Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

sale price — Definition (Real-estate, Financial-banking)

The price that is paid for an asset.

sales tax — Definition (Real-estate, Taxation, Financial-banking)

Federal and / or provincial taxes that are applied to purchases.

savings account — Definition (Investments, Financial-banking)

A financial account that pays interest with low risk.

schedule i banks — Definition (Financial-banking)

A designation in the Bank Act that refers to Canadian-owned banks that are widely held, i.e., ones in which no one owner holds more than 10% of shares.

schedule ii banks — Definition (Financial-banking)

A designation in the Bank Act that refers to foreign-owned banks and closely held Canadian banks, i.e., banks in which an owner may hold more than 10% of outstanding stock.

schedule iii banks — Definition (Financial-banking)

Foreign banks not incorporated under the bank act that are allowed to conduct business in Canada.

seasonal unemployment — Definition (Mortgages, Taxation, Financial-banking, Legal-contracts)

The loss of jobs due to changes in the climate and other conditions. Forestry, fishing and construction are affected by climate, while retailing is affected by seasons and holidays. For instance, at Christmas, retail employment is higher than in January.

secondary market — Definition (Investments, Mortgages, Financial-banking)

A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.

secondary mortgage market — Definition (Investments, Mortgages, Financial-banking)

The trade in home loans that are bundled together and sold as securities to investors. It frees money so more people can get mortgages.

secured credit card — Definition (Financial-banking)

A credit card that a cardholder secures with a savings deposit to ensure payment of the outstanding balance if the cardholder defaults on payments. It is used by people new to credit, or people trying to rebuild their poor credit ratings.

secured debt — Definition (Mortgages, Financial-banking)

A debt that is secured by a lien on debtor's property that may be taken by the creditor in case of non-payment by the debtor. A common example is a mortgage loan.

secured loan — Definition (Financial-banking)

Borrowed money that is backed by collateral.

securities/investment dealer — Definition (Investments, Financial-banking)

One who acts as the agent for another party to buy and sell securities and other investments; also an underwriter.

security — Definition (Investments, Real-estate, Financial-banking)

A tradable financial implement that represents ownership, the rights to ownership or debt.

seed funding — Definition (Investments, Financial-banking)

Money used to start a business.

selection bias — Definition (Investments, Insurance, Financial-banking)

A statistical error made when non-random data is added into a dataset.

self employed person (SEP) — Definition (Mortgages, Taxation, Financial-banking)

A person who runs a trade or business, rather than working as an employee for someone else. You are self-employed if you are a sole proprietor or a partner working in a business. You can be an employee and self-employed at the same time if you have an independent business outside your regular employee hours. To qualify for many business tax exclusions and deductions, the enterprise must make a profit in three of five years. In most cases in order to qualify you must take and average of the last 2-3 years tax assessments.

self insurance — Definition (Insurance, Financial-banking)

Setting aside money or assets for a potential future loss.

self-selection bias — Definition (Investments, Insurance, Financial-banking)

A selection bias that occurs when individuals join a sample group voluntarily.

seller's market — Definition (Real-estate, Financial-banking)

Due to either low supply or high demand, the seller can expect to sell quickly with a high sale price.

service charge (SC) — Definition (Financial-banking, Bank Statements)

Fees charged to customers for specific services or as a penalty for not meeting certain requirements such as insufficient funds in a chequing account.

  ➥  Bank account transaction code.

settlement points — Definition (Financial-banking)

Regional collection points in the clearing and settlement system operated by the Canadian Payments Association. Settlement points forward each bank's regional balance to the Bank of Canada in Ottawa at the end of each day to allow the central bank to adjust the banks' balances with the central bank.

share certificate — Definition (Financial-banking, Legal-contracts)

A certificate of deposit issued by a credit union that pays a specific dividend if held for a specific period. It's the credit union equivalent of a certificate of deposit. A penalty is usually assessed if all or any of the principal is withdrawn before maturity.

shared-appreciation mortgage (SAM) — Definition (Investments, Mortgages, Financial-banking)

A home loan in which the lender offers a below-market interest rate in exchange for sharing in the profit when the home is sold. Usually done only with private funds/lenders.

