Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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bootDefinition (Automotive, Real-estate, Financial-banking)
Cash or other property used in an exchange to make the values of property traded equal. For instance, if you trade in a delivery truck on a new model, the cash you pay in addition to your old truck is boot.
borrowDefinition (Real-estate, Financial-banking)
To get a loan of money.
borrowerDefinition (Investments, Mortgages, Financial-banking)
A person who borrows money or obtains a loan.
break-even point (BEP)Definition (Mortgages, Real-estate, Financial-banking)
The point at which expenses meet income or savings. In home finance, the break-even point often refers to the time it takes to recoup the costs of refinancing a loan or paying discount points.
bridge financingDefinition (Mortgages, Real-estate, Financial-banking)
A short-term, high interest loan that allows a seller to purchase a new property before selling an existing property.
bridge loanDefinition (Mortgages, Real-estate, Financial-banking)
A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. The borrower's current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.
bridge mortgageDefinition (Mortgages, Financial-banking)
A short-term loan used to allow a homebuyer to purchase a replacement property while still trying to sell their existing home.
broker (Bkr)Definition (Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation, Legal-contracts)
A person or firm who acts on behalf of another.
broker-agentDefinition (Investments, Insurance, Financial-banking)
An individual, usually in the employ of an insurance company, that is licensed as both an insurance broker and agent.
bull marketDefinition (Investments, Financial-banking)
When stock prices are increasing and it's a healthy market, this is known as a bull market.
business (busn)Definition (Investments, Financial-banking, Abbreviation, Legal-contracts)
A company, either for-profit or non-profit.
business bankruptcyDefinition (Financial-banking)
A bankruptcy case in which the debtor is a business or an individual involved in business and the debts are for business purposes.
business continuation insuranceDefinition (Insurance, Financial-banking)
Insurance that provides coverage in the event that someone integral to the operation of a business dies or becomes disabled.
business interest expenseDefinition (Taxation, Financial-banking)
Interest acquired in business operations can be deducted as a business expense.
business net retentionDefinition (Investments, Insurance, Financial-banking)
A measure of the gross writings retained by a company for their own account.
buyer's marketDefinition (Investments, Real-estate, Financial-banking)
When market conditions favour the buyer.
call deposit accountDefinition (Investments, Financial-banking)
A bank account that combines some features from both savings and checking accounts.
Canada Deposit Insurance Corporation (CDIC)Company Est.1967, Ottawa, Ontario, Canada
A crown corporation that provides deposit insurance against the loss of deposits made with member financial institutions.
  ➥  Government of Canada federal crown corporation.
Canada Education Savings Grant (CESG)Canada
Program recently introduced by the federal government whereby it will invest, in the form of grants, along-side parents who save for their children's education through RESPs. The government will top up contributions made to an RESP by 20% up to a yearly maximum of $400 per beneficiary.
Canada Mortgage and Housing Corporation (CMHC)Company Est.1946, Canada-wide
The Canada Mortgage and Housing Corporation: this is a Federally run institution that provides banks and lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure CMHC 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 "G.E. Capital."
  ➥  Insures Canadian mortgage lenders.
Canada Savings Bond (CSB)Canada
A secure way for Canadians to save. The bonds, which are a form of debt issued by the Canadian government, are cashable, with proper identification, at any time at most Canadian financial institutions.
Canadian Bankers Association (CBA)Company Est.1891, Canada
Professional industry association that provides information, research, advocacy, education and operational support services primarily to the banking industry.
  ➥  One of Canada's oldest business associations.
Canadian Depository for Securities LimitedCompany
Agency responsible for the automatic processing and clearing of all securities transactions in Canada.
Canadian Payments Association (CPA)Company, Canada
This association, which is composed of several financial institutions and the Bank of Canada, operates a national clearing system for financial institution payments.
capDefinition (Mortgages, Financial-banking)
A limit imposed on an item.
capitalDefinition (Investments, Financial-banking)
Money that is used to make money; for example, to buy rental property or a business.
capital adequacy ratioDefinition (Financial-banking)
A ratio of total capital divided by risk-weighted assets and risk-weighted off-balance sheet items. A bank is expected to meet a minimum capital ratio of 8.0% unless a higher ratio is specifically prescribed by the Superintendent of Financial Institutions.
capital assetsDefinition (Investments, Taxation, Financial-banking)
Items that you own for investment or personal purposes, such as stocks, bonds or stamp collections. When you sell a capital asset, depending on the price you earn a capital gain or a capital loss. Gains are taxed at a special rate, and losses can be used in many cases to reduce the amount that is taxed. See also "Capital Gain" or "Capital Loss."
capital cost allowance (CCA)Canada
Capital Cost Allowance is a method of expensing depreciable assets as defined by the Canadian Income Tax Act (ITA).
