issued by MasterCard International which is distributed by many financial institutions around the world. Card holders borrow money against a credit line and pay it back with interest if the balance is carried over from month to month.
maturityDefinition (Investments, Mortgages, Financial-banking)
The date when the principal balance of a loan is due and payable to the lender. Also, the date when a bond pays off its principal.
maturity guaranteeDefinition (Investments, Estate-management, Annuities, Insurance, Financial-banking, Legal-contracts)
A guarantee that after a certain date a contract, such as a life insurance policy or annuity, will have a minimum dollar value.
meals and entertainment (M&E)Definition (Investments, Taxation, Financial-banking)
Deductible expenses in your business such as the cost of taking a client to a restaurant (meals) or a sporting event (entertainment). However, these expenses are only partially deductible (50 % in Canada).
median priceDefinition (Real-estate, Financial-banking)
In a given area, the amount paid for a house in which half of the houses in that area sell for less and half sell for more.
merged credit reportDefinition (Mortgages, Financial-banking)
A summary of one's credit history from the big two credit bureaus: Equifax and Trans Union.
microeconomicsDefinition (Investments, Financial-banking)
Looking at the individual parts of the economy, with emphasis given to the market process and how it works.
minimum average balance to avoid feesDefinition (Financial-banking)
The balance in the account from day-to-day must average this amount when calculated. If the account balance falls below this amount you will be subject to the monthly charge and/or per usage transaction charges.
minimum balance to open an accountDefinition (Financial-banking)
The minimum initial deposit required to open a bank account.
minimum monthly balanceDefinition (Financial-banking)
The least amount of money in a bank account during an entire month.
minimum paymentDefinition (Financial-banking)
The minimum amount a cardholder must pay to keep the account from defaulting. Some card issuers set high minimums if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of three to five percent of the outstanding balance.
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Insufficient FundsLender
Currently Displayed — Page 10
Letter of Credit — Minimum Payment
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Mint ConditionOperating Cash Flow

Search the Glossary

Index of Financial-banking Terms

Page 1: Acceleration Clause
Annuity in Arrears
Page 2: Annuity Ladder
Book Value
Page 3: Boot
Central Bank
Page 4: Certified Cheque
Page 5: Compound Interest
Debit Bureau
Page 6: Debit Card
Employment Insurance
Page 7: Encumbrance
Page 8: Fresh Start
Institute of Canadian...
Page 9: Insufficient Funds
Page 10: Letter of Credit
Minimum Payment
Page 11: Mint Condition
Operating Cash Flow
Page 12: Operating Loan
Page 13: Posted Rate
Page 14: Rate Cap
Royalty Income
Page 15: Sale Price
Sub-prime Borrower
Page 16: Subordinate Loan
Page 17: Underwriters Association
Zero Balance

Notable Terms

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