Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

operating loan — Definition (Financial-banking)

A loan intended for short-term financing, supplying cash flow support or to cover day-to-day operating expenses.

operational expenses (OpEx) — Definition (Taxation, Financial-banking)

Costs accruing from a business's business operations.

option — Definition (Financial-banking, Legal-contracts)

A legal agreement giving someone the right to buy, sell or lease a property or item at specified terms for a specified period.

ordinary dividends — Definition (Investments, Taxation, Financial-banking)

The distribution of a company's profits that are subject to full taxation.

ordinary income — Definition (Taxation, Financial-banking)

Income that does not qualify as a capital gain including wages, interest, dividends, and net income from a business.

original principal balance — Definition (Mortgages, Financial-banking)

The amount borrowed.

origination date — Definition (Mortgages, Financial-banking)

The date on which a loan is funded.

origination fee — Definition (Mortgages, Financial-banking)

The fee a lender charges to process a loan. It usually includes the cost to prepare loan documents, check a borrower's credit history, inspect the property and sometimes conduct an appraisal. CanEquity will in most cases use a lender who doesn't charge this fee or we will cover the cost in full.

other income/expenses — Definition (Investments, Financial-banking)

Any income or expenses earned or disbursed by a business that are not clearly associated to its core operations.

over-the-limit fee — Definition (Financial-banking)

A fee charged for exceeding the credit limit on the card.

overall liquidity ratio — Definition (Investments, Financial-banking)

A method of determining how easily and quickly a company can sell off assets to pay off its debts.

overdraft (DR) — Definition (Financial-banking, Bank Statements)

The amount that a cheque exceeds the available balance in the payor's account; also insufficient funds.

  ➥  Bank account transaction code.

overdraft annual cost — Definition (Financial-banking)

A fee charged by the bank to cover the overdraft feature on a client's chequing account. The client pays the fee even if the overdraft protection is never activated. This fee may be charged in addition to the one-time fee.

overdraft minimum amount — Definition (Financial-banking)

Minimum amount that will be transferred to the accountholder's account if a potential non-sufficient funds (NSF) situation occurs.

overdraft protection — Definition (Financial-banking)

A service that allows a chequing account to be linked to another savings or line of credit to provide protection against insufficient funds or overdrafts.

overnight rate — Definition (Financial-banking)

The interest rate banks use to lend or borrow funds from each other.

owner occupant — Definition (Investments, Mortgages, Real-estate, Financial-banking)

A borrower who resides in the property used as security for the loan.

parking (prk) — Definition (Investments, Financial-banking, Abbreviation)

A term that refers to depositing cash in a high-yield money market account until it is transferred to another account to pay bills.

passbook — Definition (Financial-banking)

A book used to record all banking transactions for a designated account.

passive activity — Definition (Investments, Taxation, Financial-banking)

An activity in which a person does not materially participate such as real estate rentals and limited partnerships.

passive income — Definition (Investments, Taxation, Financial-banking)

Income coming in on a regular basis, with little or no maintenance.

passive loss — Definition (Taxation, Financial-banking)

Loss from a passive activity. Passive loss rules limit the amount of passive loss you can deduct to the total of your other income from passive activities.

payday loan — Definition (Financial-banking)

A short-term loan with an extremely high interest rate.

payee — Definition (Financial-banking)

The name of the person to whom the money in a cheque is to go.

payor — Definition (Financial-banking)

One who makes a payment to another party.

payout phase — Definition (Investments, Annuities, Taxation, Financial-banking)

The phase of a deferred annuity where the annuity begins to make payments to the annuitant.

payroll taxes — Definition (Taxation, Financial-banking)

A tax based on wages and salaries that is deducted from employees pay cheques.

pc banking — Definition (Financial-banking)

A service that allows a bank customer to obtain account information and perform certain bank transactions through a personal computer.

penalty — Definition (Mortgages, Financial-banking, Legal-contracts)

In mortgage terms, a penalty is a set rate or length of time the penalty will be charged based on the remaining loan amount. The penalty is usually three months interest or interest rate differential.

penalty rate — Definition (Financial-banking)

Several percentage points higher than a card's current annual percentage rate, which goes into effect after two late payments. On some cards, a single late payment triggers a penalty rate.

pension — Definition (Investments, Financial-banking)

A retirement plan where money is set aside over many years for an individual's retirement.

per diem interest — Definition (Mortgages, Financial-banking)

Interest that is charged daily; usually refers to the partial month's interest that the buyer pays on the mortgage covering the period from the day of closing to the end of the month.

per item charge — Definition (Financial-banking)

A fee charged to account holders who exceed the allowable number of free transactions for their accounts. Or, the balance in an account does not meet the average monthly balance required to waive the fee.

periodic rate — Definition (Mortgages, Financial-banking)

The interest rate in relation to a specific amount of time. For example, the monthly periodic rate is the cost of credit per month whereas the daily periodic rate is the cost of credit per day.

personal consumption spending — Definition (Taxation, Financial-banking)

What households collectively spend on goods and services.

personal disposable income — Definition (Taxation, Financial-banking)

Personal income minus personal income tax payments. Also called "take-home pay."

personal finance manager — Definition (Financial-banking)

Specialized computer programs that help customers carry out a variety of personal finance activities. These programs typically allow consumers to do much of their work off-line, then dial in to complete their bank transactions.

personal identification number (PIN) — Definition (Financial-banking)

A unique, confidential number or pass code, usually consisting of four to six digits, entered by a customer when using an Automated Teller Machine (ATM) or Interac Direct Payment, that gives the customer access to his or her account.

personal loan — Definition (Mortgages, Financial-banking)

A loan made for personal, family, or household use as opposed to a business-type loan or a long-term mortgage loan to finance real estate.

personal property (PP) — Definition (Insurance, Financial-banking)

Property that is movable and not permanently attached to a dwelling or structure.

personal property taxes — Definition (Taxation, Financial-banking)

Tax paid on real property, intangible, or tangible property. To differentiate between real property and personal property, the tax assessing official must consider the manner in which property is attached to or secured at the location. Also called property taxes.

personal savings — Definition (Investments, Taxation, Financial-banking)

Put own money away.

personalized cheque — Definition (Financial-banking)

A cheque which has your name and account number printed on it.

point — Definition (Mortgages, Financial-banking)

A point equals 1 percent of a mortgage loan. Some lenders charge "origination points" to cover expenses of making a loan. Some borrowers pay "discount points" to reduce the loan's interest rate.

point of sale (POS) — Definition (Financial-banking)

A location where a sales transaction takes place.

policy — Definition (Insurance, Financial-banking, Legal-contracts)

An insurance contract.

policy loan — Definition (Estate-management, Insurance, Financial-banking)

A loan where a life insurance policyholder's death benefit is used as collateral.

portfolio — Definition (Investments, Financial-banking)

A collection of investments.

portfolio lender — Definition (Investments, Mortgages, Financial-banking)

A company that underwrites mortgage loans and keeps them on the books instead of selling them on the secondary market.

possession — Definition (Real-estate, Financial-banking)

Something that is owned.