Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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subordinate loanDefinition (Mortgages, Financial-banking)
A mortgage whose priority is below that of another mortgage; i.e., a second or third mortgage or a home-equity loan.
surplusDefinition (Taxation, Financial-banking)
When an entity's income exceeds its expenses.
survival analysisDefinition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
A statistical analysis of how likely someone or something will survive to a set date.
swapDefinition (Investments, Financial-banking)
An agreement between two businesses to exchange commodities, payments or other financial products to reduce the risk of volatile market conditions or to obtain a better price or rate. For example, interest rate swaps, where floating rate interest is exchanged for fixed rate interest, protects a corporation against rises in rates or allows it to take advantage of a better rate. A cross-currency swap enables two parties to enter into an agreement in which one exchanges its currency for the other's to meet their separate requirements.
sweat equityDefinition (Mortgages, Financial-banking, Legal-contracts)
The value of the work put into a house by its owner. This can be used in place of a full down payment. Up to and including 50% of a down payment.
syndicated loansDefinition (Financial-banking)
Loans given to a company that are backed by a group of banks who share the risk of a large transaction. There is usually a lead bank and several participating banks.
takeoverDefinition (Investments, Financial-banking, Legal-contracts)
The purchase of a company by another.
tandem loanDefinition (Mortgages, Financial-banking)
When one asset, usually a house, has two loans taken out on it.
tangible personal property (TPP)Definition (Financial-banking)
Assets other than real estate that physically exist. Business equipment and vehicles are tangible personal property whereas stock certificates and franchises only represent value and are therefore intangible property.
tax (TX)Definition (Taxation, Financial-banking, Bank Statements)
A levy paid by an individual or entity that is collected by a government.
  ➥  Bank account transaction code.
tax credit (TC)Definition (Taxation, Financial-banking)
Tax credits are used to reduce the amount of the tax owed. Tax credits are more valuable than deductions because they directly reduce the amount of tax owed, rather than reducing the amount of income that is taxed.
tax deductionDefinition (Taxation, Financial-banking)
An expense that governments allow you to subtract from your income before computing your income tax.
tax deferralDefinition (Taxation, Financial-banking)
The postponement of taxes to a later year, usually by recognizing income or a gain at a later time. Remember, this only delays your tax liability; it doesn't eliminate it.
tax deferred annuity (TDA)Definition (Investments, Estate-management, Annuities, Taxation, Financial-banking)
A type of annuity where taxes are deferred until the annuitant decides to withdraw money from the annuity.
  ➥  More commonly known as a Tax Sheltered Annuity (TSA).
tax exempt (TE)Definition (Taxation, Financial-banking)
Income that is not subject to tax. Income exempt from federal tax may, however, be subject to provincial taxation.
Tax Instalment Payment Plan (TIPP)Canada
A popular property tax payment plan that allows you to pay your taxes monthly without any penalties or additional charges.
tax liabilityDefinition (Taxation, Financial-banking)
The total amount of tax you owe.
tax lienDefinition (Mortgages, Real-estate, Taxation, Financial-banking)
A claim, or obstacle, to the sale of property because of unpaid taxes. The property's title can't be transferred until liens are paid.
tax refundDefinition (Taxation, Financial-banking)
To receive money back from the government.
tax sheltered annuity (TSA)Definition (Investments, Estate-management, Annuities, Taxation, Financial-banking)
An arrangement where employees are given the option to make tax-deferred contributions to an annuity set up by their employer.
  ➥  See also Tax Deferred Annuity (TDA).
Tax-Free Savings Account (TFSA)Canada
A savings account for Canadians where income earned is not taxed.
tax-shelteredDefinition (Investments, Estate-management, Annuities, Taxation, Financial-banking, Legal-contracts)
A savings or investment plan that offers significant tax savings.
taxable incomeDefinition (Taxation, Financial-banking)
Income that is subject to taxation after accounting for adjustments, exemptions, and deductions.
teaser rateDefinition (Mortgages, Financial-banking)
Often called the introductory rate, it is the below-market interest rate offered to entice customers to switch credit cards or lenders.
tenancy by the entirety (TBE)Definition (Estate-management, Real-estate, Financial-banking)
An arrangement where spouses have an undivided interest in a property. If a spouse dies, the other retains ownership.
