Canadian Financial, Real Estate and Mortgage Glossary

Words categorized under Financial-banking

certified cheque (CC) — Definition (Financial-banking, Bank Statements)

A cheque that a bank guarantees will clear.

  ➥  Bank account transaction code.

charitable gift annuity (CGA) — Canada

A method to facilitate charitable giving whereby an individual transfers assets to a charity in exchange for a tax deduction and lifetime retirement income payments from the charity.

  ➥  A form of planned giving.

chartered banks — Definition (Financial-banking)

Financial institutions regulated under the Bank Act. Chartered banks are designated as Schedule I or Schedule II depending on their ownership.

chattel — Definition (Mortgages, Financial-banking)

Personal property that can be moved.

chattel mortgage — Definition (Mortgages, Financial-banking)

A loan backed by movable personal property. Generally mobile or trailer homes.

cheque (CK) — Definition (Financial-banking, Bank Statements)

A written order for payment of a certain amount of money.

cheque book — Definition (Financial-banking)

A book with blank cheques. The cheques may be personalized or non-personalized.

cheque clearing — Definition (Financial-banking)

When you write a cheque to a person or a company, the cheque is typically cashed when deposited into a bank account. Your chequing account is then debited for the amount of the cheque and the cheque is said to have "cleared."

cheque hold — Definition (Financial-banking)

The length of time that a financial institution can legally hold a cheque before crediting a customer's account balance and allowing the customer to use the funds.

cheque register — Definition (Financial-banking)

A book or log where you can record the details of every transaction made in your chequing account.

cheques returned with statement — Definition (Financial-banking)

Cheques that are cancelled are returned to the account holder in a monthly statement.

chequing account — Definition (Investments, Financial-banking)

A bank account that allows quick access to the money in the account.

child support (CS) — Definition (Investments, Taxation, Financial-banking)

Monthly payments that contribute to the care of a child. Payments must be received continuously for one year to be counted toward qualifying income for a loan.

Child Tax Credit (CTC) — Definition (Taxation, Financial-banking)

A tax break for those who claim eligible dependent children on their tax returns.

  ➥  See Canada Child Tax Benefit (CCTB).

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

A creditor's assertion of a right to payment from a debtor or the debtor's property.

classic card — Definition (Financial-banking)

Brand name for the standard card issued by VISA.

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

A local government's levy on real estate that varies depending on the use of the property. Usually, commercial property is taxed more heavily than residential property where a classified property tax exists.

clearing and settlement (C&S) — Definition (Financial-banking)

The process whereby banks collect or pay out for items drawn on or paid into accounts in their institution. This process enables banks to accept each other's cheques and bank drafts for deposit. The Canadian Payments Association operates Canada's clearing system.

client-based banking software — Definition (Financial-banking)

Customers use money management software and their own computers to access the bank using a modem and a phone line.

closed-account fee — Definition (Financial-banking)

A fee charged for shutting down an account. Sometimes charged if the account is closed before a certain time period has passed.

closed-end lease — Definition (Automotive, Financial-banking)

The most common type of car lease. The lessee may return the car at the end of the lease term, pay any end-of-lease costs, such as the disposition fee, and the lease agreement is over. In a closed-end lease, the lender assumes the risk of predicting the value of the vehicle (its residual value) at the end of the lease's term. Closed-end lease payments are somewhat higher than open-end lease payments.

closely held — Definition (Financial-banking)

Schedule II banks may be closely held, i.e., one party (owner) may hold more than 10% of the outstanding shares. Schedule I banks are prohibited from this type of ownership.

closing costs — Definition (Mortgages, Real-estate, Insurance, Financial-banking, Legal-contracts)

The miscellaneous expenses involved in closing a real estate transaction that are over and above the purchase price. Some of the closing costs include title insurance, appraisal fee.

closing date (cloda) — Definition (Investments, Mortgages, Real-estate, Financial-banking)

The date a buyer takes possession of a property title.

