Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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posted rateDefinition (Mortgages, Financial-banking)
The mortgage rates initially offered by a bank which a borrower is then expected to negotiate down.
power of attorney (PA, POA)Definition (Financial-banking, Legal-contracts)
A document in which the signer authorizes someone to conduct business in his or her name -- signing title documents and cheques, for example.
power of saleDefinition (Mortgages, Financial-banking, Legal-contracts)
The right of a mortgagee to force the sale of the property without judicial proceedings should default occur.
pre-approvalDefinition (Mortgages, Financial-banking)
A process that mortgage lenders use to determine how much money they would lend you based on a thorough review of your financial situation. Lenders issue a pre-approval letter which strengthens your position when bidding on a home, as it shows sellers that you will be able to raise funds needed to purchase.
pre-approval letterDefinition (Mortgages, Financial-banking, Legal-contracts)
A document from a lender or broker, estimating how much a potential home-buyer could borrow, based on current interest rates and a preliminary look at credit history.
pre-authorized paymentsDefinition (Financial-banking)
A way to set up a monthly payment to be automatically paid from a bank account.
pre-computed loanDefinition (Automotive, Financial-banking)
With a pre-computed loan, the interest owed over the life of the loan is calculated using a standard amortization table. After signing for this type of vehicle loan, the borrower is obligated to pay back principal plus the full amount of interest that will accrue over the entire term of the loan.
pre-paid expensesDefinition (Mortgages, Real-estate, Taxation, Insurance, Financial-banking)
also called prepaid items or prepaids -- Recurring costs such as taxes, insurance and interest that are paid at closing and which cannot be financed.
pre-paid interestDefinition (Mortgages, Taxation, Financial-banking)
Interest that a borrower pays before it is due, usually to save taxes.
pre-paymentDefinition (Mortgages, Financial-banking)
Applying additional payments towards the balance of a mortgage loan.
pre-payment clauseDefinition (Mortgages, Financial-banking, Legal-contracts)
A clause that stipulates the amount of principal a borrower may prepay ahead of schedule without penalty as well as the prepayment penalty for larger prepayments.
pre-payment penaltyDefinition (Mortgages, Financial-banking, Legal-contracts)
A lender's charge to the borrower for paying off the loan before the end of the term.
pre-qualificationDefinition (Mortgages, Financial-banking)
An informal process in which a lender will offer an opinion on how much money you may be able to borrow. This opinion is based entirely on the financial information you provide and is neither binding nor necessarily accurate because lenders have not yet verified your financial information.
pre-tax operating income (PTOI)Definition (Investments, Taxation, Financial-banking)
The operating income generated by a company, less expenses, before taxes have been paid.
predatory lending (PL)Definition (Investments, Mortgages, Financial-banking, Legal-contracts)
Lending practices that are unfair, deceptive or fraudulent.
premiumDefinition (Insurance, Financial-banking)
A payment made to an insurance company for insurance coverage.
present value interest factor of annuity (PVIFA)Definition (Investments, Estate-management, Annuities, Financial-banking)
A method used to find an annuity's present value.
previous balanceDefinition (Financial-banking)
Some credit card issuers base finance charges on the amount owed by the account holder at the end of the previous billing cycle.
prime lending rate (PLR)Definition (Investments, Mortgages, Financial-banking)
The rate of interest charged on loans by chartered banks to their most creditworthy customers.
  ➥  Bank of Canada's prime (best) lending rate.
prime rateDefinition (Mortgages, Financial-banking)
The rate suggested by the Bank of Canada on which most banks base their prime mortgage lending rate.
principalDefinition (Mortgages, Financial-banking)
The original balance of money lent on an outstanding loan and fees, excluding interest. Also the remaining balance of a loan, excluding interest.
principal and interest (P&I, PI)Definition (Mortgages, Financial-banking)
Acronym for the elements of a mortgage payment: principal and interest.
principal, interest and taxes (PIT)Definition (Mortgages, Taxation, Financial-banking)
Principal, interest and taxes. The components of a monthly mortgage payment.
principal, interest, taxes, and insurance (PITI)Definition (Mortgages, Taxation, Insurance, Financial-banking)
Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
private annuityDefinition (Investments, Annuities, Taxation, Financial-banking)
An arrangement where one party agrees to transfer ownership of an asset to another party (usually a beneficiary) in exchange for lifetime payments.
private equityDefinition (Investments, Financial-banking)
Equity not traded on a stock exchange.
private health services plan (PHSP)Canada
A method for businesses to provide health benefits for their employees that is both tax deductible for the business and non taxable for the employee.