tenantDefinition (Real-estate, Financial-banking, Legal-contracts)
One who rents property.
termDefinition (Investments, Mortgages, Insurance, Financial-banking, Legal-contracts)
The length of time you commit to repay a lender or bank at an agreed upon interest rate and payment schedule. The interest rate usually remains constant during this term unless the commitment states otherwise. For example, a five year fixed rate mortgage has a term of five years.
term deposit (TD)Definition (Investments, Financial-banking)
An investment product in which you deposit a fixed sum of money for a set period of time and are paid interest.
term loan (TL)Definition (Financial-banking)
A loan intended for medium-term or long-term financing to supply cash to purchase fixed assets such as machinery, land or buildings or to renovate business premises.
testimonialDefinition (Financial-banking)
A statement of support for a product or service.
third-party administrator (TPA)Definition (Insurance, Financial-banking)
A claims administrator that is hired to process insurance claims and/or employee benefits for another party.
third-party originatorDefinition (Financial-banking)
One who takes all or part of the mortgage application and transfers or sells it to a lender.
time depositDefinition (Financial-banking)
A type of deposit account with a stated maturity at which time the account reverts to another type of account or is "rolled over" for another fixed period of time.
title loanDefinition (Automotive, Financial-banking)
A loan that uses a car as collateral.
total annual loan cost (TALC)Definition (Mortgages, Financial-banking)
A method of finding the annual cost of a reverse loan.
total expense ratio (TER)Definition (Taxation, Financial-banking)
The percentage of monthly debt payments compared to total before-tax income.
trade equityDefinition (Mortgages, Real-estate, Financial-banking)
A swap of property, such as real estate or a car, as part of a down payment for other real estate.
transactionDefinition (Financial-banking)
Action in a bank account. It may be a deposit, withdrawal, debit card payment, service charge or interest payment.
transaction date (TRNSDATE)Definition (Financial-banking)
The date that goods or services were purchased or the date the cash advance was made.
TransUnion (TU)Definition (Mortgages, Companies-associations, Financial-banking)
One of the major Canadian credit bureau companies along with Equifax.
  ➥  See TransUnion Canada.
travellers' chequesDefinition (Financial-banking)
These are a safe way to carry large amounts of money if you are going on a trip. They are considered to be the same as cash, but can be replaced if they are lost or stolen. You can buy them at your bank for a small fee. If you have a special service package, you may not have to pay this fee.
treasury billsDefinition (Investments, Financial-banking)
Short-term government obligations that are payable to the bearer and sold on a discount basis; the difference between a T-bill's market or discounted price and its face or redemption value is effectively interest if the T-bill is held to maturity.
trustDefinition (Estate-management, Financial-banking)
A fund established like a will, specifying how money or property will be disbursed, lists the recipients or beneficiaries and names one or more trustees to manage the assets. An irrevocable trust can't be changed after the terms are finalized; a revocable trust has more legroom in how much can be transferred, but is usually costlier to maintain.
trust accountDefinition (Estate-management, Financial-banking)
An account used by a law firm or real estate agent to handle earnest money, funds set aside for repairs and other money that the buyer and seller put up before closing.
trust companyDefinition (Estate-management, Financial-banking, Legal-contracts)
A company that acts as a trustee (an entity that controls financial assets on the behalf of another).
trusteeDefinition (Estate-management, Financial-banking)
A person who holds and manages assets for the benefit of beneficiaries.
two-tier healthcareDefinition (Taxation, Insurance, Financial-banking, Legal-contracts)
A situation where public healthcare is available to all people, but private healthcare can be purchased by those who want it.
unaffiliated investmentsDefinition (Investments, Insurance, Financial-banking)
Investments in assets made by an insurance company where they have no control over the assets.
underpayment penaltyDefinition (Taxation, Financial-banking)
A penalty for not paying enough total estimated tax and withholding. You can avoid underpayment penalties by paying a percentage amount of last year's tax due or of the current year's expected tax due. You may pay the taxes in combined estimated and withholding tax payments.
underwriterDefinition (Investments, Mortgages, Insurance, Financial-banking)
An entity that issues and distributes financial products including equity capital, credit, mortgages, and insurance.
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Sale PriceSub-prime Borrower
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Subordinate Loan — Underwriter
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Underwriters AssociationZero Balance

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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