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Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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fresh startDefinition (Financial-banking)
The characterization of a debtor's status after bankruptcy. i.e., free of most debts.
friendly takeoverDefinition (Investments, Financial-banking, Legal-contracts)
When a company purchases another and both parties' management approve.
fringe benefitDefinition (Investments, Insurance, Financial-banking)
Employee compensation other than your wages, tips and salaries, such as health insurance, life insurance and pension plans. Usually referred to as a Bonus.
full income verificationDefinition (Mortgages, Financial-banking)
A requirement for fully documented proof of income; loans of this type usually offer lower interest rates than no-income or "no-doc" verification loans.
future value of an annuity (FVA)Definition (Investments, Estate-management, Annuities, Financial-banking)
The value of an annuity at some future date.
futuresDefinition (Investments, Financial-banking)
Contracts to buy something in the future at a price agreed upon in advance. They first developed in the agriculture commodity markets but often involve foreign exchange, Eurodollar deposits and government bonds.
garnishmentDefinition (Taxation, Financial-banking)
An amount withheld from your pay and remitted to another party, such as a creditor. You must include in your taxable income any amount that was garnished from your pay, because the full amount of your pay is considered to have been received by you even though some was withheld to pay your debts.
good creditDefinition (Mortgages, Financial-banking)
Someone who carries little credit risk.
goods and services tax (GS, GST)Canada
A sales tax that applies in all Canadian provinces charged at 5% (as of 2012).
  ➥  Bank account transaction code.
grace periodDefinition (Insurance, Financial-banking)
If the credit card user does not carry a balance, the grace period is the interest-free time a lender allows between the transaction date and the billing date. The standard grace period is usually between 20 and 30 days. If there is no grace period, finance charges will accrue the moment a purchase is made with the credit card. People who carry a balance on their credit cards have no grace period.
gross domestic product (GDP)Definition (Investments, Financial-banking)
The total value of all the goods and services produced by the Canadian economy in a single year.
gross incomeDefinition (Taxation, Financial-banking)
Normal annual income including overtime that is regular or guaranteed. The income may be from more than one source. Salary is generally the principal source, but other income may qualify if it is significant and stable.
gross national product (GNP)Definition (Investments, Taxation, Financial-banking)
The value of all goods and services accruing to Canadians in a given year. It equals Gross Domestic Product, plus income of Canadians from foreign production, less income from Canadian production earned by non-residents (such as interest and dividends paid to foreign lenders).
gross overtimeDefinition (Taxation, Financial-banking)
Overtime pay before taxes that is averaged over two years can be considered monthly income, but it must be over the two years or it does not count.
gross profit marginDefinition (Investments, Financial-banking)
The difference between the sales your business generates and the costs you pay out for goods.
guaranteeDefinition (Financial-banking, Legal-contracts)
An enforceable warranty on the promise of quality of a product or formal promise by one person to take responsibility for the debts or obligations of another person if that person fails to meet them.
guaranteed investment certificate (GIC)Definition (Investments, Financial-banking)
An investment that pays a set rate of interest over a fixed period of time.
guarantyDefinition (Mortgages, Financial-banking)
A promise to assume responsibility for a debt if the borrower defaults.
harmonized sales tax (HST)Canada
A sales tax used in some provinces to merge the GST and PST.
  ➥  Canadian consumption tax.
Health and Welfare Trust (HWT)Definition (Taxation, Insurance, Financial-banking)
A method for employers to offer their employees tax-free health benefits.
holding periodDefinition (Financial-banking)
The length of time a capital asset is owned. Assets held 12 months or less are short-term; those owned more than 12 months are long-term properties.
home bankingDefinition (Financial-banking)
A way to access bank accounts by phone. Typically customers can transfer funds, pay bills and make account inquiries.
Home Buyers' Plan (HBP)Canada
A way for a homebuyer to use part of his or her RRSP as a down payment on a mortgage.