short tax year — Definition (Taxation, Financial-banking)

A tax period less than 12 months long, resulting from a business start-up or the transition to a tax year ending on a different date.

short-term capital gain (STCG) — Definition (Investments, Financial-banking)

Your gain from the sale of a capital asset that you held for one year or less.

short-term capital loss — Definition (Investments, Financial-banking)

Your loss from the sale of a capital asset that you held for one year or less.

short-term liabilities — Definition (Financial-banking)

Money that you have to pay in less than 12 months, including wages, short-term loans, taxes, credit card balances and long-term loans.

simple interest (SI) — Definition (Financial-banking)

Interest computed only on the principal balance, without compounding.

simple interest loan — Definition (Financial-banking)

A method of allocating the monthly payment between interest and principal. The interest charged is determined by the unpaid principal balance on the loan, the interest rate, and the number of days since the last payment. The rest of the payment goes to the principal. Making early payments or additional payments reduces the loan's principal and cuts the total interest paid over the life of the loan.

single premium deferred annuity (SPDA) — Definition (Investments, Estate-management, Annuities, Financial-banking)

A deferred annuity funded with a single payment.

small- and medium-sized enterprises (SMEs) — Definition (Financial-banking)

Limits banks place on businesses to determine there size.

  ➥  A term widely used by the World Bank and the World Trade Organization (WTO).

smart card — Definition (Financial-banking)

A card with an embedded computer chip which stores more information, performs more functions and is more secure than a credit card or debit card.

social insurance number (SIN) — Canada

Every person who has an income or pays taxes must apply for this number, which is assigned by the Government of Canada. You must, by law, provide this number to financial institutions with which you have an interest-bearing deposit account.

  ➥  A nine-digit number that you need to work in Canada or to have access to government programs and benefits. Banks may also request your SIN for tax purposes or to verify credit checks.

Society for Worldwide Interbank Financial Telecommunication (SWIFT) — Company

Global data processing system used by banks.

sole proprietorship — Definition (Investments, Financial-banking, Legal-contracts)

A business owned by an individual where no legal distinction is made between the business and the owner.

solvency — Definition (Investments, Financial-banking)

To be able to meet one's financial liabilities in the short or long term.

specialized financing corporation — Definition (Financial-banking)

A term in the Bank Act referring to specialized business-management services such as making investments, negotiating mergers and acquisitions and many other services traditionally offered as merchant-banking services.

split-funded annuity — Definition (Investments, Estate-management, Annuities, Financial-banking)

Two annuities purchased together, one with a deferred payout and the other with an immediate payout.

spread — Definition (Mortgages, Financial-banking)

The difference between the interest rate charged to borrowers and the interest rate paid to depositors.

sprinkling provision — Definition (Estate-management, Insurance, Financial-banking)

A provision that gives a trustee the authority to distribute life insurance death benefits as he or she sees fit, and to those who need the money the most.

stagflation — Definition (Investments, Financial-banking)

A time period where the unemployment rate and the rate of inflation are both relatively high.

standard card — Definition (Financial-banking)

The basic card offered by issuers. Customers with higher incomes and good credit reports can qualify for the higher-limit gold and platinum cards.

standby commitment — Definition (Mortgages, Financial-banking)

A commitment from a lender to make a loan in a specified period of time on specified terms with the understanding that the borrower will not likely draw down the funds.

statement — Definition (Mortgages, Financial-banking)

A detailed record of transactions in a bank customer's account(s) for a certain period, usually each month, which shows debits, credits, transfers, payroll deposits, account balance, cheque fees, service and interest charges, ATM activity, etc.

step down lease — Definition (Real-estate, Financial-banking)

A lease providing for decreases in rental payment at specified dates.

step up lease — Definition (Real-estate, Financial-banking)

A lease providing for increases in rental payment at specified dates.

stock — Definition (Investments, Financial-banking, Legal-contracts)

A share of the ownership of a company.

sub account — Definition (Financial-banking)

A separate financial account used to keep track of a department's finances.

sub-prime borrower — Definition (Mortgages, Financial-banking)

A borrower with a less-than-perfect credit report due to late payments or a default on debt payments.