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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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annuity ladderDefinition (Investments, Annuities, Financial-banking)
A financial plan to purchase multiple annuities from different companies over a number of years in order to minimize interest rate risk and the risk of a total loss.
application feeDefinition (Mortgages, Financial-banking)
What the lender charges to process the document in which a prospective borrower details his or her financial situation to qualify for a loan.
appreciationDefinition (Investments, Real-estate, Financial-banking)
An increase in the value of a property or item.
approvalDefinition (Mortgages, Real-estate, Financial-banking)
An assessment made by a lender of a borrower's ability to pay for a home and a confirmation of the amount the borrower may obtain.
arbitrationDefinition (Financial-banking, Legal-contracts)
A dispute-resolution method in which an impartial third party, agreed upon by all sides beforehand, makes a decision.
assetDefinition (Mortgages, Insurance, Financial-banking, Legal-contracts)
Anything of monetary value that is owned by a person. Assets include real property, personal property, and enforceable claims against others including bank accounts, stocks, mutual funds, and so on.
asset caseDefinition (Financial-banking, Legal-contracts)
A bankruptcy proceeding where there are non-exempt assets that might be accessible to pay creditor's claims.
atm access feeDefinition (Financial-banking)
Fee charged in addition to the individual account fees for an account holder to gain access to the ATM system. Can be monthly, weekly, or annual fee. See also "Automated Teller Machine."
atm allianceDefinition (Financial-banking)
An alliance between banks and/or credit unions that is designed to avoid or minimize surcharges for non-bank customers at ATM machines. Customers from one bank that belongs to the alliance can use surcharge-free ATMs at all alliance banks.
atm card feeDefinition (Financial-banking)
This is not a debit card fee. It can be an annual or monthly fee charged on top of individual account fees to obtain an ATM card. The fee may also be charged per card or per account. For example, if an account is held jointly, the bank may charge for the second person to hold a card or it may charge one fee for all the cards on an account.
atm surchargeDefinition (Financial-banking)
A fee charged to someone using a bank-owned ATM because he or she does not hold an account with that bank. It is a good idea to review what your bank charges you to use another bank's ATM system to avoid paying additional surcharges to your bank.
auditDefinition (Taxation, Financial-banking, Legal-contracts)
An examination of a taxpayer's income tax return or other transactions bearing tax consequences. Audits range from a simple letter from the agency to a detailed review of individual or business tax filings and records.
authorized userDefinition (Financial-banking, Legal-contracts)
Any person to whom you give permission to use a credit card account.
automated teller machine (ATM)Canada
A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.
  ➥  See also Automated Banking Machine (ABM).
automatic paymentDefinition (Mortgages, Financial-banking)
An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.
average annual yield (AAY)Definition (Investments, Financial-banking)
The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.
average daily balance (ADB)Definition (Financial-banking)
This is the method by which most credit cards calculate your payment due. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card's monthly periodic rate, which is calculated by dividing the annual percentage rate by 12.
average tax rateDefinition (Taxation, Financial-banking)
The real rate of taxes you pay after taking into account the various federal tax brackets. There are different tax rates for different levels of income; you pay lower rates on the first part of your income, more on the later earnings. As you pass each income level, the money above that level is taxed at the next higher rate. Therefore, your average tax rate is less than the top rate you pay on a portion of income.
backflip takeoverDefinition (Investments, Financial-banking, Legal-contracts)
A form of takeover where the purchasing company becomes a subsidiary of the purchased company.
bad creditDefinition (Mortgages, Financial-banking)
Someone who carries a higher credit risk.
bad credit loanDefinition (Financial-banking)
A loan taken out by someone with bad credit.
bad debtDefinition (Mortgages, Taxation, Financial-banking)
Money that cannot be collected is considered bad debt. Businesses can deduct bad debts under certain circumstances. If a bad debt is personal, it can also be deducted in some instances as a short-term capital loss.
balance (bal.)Definition (Financial-banking, Abbreviation)
The amount of money in your account.
balance sheet (B/S, BS)Definition (Investments, Insurance, Financial-banking)
A listing of a business' assets, liabilities and ownership equity as of a specific date.
balance transfer (BT)Definition (Financial-banking)
The process of moving an unpaid credit card debt from one issuer to another. Card issuers sometimes offer teaser rates to encourage balance transfers coming in and balance transfer fees to discourage them from going out.
