Canadian Financial, Real Estate and Mortgage Glossary

gap insurance — Definition

A type of insurance offered to auto lease customers. This type of insurance covers the difference in value between a vehicle's book value and the amount remaining on a vehicles financing or lease, if such a difference exists.

garnishment — Definition

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.

gatekeeper — Definition

In relation to health maintenance organizations, a gatekeeper is a primary care physician that arranges medical care for policyholders.

GE Capital — Company

GE Capital is the new CMHC alternative in the Canadian Mortgage Market place. GE Capital like CMHC provides banks/lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure GE Capital assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "CMHC."

  ➥  Also offers commercial financing.

general account (GA) — Definition, Very Important

Investments and assets that an insurer uses for paying benefits and claims.

general contractor — Definition

The person or company that performs work on a construction project, hires subcontractors and suppliers, or both.

general educational development (GED) — Acronym

General Electric Capital (GEC) — Company

General Index of Financial Information (GIFI) — Canada

  ➥  A standard list of codes used in preparing financial statements.

General Insurance Statistical Agency (GISA) — Company Est.2005, Toronto, Ontario, Canada

  ➥  A federally incorporated, non-profit corporation.

general ledger (G/L, GL) — Acronym

A ledger style view of income, expenses, and balances used to keep accounting records of a business.

general ledger account (GLA) — Acronym

general ledger account code (GLAC) — Acronym

general ledger accounting system (GLAS) — Acronym

general liability insurance — Definition

Insurance that protects individuals and businesses from a number of potential liabilities.

General Motors Acceptance Corporation Commercial Mortgage (GMACCM) — Company

general purpose reloadable (GPR) — Acronym

  ➥  Prepaid debit card.

general reserve fund (GRF) — Acronym

Create out of normal profit from a business, it is a fund set aside for contingencies and can be utilized for any purpose. It can even be paid out into dividends.

General Revenue Fund (GRF) — Alberta, Canada

The central operating account for the Province of Alberta.

gift from a family member — Definition

A gift of cash, to a mortgage applicant from a relative by blood or marriage, which the applicant is not required to repay. In some instances it is necessary to provide a written statement to that repayment is not required.

glass damage waiver (GDW) — Acronym

glossary — Definition

An alphabetized list of terms and definitions.

good credit — Definition

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.

Government of Canada (GOC) — Company, Canada, Important

grace period — Definition

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.

graduated payment adjustable mortgage loan (GPAML) — Acronym

  ➥  (Graduated Payment Mortgage)

graduated payment mortgage (GPM) — Acronym

A fixed rate residential mortgage that begins with low monthly payments (with a potential negative amortization) that increases over a predetermined period (usually annually) with later payments costing up to 10% more.

Grande Prairie (GP) — Grande Prairie, Alberta, Canada

  ➥  Municipality located in the province of Alberta.

Great West Life (GWL) — Company Est.1891, Canada-wide, Important

  ➥  A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages.