Canadian Financial, Real Estate and Mortgage Glossary

Banking Terms

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1st Choice Savings and Credit UnionBank, Alberta, Canada
  ➥  A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages.
acceleration clauseDefinition (Financial-banking, Legal-contracts)
A provision within a document that explains how the lender expects payment for a loan, in due haste.
Accent Credit UnionBank, Saskatchewan, Canada
ACCESS Credit UnionBank, Manitoba, Canada
account (acct)Abbreviation (Abbreviation)
account agreementDefinition (Financial-banking, Legal-contracts)
An agreement that you sign and which lists your rights and responsibilities and the bank's rights and responsibilities for the bank account.
account of (AO)Acronym
accounting methodDefinition (Financial-banking)
The method used by a business or individual to keep records. Most individuals and small businesses use the cash method, although businesses that maintain inventory are required to use the accrual method. See also "Accrual Method" or "Cash Method."
Accounting, Banking and Compensation Branch (ABC)Canada
accounts receivable conversion (ARC)Acronym
Conversion of paper cheques to Automated Clearing House (ACH) debits.
accrual methodDefinition (Investments, Taxation, Financial-banking)
Business accounting in which you report income in the year you earned it and expenses in the year you incur them, rather than reporting income and expenses when you receive payment or when you pay the expenses. Under this method, if you built a deck and billed the client in December 1999, the amount you charged would be reported in 1999 as income even if you didn't get the payment until January 2000. If you own a business that maintains an inventory, you are required to use the accrual method.
accrueDefinition (Mortgages, Financial-banking, Legal-contracts)
To gather together an amount often over a period of time.
accrued interestDefinition (Mortgages, Financial-banking)
Interest which has already been earned but has not yet been paid.
acid-test ratioDefinition (Investments, Financial-banking)
A ratio that determines the liquidity of a company without requiring the company to sell assets or inventory.
acquiring financial institutionDefinition (Financial-banking)
Merchants must maintain an account with an acquiring financial institution to receive credit for credit card transactions. Daily credit card totals are deposited into the merchant's account minus any fees.
acquisition feeDefinition (Mortgages, Financial-banking)
A fee charged by some leasing companies for originating the loan, just as mortgage lenders charge points as an origination fee. This fee is often not specified in a contract, but rolled into the capitalized cost when calculating monthly payments.
active incomeDefinition (Taxation, Financial-banking)
Active income refers to wages, tips, and profits from your business or employment that you partake in. It also includes portfolio income such as interest and dividends, but you cannot usually offset active income with passive losses.
active participantDefinition (Financial-banking)
Actively enrolled in an employer's retirement plan.
actuarial tableDefinition (Investments, Insurance, Financial-banking)
A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
actuaryDefinition (Investments, Insurance, Financial-banking)
An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.
add-on interestDefinition (Mortgages, Financial-banking)
Interest that is computed at the beginning of the loan, then added to the principal, so that all must be repaid, even if the loan is paid off early.
additional principal paymentDefinition (Mortgages, Financial-banking)
Extra money included with a loan payment to pay off the amount owed faster. Over time, this practice reduces the amount of interest paid.
Adjala Credit UnionBank, Ontario, Canada
adjustable-rate mortgage (ARM)Definition (Mortgages)
A type of mortgage loan program in which the interest rate and payments may be adjusted as frequently as every month. The principal loan balance or term of the loan may also be adjusted to reflect the rate change. The purpose of the program is to allow mortgage interest rates to fluctuate with market conditions.
  ➥  A type of variable rate mortgage product.
adjusted balanceDefinition (Financial-banking)
A method used by some card issuers in which they subtract all payments made during the month, then add the finance charges.
adjusted basisDefinition (Real-estate, Financial-banking)
The amount you use to determine your profit or loss from a sale or exchange of property.
adjusted cost basisDefinition (Insurance, Financial-banking)
The amount paid for an item, plus the amount paid for improvements, minus losses and depreciation. When the owner sells the item, the difference between the sales price and the adjusted cost basis is the profit or loss.
adjustment (AD)Acronym (Bank Statements)
  ➥  Bank account transaction code.
advance line of credit (ALOC)Acronym
Advance Savings Credit Union (ASCU)Bank, New Brunswick, Canada
advanced commercial banking system (ACBS)Acronym
affinity cardDefinition (Financial-banking)
A credit card (usually Visa or MasterCard) that has a promotion arrangement with an affiliated organization (often a charity or non-profit group). The logo of the group appears on the card and the group usually gets a percentage of the sales made on the card.
Affinity Credit UnionBank, Saskatchewan, Canada
African Development Bank (AfDB)Company
after sight (A/S)Acronym
agency (agcy)Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation, Legal-contracts)
A relationship between two parties -- a client and an agent -- in which the agent represents the client in transactions with a third party.
agency closingDefinition (Mortgages, Real-estate, Financial-banking, Legal-contracts)
The use of a title company to supervise the meeting where the property is transferred and mortgage is settled.
Airline Financial Credit Union (AFCU)Bank Est.1950, Mississauga, Ontario, Canada
Alameda Credit UnionBank, Saskatchewan, Canada
Aldergrove Credit UnionBank, British Columbia, Canada
alimonyDefinition (Taxation, Financial-banking, Legal-contracts)
Monthly payments received by an ex-spouse. Payments must be received continuously for one year to be counted toward qualifying income for a loan.
all-in-one (AIO)Acronym
allocated transfer risk reserves (ATRR)Acronym
Alterna Savings & Credit UnionBank, Ontario, Canada
amortizationDefinition (Mortgages, Financial-banking)
Amortization refers to the process of gradually paying down the principal of a loan. Each payment toward the principal reduces your loan by that amount. This is different than an interest-only loan payment where the principal balance is never reduced. Amortization for a mortgage loan in Canada is normally 25 years, but can be as few as 5 years.
amortization periodDefinition (Mortgages, Financial-banking)
The amount of time it will take to pay off a mortgage by making routine payments.
amortization scheduleDefinition (Mortgages, Financial-banking)
A detailed table showing the amortization of a loan which includes the beginning principal amount, period payments, the interest portion of each payment, the principal reduction portion each payment, and the ending balance. The Canadian Equity Group has developed a mortgage rate calculator which will generate a perfect example of an amortization schedule.
amortization tableDefinition (Mortgages, Financial-banking)
A mathematical formula used to calculate monthly mortgage payments based on the borrowed loan amount, the interest rate, and the loan term.
amortization termDefinition (Mortgages, Financial-banking)
The time required to amortize (repay) an entire mortgage loan.
amortized loanDefinition (Mortgages, Financial-banking)
A loan that is completely paid off, interest and principal, by a series of regular payments that are equal or nearly equal.
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1st Choice Savings and... — Amortized Loan
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Search the Glossary