balance transfer feeDefinition (Financial-banking)
Fee charged customers for transferring an outstanding balance from one card to another.
balloon loanDefinition (Mortgages, Financial-banking)
A loan in which the payments aren't set up to repay the loan in full by the end of the term. At the end comes the balloon payment -- one that is larger than the other, periodic payments and pays off the remaining principal.
balloon paymentDefinition (Mortgages, Financial-banking)
A loan instalment that is larger than the other, periodic payments and pays off the remaining principal.
bankDefinition (Mortgages, Financial-banking)
An institution that acts as a financial intermediary by receiving money from depositors and lenders and also lending to borrowers.
bank holding company (BHC)Definition (Financial-banking)
A company that owns or controls one or more banks or companies associated with banking such as leasing companies, credit companies, etc. It is usually identified by the word Bancorp or Bancshares in the name. The Federal Reserve Board of Governors regulates all bank holding companies.
Bank of Canada (BC, BOC)Company Est.1935, Ottawa, Ontario, Canada
Canada's central bank.
  ➥  Canada's central bank.
bank rateDefinition (Mortgages, Financial-banking)
Closely related to the overnight rate, the bank rate is the interest rate the Bank of Canada charges to banks and other major financial institutions for one-day loans.
bank reservesDefinition (Financial-banking)
Banks' holdings of deposits.
bank spreadDefinition (Investments, Mortgages, Financial-banking)
The difference between the interest rate a bank charges a borrower and the interest rate a bank pays a depositor.
bank wireDefinition (Financial-banking)
An electronic payment system for the transfer of money between banks.
bankruptcy (BK)Definition (Financial-banking)
A court action under the Federal Bankruptcy Code by which a debtor's debts may be discharged, usually by transferring assets to a trustee, or rescheduled.
bankruptcy trusteeDefinition (Financial-banking)
A private individual or corporation appointed to undertake bankruptcy proceedings for a individual or corporation.
basisDefinition (Investments, Taxation, Insurance, Financial-banking)
That on which a thing rests or is founded.
basis point (BPS)Definition (Mortgages, Financial-banking)
A unit of measure: 1/100th of one percent. For example, the difference between a 9.0% loan and a 9.5% loan is 50 basis points.
  ➥  Used by mortgage brokers and lenders when discussing mortgage rates and determining commissions.
bear marketDefinition (Investments, Financial-banking)
When stock prices are decreasing, it's a bear market.
before-tax incomeDefinition (Taxation, Financial-banking)
Earnings before income taxes are paid.
best's capital adequacy relativityDefinition (Insurance, Financial-banking)
A percentage used to measure a company's relative capital strength as compared to an industry peer composite.
bilateral contractDefinition (Real-estate, Financial-banking, Legal-contracts)
A legal agreement in which both parties promise to give each other something. A purchase agreement in which the buyer promises to give money and the seller promises to transfer property is a bilateral contract.
bill presentmentDefinition (Financial-banking)
An online system that allows customers to receive and view the bill on a computer, and then pay the bill electronically. Users can pay their bills immediately and the money is transferred from the account.
billing cycleDefinition (Financial-banking)
The number of days between the last statement date and the current statement date.
billing statementDefinition (Financial-banking)
A monthly bill that is sent by a creditor to the customer that provides a summary of the activity on an account. This can include balances, purchases, payments, credits, and finance charges.
blank chequeDefinition (Financial-banking)
A cheque that does not have a dollar amount written on it.
bondDefinition (Investments, Financial-banking)
A certificate of debt issued by a government or corporation guaranteeing payment of the original investment plus interest by a specified future date.
bond ladderDefinition (Investments, Financial-banking)
A series of bonds with different maturity dates, often times evenly spaced over a set period of time.
book valueDefinition (Real-estate, Insurance, Financial-banking, Legal-contracts)
The value of a property, item or company as a capital asset based on its cost plus any additions, subtracting depreciation.
Previous Page
Acceleration ClauseAnnuity in Arrears
 
Currently Displayed — Page 2
Annuity Ladder — Book Value
  Next Page
BootCentral Bank

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
Commutation
Page 5: Compound Interest
Debit Bureau
Page 6: Debit Card
Employment Insurance
Page 7: Encumbrance
Franchise
Page 8: Fresh Start
Institute of Canadian...
Page 9: Insufficient Funds
Lender
Page 10: Letter of Credit
Minimum Payment
Page 11: Mint Condition
Operating Cash Flow
Page 12: Operating Loan
Possession
Page 13: Posted Rate
Rate
Page 14: Rate Cap
Royalty Income
Page 15: Sale Price
Sub-prime Borrower
Page 16: Subordinate Loan
Underwriter
Page 17: Underwriters Association
Zero Balance

Notable Terms

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