Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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rate capDefinition (Mortgages, Financial-banking)
A limit on how much the interest rate can change, either at each adjustment period or over the life of the loan.
rate holdDefinition (Mortgages, Financial-banking)
The length of time, typically between 60 and 120 days, that a lender will guarantee a loan's interest rate once you are locked in.
rate indexDefinition (Mortgages, Financial-banking)
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 for adjustable-rate mortgages and other variable-rate loans.
rate lock-inDefinition (Mortgages, Financial-banking)
A written agreement in which the lender guarantees the borrower a specified interest rate, provided the loan closes within a set period of time.
rate of return (ROR, RR)Definition (Investments, Financial-banking)
The profit an investment generates, expressed as equity divided by cash flow.
ratioDefinition (Mortgages, Financial-banking)
Comparison of two figures used to evaluate business performance, such as debt/equity ratio and return on investment.
real estate (RE)Definition (Real-estate, Financial-banking)
A section of land including all the natural resources (above and below the surface) and any permanent buildings or structures located on it. Also known as "realty."
rebateDefinition (Automotive, Financial-banking)
A manufacturer's reduction on the price of a car as an incentive to buyers. Rebates appeal to people with no credit or less-than-perfect credit who cannot qualify for the lowest-rate loan. A rebate may also appeal to first-time buyers who don't have a lot of cash for a down payment or another car to trade in.
rebate cardDefinition (Financial-banking)
This is a credit card that allows the customer to accumulate cash, merchandise or services based on card usage.
receivershipDefinition (Investments, Mortgages, Financial-banking, Legal-contracts)
A form of bankruptcy where a person is appointed to take control of a company and is responsible for recouping unpaid debts.
recessionDefinition (Investments, Financial-banking)
A prolonged period (popularly defined as two successive quarters) in which economic activity shrinks.
reciprocal insurance exchangeDefinition (Insurance, Financial-banking)
A group of individuals, firms and corporations that mutually insure each other.
recognized gain or lossDefinition (Investments, Taxation, Financial-banking)
The amount of gain or loss reported for income tax purposes. You may be able to defer recognizing gain or loss on certain property exchanges, such as like-kind exchanges.
reconciliationDefinition (Financial-banking)
Checking all bank account papers to make sure that the bank's records and your records agree.
refinanceDefinition (Mortgages, Financial-banking)
To arrange a new loan for an increased amount or better terms whereby the old loan is paid off from the proceeds of the new loan.
refundDefinition (Taxation, Financial-banking)
To give back, return, or repay.
regional bankDefinition (Financial-banking)
A bank with a primary market in a regional or metropolitan area but takes deposits from throughout the province in which it is located. Usually called a Credit Union in Canada.
Registered Education Savings Plan (RESP)Canada
An investment vehicle used for a child's post-secondary education.
  ➥  RESPs are offered by most financial institutions in Canada.
Registered Retirement Savings Plan (RRSP)Canada
A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
  ➥  Tax deferred investment contribution used to reduce income tax.
relocation benefitsDefinition (Financial-banking)
Money and other consideration that an employer gives to employees who move or are transferred at the company's behest. Can include reimbursement for packing and moving, house-hunting trips, and temporary housing and storage.
relocation companyDefinition (Financial-banking)
A business that specializes in providing help to employees who move for their employer.
remaining balanceDefinition (Mortgages, Financial-banking)
Unpaid principal on a loan.
remaining termDefinition (Mortgages, Financial-banking)
The time it will take to pay off the rest of an instalment loan as scheduled.
renewalDefinition (Mortgages, Financial-banking)
Signing on again with the same lender once a term is up.
rentDefinition (Mortgages, Real-estate, Financial-banking)
When one party pays another for the use of an asset, service or property.
rent-to-own (RTO)Definition (Mortgages, Real-estate, Financial-banking, Legal-contracts)
An agreement to purchase an asset after a series of rental payments.
rental agreement (RA)Definition (Real-estate, Financial-banking, Legal-contracts)
A document that states the terms and conditions for tenancy of a dwelling.
