Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

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debit card (DC)Definition (Financial-banking)
A payment card that is linked directly to a customer's bank account. Some cards require a personal identification number. Others require a customer's signature. A PIN-based or direct debit card removes a purchase price from a customer's chequing account almost immediately. A signature-based or deferred debit card has a Visa or MasterCard logo and removes the purchase price from a customer's bank account in two or three days.
debtDefinition (Investments, Mortgages, Financial-banking)
Money one person or firm owes to another person or firm.
debt consolidationDefinition (Investments, Mortgages, Financial-banking)
The replacement of multiple loans with a single loan, often with a lower monthly payment and a longer repayment period. It's also called a consolidation loan. CanEquity has access to Canada's best debt consolidation products, for more info about debt consolidation see our debt consolidation page.
debt issuesDefinition (Investments, Financial-banking)
The issuance of bonds or other forms of debt on the public markets.
debt-to-income ratioDefinition (Mortgages, Financial-banking)
The percentage of an individual's income that is used to repay debt.
debt/equity ratioDefinition (Investments, Financial-banking)
A comparison of debt and equity used to measure the health of a business.
debtorDefinition (Mortgages, Financial-banking)
A person who has filed a petition for relief under the bankruptcy laws.
declining life insuranceDefinition (Mortgages, Insurance, Financial-banking)
Life insurance with a decreasing death benefit, often used to insure mortgage debt.
deductionsDefinition (Taxation, Financial-banking)
Expenses the government allows you to subtract from your taxable income. If you have taxable income of $31,000 and deductions of $4,000, then you would figure how much tax you owe on the difference -- $27,000.
defaultDefinition (Mortgages, Financial-banking)
When a borrower fails to fulfill the obligations of a loan or lease.
deferred annuityDefinition (Investments, Annuities, Taxation, Financial-banking)
An annuity that makes payments to the annuitant at some date in future instead of immediately.
deficitDefinition (Investments, Taxation, Financial-banking)
When expenses surpass income or liabilities surpass assets.
deflationDefinition (Investments, Financial-banking)
An actual decline in the general level of prices in the economy.
delinquencyDefinition (Mortgages, Financial-banking)
Failure to make mortgage payments when mortgage payments are due.
demand loanDefinition (Financial-banking)
A loan that must be repaid in full, on demand.
depositDefinition (Mortgages, Real-estate, Financial-banking)
An act of putting a sum of money in to a bank account.
deposit insuranceDefinition (Insurance, Financial-banking)
The Canada Deposit Insurance Corporation insures depositors' funds to a maximum of $60,000 per depositor, per institution, with some exceptions, in the event of the failure of a federal financial institution. Deposits in some provincial financial institutions are also covered.
depreciationDefinition (Investments, Real-estate, Insurance, Financial-banking)
The gradual loss of value of a building or other property because of age or natural wear.
depressionDefinition (Investments, Real-estate, Financial-banking)
A prolonged downturn in the economy and level of business activity.
derivativesDefinition (Investments, Financial-banking)
Financial contracts whose value is derived from the value of some underlying asset, rate or index. Derivatives are used as risk-management tools by governments and corporations to reduce exposure to risk, mainly related to fluctuations in foreign-exchange and interest rates. Derivative instruments include swaps, options, futures and forward contracts and are used by banks in two principal activities: sales/trading and asset/liability management.
direct cheque printersDefinition (Financial-banking)
These operations offer lower prices and greater selection than chequing customers get through their banks. Many of these printers are also printing cheques for banks that use outside printers. Customers must supply most direct cheque companies with a voided cheque or a reorder form from a current batch of cheques and a deposit slip. Names and addresses must match with information on file at the account holder's bank.
direct debit (DD)Definition (Financial-banking)
A means of authorizing recurring payments (e.g., mortgage payments, insurance premiums) to be drawn on an account.
direct deposit (DD)Definition (Taxation, Financial-banking)
An automatic deposit of wages or benefits to a customer's bank account.
direct financingDefinition (Financial-banking)
When a buyer obtains financing through an outside financial institution rather than through the dealer.
direct fund transferDefinition (Financial-banking)
Similar to a direct deposit.
direct taxDefinition (Taxation, Financial-banking)
A tax that is paid straight to the government.