  ➥  Provides tax-deductible health and dental benefits in Canada.
private healthcareDefinition (Taxation, Insurance, Financial-banking)
Health services no provided by the government, often paid out of pocket.
private lenderDefinition (Mortgages, Financial-banking)
A lender not associated with a traditional lender.
privately held companyDefinition (Investments, Financial-banking)
A company that is not listed on a stock exchange.
probateDefinition (Financial-banking)
The process of deciding the validity of a deceased person's will and appointing an executor.
probate saleDefinition (Estate-management, Real-estate, Financial-banking, Legal-contracts)
Sale of property after the death of the owner, supervised by a court, with proceeds divided among creditors and heirs.
professional liability insurance (PLI)Definition (Insurance, Financial-banking)
Insurance that covers professionals for liabilities occurring due to negligence or harm in a product or service they provide.
profitDefinition (Investments, Financial-banking)
When revenues exceed expenses.
promissory note (PN)Definition (Financial-banking, Legal-contracts)
A written promise to repay a loan by a specified time.
property valueDefinition (Real-estate, Financial-banking)
The worth of a piece of real estate, based on the price a buyer and seller would negotiate.
proprietorDefinition (Real-estate, Financial-banking, Legal-contracts)
The owner of a business or property.
protected cell company (SPC)Definition (Investments, Financial-banking)
A company that separates its assets and liabilities into a number of 'cells' to shield itself and each 'cell' from losses.
province of domicileDefinition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)
The province where an individual lives or intends to live permanently or for a long term, regardless of the individual's current location.
provincial sales tax (PST)Canada
A sales tax collected by some Canadian provinces.
provision for credit losses (PCL)Canada
The amount deducted from income equal to the amount by which a bank adjusts its loan balances to reflect anticipated losses on them.
publicly traded companyDefinition (Investments, Financial-banking)
A company that is sold on a stock exchange.
purchase agreementDefinition (Real-estate, Financial-banking)
A written promise to pay a specific amount for a property at a specified time. The purchase agreement is a written statement of the offer, which both the borrower and the seller will sign if the offer is accepted.
purchase optionDefinition (Automotive, Real-estate, Financial-banking)
An agreement where a portion of monthly rent can be credited toward the purchase of a property.
qualifying rateDefinition (Mortgages, Financial-banking)
The mortgage rate that one must qualify for when applying for a variable rate or a term less than 5 years, so that if rates increase, the borrower can continue to make payments.
qualifying ratiosDefinition (Mortgages, Financial-banking)
As calculated by lenders, the percentage of income that is spent on housing debt and combined household debt. The first qualifying ratio, called the gross debt service or GDS is up to and including a maximum of 32% of the combined gross family income. The second qualifying ratio is the Total debt service or TDS is up to and including 40% of gross income.
quantum meruitDefinition (Financial-banking, Legal-contracts)
Used in contract law it means "reasonable value of services."
quick assets (QA)Definition (Investments, Financial-banking)
Assets that can be liquefied quickly without a loss.
quick liquidity ratioDefinition (Investments, Financial-banking)
A metric used to find if a company has enough liquidity to make it's short term financial obligations.
rateDefinition (Investments, Mortgages, Financial-banking)
Percentage a borrower pays for the use of money, usually expressed as an annual percentage.
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Operating LoanPossession
Currently Displayed — Page 13
Posted Rate — Rate
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Rate CapRoyalty Income

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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