Index of Banking Terms

Page 1: 1st Choice Savings and...
Amortized Loan
Page 2: Amount Financed
Automatic Transfer of Loan...
Page 3: Automatic Transfer Service
Before-tax Income
Page 4: Belgian-Alliance Credit...
Caisse d'économie Desjardins...
Page 5: Caisse d'économie Desjardins...
Caisse Desjardins de Hull
Page 6: Caisse Desjardins de...
Caisse Desjardins de Saint...
Page 7: Caisse Desjardins de Saint...
Caisse Desjardins du Haut...
Page 8: Caisse Desjardins du Lac des...
Caisse populaire de Field
Page 9: Caisse populaire de...
Caisse populaire Desjardins...
Page 10: Caisse populaire Desjardins...
Caisse populaire Desjardins...
Page 11: Caisse populaire Desjardins...
Caisse populaire Desjardins...
Page 12: Caisse populaire Desjardins...
Caisse populaire Madawaska
Page 13: Caisse populaire Mer et...
Canadian Payments...
Page 14: Canadian Western Bank
Cheques Returned with...
Page 15: Chequing Account
Commercial Real Estate...
Page 16: Commingling
Page 17: Credit Card
Page 18: Declining Life Insurance
Page 19: Earl Grey Credit Union
Etobicoke Aluminum Employees...
Page 20: Etobicoke Teachers Credit...
Page 21: Foam Lake Savings & Credit...
Gross International Reserves
Page 22: Gross Overtime
Page 23: Instant Teller
International Investment...
Page 24: International Journal of...
Ladysmith & District Credit...
Page 25: Lafleche Credit Union
Local Taxes
Page 26: Lock-in
Monetary Policy Committee
Page 27: Monetary Policy Report...
Non-owner Occupant
Page 28: Non-Performing Loan
Ordinary Dividends
Page 29: Ordinary Income
Personal Property Taxes
Page 30: Personal Savings
Private Lender
Page 31: Privately Held Company
Remaining Balance
Page 32: Remaining Term
Same Day Funds Settlement
Page 33: Sandhills Credit Union
Split-Funded Annuity
Page 34: Spread
Tax Liability
Page 35: Tax Lien
Underwriting Expenses
Page 36: Underwriting Guide
Weyburn Credit Union
Page 37: Williams Lake and District...
Zero Balance

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