rental property (RP)Definition (Investments, Mortgages, Real-estate, Financial-banking)
Property that is occupied by rent-paying tenants and not the owner.
repayment periodDefinition (Mortgages, Financial-banking)
In a home equity line of credit, that portion of the life of the loan that follows the draw period. During the repayment period, the borrower cannot take out any more money, but must pay down the loan.
repayment planDefinition (Mortgages, Financial-banking)
Modification of an existing loan after the borrower has been delinquent. Often used when the borrower misses payments but the lender does not foreclose.
repossessionDefinition (Mortgages, Financial-banking, Legal-contracts)
The taking back of property after a borrower has stopped making payments.
reserveDefinition (Investments, Insurance, Financial-banking)
Money retained for some future use.
restructured loanDefinition (Mortgages, Financial-banking)
A mortgage in which basic terms -- such as interest rate, term and monthly payment -- have been changed to prevent foreclosure. Not a normal practice in Canada.
restsDefinition (Financial-banking)
The periodical balancing of an account for the purpose of converting interest into principal, and charging the party liable thereon with compound interest.
retail bankingDefinition (Financial-banking)
Banking services offered to individual customers such as savings accounts, personal loans, cheque cashing, and RRSPs.
retained earningsDefinition (Investments, Taxation, Financial-banking)
All of the profits or losses accumulated from prior years and from the present year's income statement, minus dividends paid to you.
returnDefinition (Investments, Taxation, Insurance, Financial-banking)
Any increase in value or in income you earn on purchase or investment.
return on assets (ROA)Definition (Investments, Financial-banking)
A ratio that shows how profitable a company is when compared to its assets.
return on equity (ROE)Definition (Investments, Financial-banking)
A ratio that shows how profitable a company is when compared to shareholder equity.
return on investment (ROI)Definition (Investments, Financial-banking)
The profit an investment generates, expressed as equity divided by cash flow.
revenueDefinition (Investments, Taxation, Financial-banking)
Money earned by a company from its business activities.
reverse mortgageDefinition (Investments, Mortgages, Taxation, Financial-banking)
A loan that allows an older homeowner to convert built-up equity into cash. The loan comes due when the owner dies, sells the house or moves out.
reverse takeoverDefinition (Investments, Financial-banking, Legal-contracts)
The purchase of a public company by a private company, often to avoid the IPO process.
revolverDefinition (Financial-banking)
A term credit card issuers use for card holders who roll over part of the bill to the next month, instead of paying off the balance in full each month. About seven out of 10 cardholders revolve the debt.
revolving creditDefinition (Mortgages, Financial-banking)
A line of credit that does not have a specified repayment schedule but may require a minimum payment to cover interest and contribute to paying off principal. Typical of credit card loans, chequing account cash reserve or overdraft accounts that have pre-approved lines of credit.
revolving line of credit (RLOC)Definition (Financial-banking)
An agreement to lend a specific amount to a borrower, and to allow that amount to be borrowed again once it has been repaid. Most credit cards offer revolving credit.
right of first refusalDefinition (Real-estate, Financial-banking, Legal-contracts)
An agreement by an owner to give another party an opportunity to buy the property before it is offered to anyone else.
roll in loansDefinition (Mortgages, Financial-banking)
A refinancing loan that rolls any closing costs or fees into the loan. These programs best serve people who have a reasonable amount of home equity, want to reduce their overall interest expense, and plan to stay in their homes.
roll over mortgageDefinition (Mortgages, Financial-banking)
A type of loan where the interest rate is set for a specific term. At the end of this term, the mortgage is said to "roll-over" and the borrower and lender may agree to extend the loan. If satisfactory terms cannot be agreed upon, the lender is entitled to be repaid in full. In this case, the borrower may seek alternative financing.
royalty incomeDefinition (Investments, Taxation, Financial-banking, Legal-contracts)
Payment for the use and exploitation of certain kinds of property, such as artistic or literary works, patents and mineral rights.
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Rate Cap — Royalty Income
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Sale PriceSub-prime Borrower

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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