Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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underwriters associationDefinition (Insurance, Financial-banking)
A group of underwriters in a specific field who join together to maintain professional standards.
underwriting (UW)Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)
Assessing individuals for eligibility and issuing and distributing a financial product such as insurance, equity capital or credit.
underwriting expensesDefinition (Investments, Mortgages, Insurance, Financial-banking)
The expenses accumulated by an insurance company while underwriting a product.
underwriting guideDefinition (Mortgages, Insurance, Financial-banking)
The rules and guidelines an underwriter must follow while writing policies.
underwriting incomeDefinition (Investments, Mortgages, Insurance, Financial-banking)
The income earned by an insurer from underwriting in a certain amount of time.
underwriting riskDefinition (Investments, Mortgages, Insurance, Financial-banking)
The total amount of risk an entity takes on from underwriting something.
unearned incomeDefinition (Taxation, Financial-banking)
Income such as interest, dividends, capital gains or rents, as opposed to earned income, such as wages, tips and salaries.
unemployment rateDefinition (Investments, Financial-banking)
The percentage of the labour force that is not employed but currently seeking work.
unsecured claimDefinition (Financial-banking)
A claim or debt where the creditor has no guarantee of repayment because collateral is not required from the borrower. Credit is granted solely on an assessment of the debtor's future ability to repay the claim or debt.
unsecured debtDefinition (Financial-banking)
Debt that is not guaranteed by the pledge of any collateral. Most credit cards are unsecured debt, which is a main reason why their interest rate is higher than other forms of lending, such as mortgages, which employ property as collateral.
unsecured loanDefinition (Financial-banking)
An advance of money that is not secured by collateral.
upside-downDefinition (Automotive, Mortgages, Real-estate, Financial-banking)
A position that consumers find themselves in when the outstanding balance of a loan is higher than the current fair market value of the property purchased with the loan. See also "Depreciation."
useful lifeDefinition (Real-estate, Financial-banking)
The number of years depreciable business property is expected to be productive and in use.
usurious rateDefinition (Financial-banking)
An interest rate that is unnecessarily high or well above legal rates. For example, sometimes intangible property taxes are applied to income from usurious rates.
usuryDefinition (Financial-banking)
Illegal, excessive interest.
valuable considerationDefinition (Financial-banking, Legal-contracts)
The granting of some beneficial right, interest, profit, or suffering of some detrimental forbearance, loss or default by one party in exchange for the performance of another.
valuationDefinition (Investments, Real-estate, Insurance, Financial-banking)
The estimation of a property's price value through an appraisal.
variable annuity (VA)Definition (Investments, Estate-management, Annuities, Financial-banking)
An annuity where the payments received by the annuitant in the income phase of the annuity vary depending on how well the insurer's investment portfolio has performed.
variable interest rateDefinition (Mortgages, Financial-banking)
Percentage that a borrower pays for the use of money, and which moves up or down periodically based on changes in other interest rates.
variable rateDefinition (Mortgages, Financial-banking)
A floating percentage value that fluctuates based on certain conditions.
vendorDefinition (Real-estate, Financial-banking)
The seller of a property.
vendor take backDefinition (Mortgages, Real-estate, Financial-banking)
Where the seller of the property provides all or some of the financing in order to sell the property.
venture capital (VC)Definition (Investments, Financial-banking)
Financial capital given to startup companies.
verification of employment (VOE)Definition (Mortgages, Financial-banking, Legal-contracts)
Confirmation that a loan applicant is telling the truth about where he or she works and how much he or she makes.
Visa (V)Definition (Financial-banking)
A type of credit card that is distributed by financial institutions around the world. A VISA card holder borrows money against a credit line and repays that money with interest if a balance is carried over from month to month.
  ➥  A brand of credit card.
void chequeDefinition (Financial-banking, Legal-contracts)
A check with the word "VOID" written on the face that cannot be cashed.
voluntary life insuranceDefinition (Estate-management, Insurance, Financial-banking)
Life insurance offered as part of an employee benefit package where the employee agrees to pay the insurance premiums.
waiting periodDefinition (Insurance, Financial-banking, Legal-contracts)
The amount of time that must pass before something occurs.
walk-away leaseDefinition (Automotive, Financial-banking)
The most common type of car lease, also known as a closed-end lease. The lessee may return the car at the end of the lease term, pay any end-of-lease costs, such as the disposition fee, and the lease agreement is over. In a closed-end lease, the lender assumes the risk of predicting the value of the vehicle (its residual value) at the end of the lease's term. Closed-end lease payments are somewhat higher than open-end lease payments.
warrantyDefinition (Real-estate, Financial-banking, Legal-contracts)
A document certifying clear title to a property.
withdrawal (WD)Definition (Financial-banking, Bank Statements)
Taking money out of a bank account or financial instrument.
  ➥  Bank account transaction code.
World Trade Organization (WTO)Company Est.1995
An organization that promotes free trade between nations.
  ➥  Deals with the global rules of trade between nations.
wraparound annuityDefinition (Investments, Estate-management, Annuities, Financial-banking)
An annuity that allows the annuitant to control how funds in the annuity are invested.
year-end statementDefinition (Mortgages, Taxation, Financial-banking)
A report sent to the borrower each year. The report shows how much was paid in taxes and interest during the year, as well as the remaining mortgage loan balance at the end of the year.
yearly price protection methodDefinition (Investments, Insurance, Financial-banking)
A calculation used to determine the annual cost of protection for insurance policies with savings components.
yield-to-maturity (YTM)Definition (Investments, Financial-banking)
The internal rate of return on an investment. Typically takes into account all investment returns and their timing.
zero balanceDefinition (Financial-banking)
What shows on a credit card customer's bill when the outstanding balance has been paid and no new charges have been incurred during the billing cycle.
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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
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Notable Terms

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Important Tip on Credit Card Debt
Credit card interest rates average at around 18.9 per cent. You, like many other Canadians, may have over ten thousand dollars charged to your credit card, but, if you only make the minimum required monthly payment of 2 per cent ($200 the first month) that $10,000 in credit card debt will ultimately take more than 57 years and cost around 40,000 dollars to fully pay off.

Using a home equity loan will allow you to eliminate the high interest credit card (and by eliminate we mean cut up) and consolidate the debt to a low interest rate mortgage payment.