  ➥  Government assistance for first-time homebuyers.
home equity (HE)Definition (Mortgages, Financial-banking)
The part of a home's value that the mortgage borrower owns outright; the difference between the fair market value of the home and the principal balances of all mortgage loans.
home equity debtDefinition (Mortgages, Financial-banking)
Debt secured by your home.
home equity line of credit (HELOC)Definition (Mortgages, Financial-banking)
An open-ended loan, paid as revolving debt, that is backed by the equity in the property.
  ➥  Also known as a Home Line of Credit.
home equity loan (HEL)Definition (Mortgages, Financial-banking)
A loan that can replace or be an addition to the first mortgage. Typically used as a home improvement loan.
  ➥  Also known as an Equity Take Out (ETO).
home loanDefinition (Mortgages, Financial-banking)
A loan used to buy a home is referred to as a "mortgage."
hostile takeoverDefinition (Investments, Financial-banking, Legal-contracts)
When a company purchases another but the target company's management does not approve.
household income (HHI)Definition (Taxation, Financial-banking)
The total income of all members of a household.
housing-equity partnershipDefinition (Investments, Mortgages, Financial-banking)
An arrangement in which one buyer lives in a home and the other has an ownership stake as an investment. The partners split the capital gain after the property is sold.
hybrid annuityDefinition (Investments, Estate-management, Annuities, Financial-banking)
An annuity with both fixed and variable annuity elements.
illiquid assetDefinition (Automotive, Investments, Financial-banking, Legal-contracts)
An asset that cannot be sold easily or in a timely manner for its full value.
immediate payment annuityDefinition (Investments, Annuities, Financial-banking)
An annuity where payments to the annuitant start immediately after the annuity has been set up.
importsDefinition (Taxation, Financial-banking)
Goods and services produced in other countries and sold in Canada.
incomeDefinition (Investments, Taxation, Financial-banking)
The money earned in a specific time period.
income approachDefinition (Investments, Mortgages, Real-estate, Taxation, Financial-banking)
A step in the valuation process of an income property. The value is reached by estimating the annual income minus an allowance for vacancies and bad debts and then subtracting annual operating expenses, real estate taxes, and insurance premiums to obtain the net operating income. This is then converted by capitalization into a capital value.
income propertyDefinition (Investments, Real-estate, Financial-banking)
Real estate developed or improved to produce income. Also referred to as "non-owner occupied property" or "rental property."
income statementDefinition (Investments, Taxation, Financial-banking)
Also known as the profit and loss statement or P&L, enables you to calculate your company's pre-tax profits by subtracting total expenses from total revenues.
income taxDefinition (Taxation, Financial-banking)
The main source of revenue for the federal government and many Provinces. The tax is based on your earned and unearned income. The amount or percentage taxed is based on the amount of income, using the governments graduated tax scale.
income-splittingDefinition (Taxation, Financial-banking)
A financial strategy used for tax purposes to reduce the overall tax burden on a family. Income is shifted from one family member to another who is in a lower tax bracket, so the income is taxed at the lower rate to save the family money.
incorporated businessDefinition (Investments, Financial-banking, Legal-contracts)
A company that exists as a corporation.
independent bankDefinition (Financial-banking)
A locally owned bank that is operated without being affiliated with a bank holding company. Also known as a community bank.
indexDefinition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)
A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes.
indirect taxDefinition (Taxation, Financial-banking)
A tax that is collected by a third party before being transferred to the government.
inflationDefinition (Investments, Financial-banking)
A rise in the average level of prices in the economy.
informal trustDefinition (Investments, Financial-banking)
Also known as in-trust account or "bare" trust, this is an investment account registered in an adult's name in trust for a child. The account is used to save/invest funds for a child, and the funds must be reserved for and used by the beneficiary child.
initial public offering (IPO)Definition (Investments, Financial-banking, Legal-contracts)
When shares of a corporation become available to the public for the first time.
instalmentDefinition (Mortgages, Financial-banking)
The regular periodic payment that a borrower agrees to make the lender.
Institute of Canadian BankersCompany
An institute that provides education and training programs specific to professionals in the financial-service industry
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Fresh Start — Institute of Canadian...
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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
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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