capital expenditureDefinition (Investments, Real-estate, Financial-banking)
The cost of making an improvement to a property.
capital gain (CG)Definition (Investments, Taxation, Financial-banking)
The profit made by the seller when real estate or other capital assets are sold. Capital gains are taxed more favourably than earned income. However, this can be dependent on your tax bracket and the length of time you owned the asset before it was sold. You could pay approximately one-third to one-half less tax than you would pay on the same amount of earned salary.
capital gain distributionDefinition (Investments, Taxation, Financial-banking)
When the fund sells some of its assets, you receive capital gain distributions or a portion from the sale. This distribution is regarded as a capital gain, not as ordinary dividends such as the interest gained from a bank account. It is important to separate capital gain distributions from ordinary dividends because capital gains are taxed more favourably.
capital gains tax (CGT)Canada
A tax on profits from the sale of real estate or investments.
capital improvementDefinition (Investments, Real-estate, Financial-banking)
Any permanent structure or other asset added to a property that adds to its value.
capital investmentsDefinition (Investments, Real-estate, Financial-banking)
Money used to purchase permanent fixed assets for a business, such as machinery, land or buildings as opposed to day-to-day operating expenses.
capital lossDefinition (Investments, Taxation, Financial-banking)
When an asset is sold for less than what you paid, or less than its adjusted basis, it is a capital loss. However, when it comes to taxes a capital loss is not always bad because you can use it to reduce the amount of income being taxed by the amount of the loss, up to $3,000 per year. If your loss is more significant, the excess (or capital loss carryover) can be carried forward indefinitely until the total loss is used.
capitalizationDefinition (Investments, Mortgages, Taxation, Financial-banking)
An estimate of the value of a rental or commercial property using the rate of return on investment and the property's annual net operating income.
capitalization rateDefinition (Investments, Real-estate, Financial-banking)
An estimated percentage rate of return that a property will produce on the owner's investment.
captive finance companyDefinition (Financial-banking)
A finance company related to a specific dealer or manufacturer.
card holder agreementDefinition (Financial-banking, Legal-contracts)
A written agreement or contract between a credit card holder and the credit issuer that details the terms and conditions of a credit card account. This agreement must include the Annual Percentage Rate, the monthly minimum payment formula, the annual fee if applicable, and the cardholder's rights in billing disputes. Changes to the agreement can be made at any time by the issuer with prior written notice.
carrying costsDefinition (Mortgages, Real-estate, Taxation, Financial-banking)
The cost of maintaining a property.
cash advance feeDefinition (Financial-banking)
A fee charged by the bank for using credit cards to withdraw money generally from an ATM or banking machine. This fee can be a flat fee per transaction or a percentage of the amount being advanced. For example, the fee may be set as: "2% / $10." This means the cash advance fee will be the greater of 2% of the cash advance amount or $10. Banks often limit the fee to a certain dollar amount.
cash cardsDefinition (Financial-banking)
Cash cards, similar to pre-paid phone cards, contain a set amount of value, which can be read by a special cash card reader. Participating retailers will use the reader to debit the card in increments until the value is gone. The cards are like cash -- they have no built-in security, so if lost or stolen, they can be used by anyone.
cash collateralDefinition (Financial-banking, Legal-contracts)
The proceeds of cash collected from the sale of liquid assets while in bankruptcy.
cash flowDefinition (Investments, Mortgages, Taxation, Financial-banking)
The money an investment produces after subtracting cash expenses from income.
cash flow forecastDefinition (Investments, Mortgages, Taxation, Financial-banking)
An estimate of when and how much money will be received and paid out of a business. It usually records cash flow on a month-by-month basis for a period of two years.
cash methodDefinition (Real-estate, Taxation, Financial-banking)
The form of accounting in which you report income in the actual year you receive it and deduct expenses in the year you pay. Most individuals use this method. Under this system, if you built a deck and billed the client in December 1999 but didn't receive the cheque until January 2000, it would be counted as 2000 income, not 1999.
cash surrender value (CSV)Definition (Investments, Estate-management, Annuities, Insurance, Financial-banking)
The liquid value of an insurance policy if the policyholder voluntarily cancels the policy before maturity or an insured event.
casualty and theft lossDefinition (Taxation, Insurance, Financial-banking)
A loss caused by a hurricane, earthquake, fire, flood, theft or similar event that is sudden, unexpected or unusual. You can deduct a portion of personal casualty or theft losses as an itemized deduction.
central bankDefinition (Investments, Mortgages, Financial-banking)
An institution that manages a nation's monetary policy.
Previous Page
Annuity LadderBook Value
Currently Displayed — Page 3
Boot — Central Bank
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Certified ChequeCommutation

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

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