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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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encumbranceDefinition (Mortgages, Real-estate, Financial-banking, Legal-contracts)
Anything that affects or limits the clear and free title to a property, such as mortgages, leases, easements, or restrictions.
endorseDefinition (Financial-banking)
To sign the back of a cheque in order to cash it.
entity-purchase agreementDefinition (Investments, Insurance, Financial-banking)
A plan used for businesses with multiple owners where insurance policies are taken out for each owner in the amount of their ownership stake.
entrepreneurDefinition (Investments, Financial-banking)
A person who starts and manages a business.
environmental impact statement (EIS)Definition (Real-estate, Financial-banking, Legal-contracts)
A government-required evaluation of how construction will affect the environment surrounding a site.
Equifax (EF)Company Est.1899, Canada
A major credit bureau company in Canada along with Trans Union.
equityDefinition (Investments, Mortgages, Insurance, Financial-banking, Legal-contracts)
The value of a property minus outstanding mortgage debt and other liens.
errors and omissions insuranceDefinition (Insurance, Financial-banking)
Insurance that protects architects, home inspectors and contractors from claims by clients for professional mistakes.
escrowDefinition (Mortgages, Real-estate, Taxation, Financial-banking)
An account in which money for property taxes and insurance is held until paid. Money is added to the account every time a mortgage payment is made.
escrow account (EA)Definition (Mortgages, Taxation, Financial-banking)
An account in which money for property taxes and insurance is held until paid; money is added to the account every time a mortgage payment is made.
escrow agentDefinition (Mortgages, Real-estate, Financial-banking, Legal-contracts)
A neutral third party who holds the documents and money in a real-estate transfer until all conditions are met.
estateDefinition (Investments, Estate-management, Real-estate, Financial-banking, Legal-contracts)
The ownership interest of an individual in real property.
estate planningDefinition (Investments, Estate-management, Annuities, Taxation, Insurance, Financial-banking)
The process of determining how assets will be dispersed after an individual's death, ideally in the most tax-efficient way possible.
exchangeDefinition (Mortgages, Real-estate, Taxation, Financial-banking)
A trade of property for other property or services. Like-kind property exchanges are a popular tax-deferral strategy.
executorDefinition (Investments, Insurance, Financial-banking)
The person who manages the estate of a deceased individual.
expenseDefinition (Investments, Taxation, Financial-banking)
Costs incurred through a business's operations.
expensingDefinition (Taxation, Financial-banking)
Government tax law allows individuals to expense certain business activities.
Experian (XP)Company, Canada
One of the Big Three credit bureaus, along with Equifax and Trans Union, Experian not normally used in Canada.
exportsDefinition (Investments, Financial-banking)
Products and services produced in Canada and sold in other countries.
express accountDefinition (Financial-banking)
A low-fee or no-free chequing account, limited to ATM, telephone, and online transactions. Express account customers are charged fees when using bank teller services.
extended warrantyDefinition (Automotive, Financial-banking, Legal-contracts)
A service contract that covers certain vehicle repairs or problems after the manufacturer's or dealer's warranty expires. Extended warranties are sold by vehicle manufacturers, dealers, and independent companies. With a new vehicle, the extended warranty must be purchased by the end of the first year of ownership.
face valueDefinition (Insurance, Financial-banking)
The value of an asset, or the size of an insurance benefit.
fidelity bondDefinition (Insurance, Financial-banking)
Insurance that protects a business from losses due to employee fraud, such as theft, forgery or fraudulent trading.
fiduciaryDefinition (Estate-management, Financial-banking, Legal-contracts)
An individual, company, or association that manages assets for another party. Fiduciaries include executors of wills and estates, trustees, receivers in bankruptcy, and those responsible for managing the finances of a minor.
fiduciary dutyDefinition (Estate-management, Financial-banking, Legal-contracts)
A requirement that someone in a position of trust, such as a banker, real-estate agent, or title agent, must act in good faith and trust on behalf of a client.
filing extensionDefinition (Taxation, Financial-banking, Legal-contracts)
An additional amount of time to file your return. A filing extension, however, does not give you more time to pay your taxes.
Finance CanadaCompany, Canada-wide
Federal department responsible for Canada's economic performance and regulation of financial institutions.
finance chargeDefinition (Mortgages, Financial-banking)
Charges that include all of the interest expected to be earned over the life of a loan, in addition to the service charges, mortgage insurance premiums, and other loan-related charges.
financing entityDefinition (Insurance, Financial-banking)
An entity that purchases an insurance policy or settlement contract.
financing expensesDefinition (Investments, Financial-banking)
Expenses sustained from interest payments, financing, and dividends to shareholders.
finder feeDefinition (Investments, Mortgages, Real-estate, Insurance, Financial-banking)
A fee paid by a party to another for services rendered.
firm commitmentDefinition (Mortgages, Financial-banking)
A lender's promise to lend money to a specific borrower on specified terms at a certain time.
fiscal deficitDefinition (Investments, Financial-banking)
When the government spends more money than it receives in revenue over the course of one year.
fiscal policyDefinition (Taxation, Financial-banking)
The use of government spending and taxation policies to influence the economy.
fiscal surplusDefinition (Taxation, Financial-banking)
When the government receives more in revenue than it spends over the course of the year.
fixed assets (FA)Definition (Taxation, Financial-banking)
Assets like machinery, land, buildings, or property used in operating a business that will not be consumed or converted into cash during the current accounting period.
fixed expenses (FE)Definition (Taxation, Financial-banking)
Fixed business costs that do not change regardless of business volume, such as property rental, insurance payments, utilities, etc.
fixed instalmentDefinition (Mortgages, Financial-banking)
Periodic (usually monthly) payment on a loan whose sum does not vary.
flat feeDefinition (Investments, Mortgages, Real-estate, Insurance, Financial-banking)
A fixed charge that a broker requests instead of a commission.
floatDefinition (Financial-banking)
The amount of time the bank takes to clear or reject a cheque for payment
forbearanceDefinition (Mortgages, Financial-banking, Legal-contracts)
Delaying foreclosure, usually because the borrower has arranged to pay the amount in arrears.
foreclosureDefinition (Mortgages, Financial-banking, Legal-contracts)
The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
foreign currency (FCY)Definition (Financial-banking)
Paper money and coins from other countries.
foreign currency surchargeDefinition (Financial-banking)
A fee charged by a credit card company for purchases made in a foreign currency.
foreign exchange (F/X, FE, FOREX, FX)Definition (Investments, Financial-banking, Bank Statements)
Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).
  ➥  Bank account transaction code.
foreign exchange rate (FXRate)Definition (Investments, Financial-banking)
The value of a nation's currency in terms of another nation's currency
foreign investmentDefinition (Investments, Financial-banking)
Investing money into a business in another country.
forfeitureDefinition (Financial-banking, Legal-contracts)
Loss of property because of violation of law or contract.
four pillarsDefinition (Insurance, Financial-banking)
Refers to the main types of financial institutions: banking, trust, insurance, and securities.
franchiseDefinition (Investments, Financial-banking, Legal-contracts)
The right to sell products or services under a corporate name or trade mark (established by someone else). This right is usually purchased for cash in addition to a royalty fee on, or a percentage of, all sales.
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Encumbrance — Franchise
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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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