disclosureDefinition (Mortgages, Real-estate, Financial-banking, Legal-contracts)
A statement listing potential defects to a property, such as the possible existence of lead paint or radon.
disinflationDefinition (Investments, Financial-banking)
A reduction in the inflation rate as a result of either government policy or a decline in economic activity.
distressDefinition (Mortgages, Real-estate, Financial-banking)
The right of one party to sell real or personal property belonging to another party to pay unpaid or overdue debt.
distressed propertyDefinition (Real-estate, Financial-banking)
Property that is in poor condition, or whose owner is in poor financial condition.
dividendDefinition (Investments, Taxation, Financial-banking)
Distribution of earnings to shareholders. In credit unions, it's the money paid to members for deposits, similar to the interest banks pay to their customers for deposits.
documentary creditDefinition (Financial-banking, Legal-contracts)
Written undertaking by a bank on behalf of an importer authorizing an exporter to draw drafts on the bank up to a specified amount under specific terms and conditions. They are used to facilitate international trade. In the United States these instruments are called commercial letters of credit.
down paymentDefinition (Mortgages, Financial-banking)
The portion of the purchase price a buyer pays, in cash, at the time the loan originates.
draw periodDefinition (Mortgages, Financial-banking)
On a line of credit, the draw period is the fixed time when a borrower can make withdrawals from the account. After the draw period expires, the borrower can renew the credit line or may be required to pay the outstanding balance in full, or over time.
due-on-sale clauseDefinition (Mortgages, Financial-banking, Legal-contracts)
A condition of a mortgage that states that the loan must be paid when the house is sold. Commonly used in reverse mortgage lending.
e-chequeDefinition (Financial-banking)
An electronic version of a paper cheque. The account holder writes an e-cheque using a computer or other type of electronic device and transmits the e-cheque to the payee electronically. Like paper cheques, e-cheques are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, e-cheques are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the e-cheque, receives credit, and the payee's bank clears the e-cheque to the paying bank. The paying bank validates the e-cheque and then charges the cheque writer's account.
early closing cost reimbursementDefinition (Financial-banking)
Some line-of-credit lenders waive underwriting costs when a line is opened in anticipation of future profits. If a line is then closed early, these institutions impose those fees retroactively.
early withdrawal penaltyDefinition (Investments, Insurance, Financial-banking)
A depositor forfeits interest or is charged a service fee for either withdrawing funds or closing a time deposit before the maturity date.
earned incomeDefinition (Taxation, Financial-banking)
Money earned through wages, salaries, tips, net earnings (if self-employed), and any other income received for work or personal services. Investment income, such as dividends and interest, is not counted as earned income.
economic growthDefinition (Investments, Financial-banking)
The rate of change in output from one year to the next.
economic indicatorsDefinition (Investments, Financial-banking)
Statistics that help determine how the economy is faring. They include the Consumer Price Index, housing starts, and unemployment rates, among others.
effective ageDefinition (Real-estate, Insurance, Financial-banking)
An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.
eft/posDefinition (Financial-banking)
Electronic funds transfer (EFT) at the point of sale (POS).
electronic cashDefinition (Financial-banking)
Also known as e-cash. A system used to transfer cash over the Internet to pay for goods and service.
electronic commerceDefinition (Financial-banking)
The purchase or sale of products and services through an electronic system such as the Internet.
electronic data interchange (EDI)Definition (Financial-banking)
EDI is a system that companies use to exchange business information electronically, virtually eliminating paperwork.
electronic filing (EF, NETFILE)Definition (Taxation, Financial-banking)
Taxpayers can now file their tax information with personal computers and tax preparation software. The information goes directly to Revenue Canada and they can directly deposit refunds into the taxpayer's bank account.
electronic funds transfer (EFT)Definition (Financial-banking)
The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
  ➥  Also known as e-Transfer.
Employment Equity Act (EEA)Canada
A federal statute that requires employers with 100 or more employees to eliminate any practices in the workplace discriminating against four designated groups of people who have historically been disadvantaged in the labour market: women; people who, by reason of race or colour, are members of visible minority groups; aboriginal peoples; and persons with disabilities.
employment insurance (EI)Canada
A Service Canada program where premiums are paid by taxpayers and benefits are provided for the unemployed.
  ➥  Formerly known as Unemployment Insurance (UI).
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Compound InterestDebit Bureau
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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
Zero Balance

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