cloud on title — Definition (Real-estate, Financial-banking)

A claim on title to property that could impair the ability to transfer ownership.

co-branded card — Definition (Financial-banking)

A type of affinity card issued through a partnership or alliance between a bank and another retail company. For instance, a large department store may co-brand a card with a bank. The card would have two brand names on it -- the bank's name and the store's name. Usually, the attraction of the card is special deals with the retail partner. Many -- particularly the ones affiliated with airlines that offer air miles -- are popular enough to command a hefty annual fee.

co-maker — Definition (Mortgages, Financial-banking)

Any party that co-signs a promissory note. All co-makers assume responsibility for the loan if any of the other co-signers renege.

co-signer — Definition (Mortgages, Financial-banking, Legal-contracts)

A person who signs a promissory note that is also signed by one or more other parties. All parties take responsibility for the debt if any of the others renege.

collateral — Definition (Mortgages, Real-estate, Financial-banking, Legal-contracts)

Any property pledged as security for repayment of a debt.

collection — Definition (Mortgages, Financial-banking)

The efforts used to bring an overdue mortgage, or other debt current, and the filing of necessary notices to proceed with foreclosure when necessary.

collusion — Definition (Mortgages, Real-estate, Financial-banking, Legal-contracts)

A secret, deceitful agreement by two or more parties to defraud others.

combination account — Definition (Investments, Financial-banking)

An account that is part savings and part chequing. You may write cheques and you will be paid interest if you have enough money in the account.

commerce — Definition (Financial-banking)

The systems and activities that impact business and trade within a nation and abroad.

commercial bank (CB) — Definition (Financial-banking)

A financial institution that provides a broad range of services, from chequing and savings accounts to business loans and credit cards.

commercial banking — Definition (Financial-banking)

Commercial banking centres serve small to medium-sized businesses such as franchising, leasing and cash management services.

commercial blanket bond — Definition (Insurance, Financial-banking)

Insurance that covers losses to businesses due to different forms employee fraud, such as embezzlement and forgery.

commercial forgery policy — Definition (Insurance, Financial-banking)

Insurance that protects businesses from losses due to them unknowingly accepting forged or counterfeit checks as payment.

commercial loan — Definition (Mortgages, Financial-banking)

A loan taken out by a business.

commercial mortgage — Definition (Mortgages, Financial-banking)

A mortgage for commercial property.

commercial paper (CP) — Definition (Financial-banking)

Unsecured notes issued by companies that mature within nine months. Generally, commercial paper is issued only by the larger and more credit worthy companies.

commercial property — Definition (Real-estate, Financial-banking)

A parcel in a district zoned for business.

commingling — Definition (Financial-banking)

Lumping together money from different sources so the sources cannot be distinguished.

commission (comm) — Definition (Investments, Mortgages, Real-estate, Insurance, Financial-banking, Abbreviation)

A fee paid to a salesperson for selling a product to a customer.

commissioners' reserve valuation method — Definition (Investments, Annuities, Insurance, Financial-banking)

A method used to determine the minimum statutory reserves for annuities and insurance products.

commitment — Definition (Mortgages, Real-estate, Financial-banking)

A written agreement from a lender promising to lend money on certain terms for a specified time period.

commitment fee — Definition (Mortgages, Financial-banking)

A fee paid by a borrower to a lender who promises to lend money on certain terms for a specified time period.

common law marriage (CLM) — Definition (Mortgages, Real-estate, Financial-banking, Legal-contracts)

To be recognized as being married without foregoing a matrimonial ceremony.

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

A security that allocates partial ownership in a corporation, but at a lower standing than preferred stocks.

community bank — Definition (Financial-banking)

A bank that is locally owned and operated, but is not part of a bank holding company. Also referred to as an independent bank.

commutation — Definition (Investments, Estate-management, Annuities, Insurance, Financial-banking)

An option given to the beneficiaries of annuities and life insurance policies that allows them to modify the frequency and size of benefit payments.