Canadian Financial, Real Estate and Mortgage Glossary

Auditing and Assurance Standards Oversight Council (AASOC) — Canada

authorized user — Definition

Any person to whom you give permission to use a credit card account.

automated banking machine (ABM) — Acronym

  ➥  Sometimes incorrectly referred to as an Automatic Bank Machine.

automated clearing house (ACH) — Acronym

Secure electronic funds transfer (EFT) system that connects all US financial institutions.

automated clearing settlement system (ACSS) — Acronym

Automated Consumer Dispute Verification (ACDV) — Acronym

automated pre-approval process (APP) — Acronym, Important

automated teller machine (ATM) — Canada

A terminal activated by a magnetically encoded card that allows customers of a bank or other financial institution to conduct everyday banking tasks such as deposits, withdrawals and transfers between accounts. An interconnection of these terminals allows customers to conduct certain transactions around the nation and the world; usually subject to a surcharge fee.

  ➥  See also Automated Banking Machine (ABM).

automated valuation model (AVM) — Acronym, Important

An accurate "real-time" estimate of market value for residential properties in Canada.

automated valuation model report (AVMR) — Acronym

automatic credit card billing (ACCB) — Acronym

automatic credit card payment (ACCP) — Acronym

automatic payment — Definition

An arrangement that authorizes periodic withdrawals to be made from a chequing or savings account to pay bills, usually regular monthly payments such as for rent or mortgages.

automatic premium loan (APL) — Acronym

An option that prevents a lapse of coverage whereby the insurance company will make a premium payment on your behalf using the cash value of the policy provided there are sufficient funds to draw from.

  ➥  A provision available in some life insurance policies.

Automobile Insurance Rate Board (AIRB) — Company Est.2004, Alberta, Canada

  ➥  Established by the Minister of Treasury Board and Finance Alberta.

automobile liability insurance — Definition

Insurance coverage for damages caused in traffic collisions.

average accounting rate of return (AARR) — Acronym

average annual yield (AAY) — Definition

The average yield per year over the life of the investment, assuming all principal and interest remain on deposit until maturity.

average collection period (ACP) — Acronym

Average numbers of days it takes to acquire receivables.

average daily balance (ADB) — Definition, Important

This is the method by which most credit cards calculate your payment due. An average daily balance is determined by adding each day's balance and then dividing that total by the number of days in a billing cycle. The average daily balance is then multiplied by a card's monthly periodic rate, which is calculated by dividing the annual percentage rate by 12.

average monthly household income (AMHI) — Acronym

average tax rate — Definition

The real rate of taxes you pay after taking into account the various federal tax brackets. There are different tax rates for different levels of income; you pay lower rates on the first part of your income, more on the later earnings. As you pass each income level, the money above that level is taxed at the next higher rate. Therefore, your average tax rate is less than the top rate you pay on a portion of income.

average weighted prime lending rate (AWPLR, AWPR) — Acronym

  ➥  The more common acronym is AWPLR.

average yield to maturity (AYTM) — Acronym

aviation easement — Definition

An agreement that grants the right to fly airplanes over property, even if the practice causes damage, inconvenience, or loss of property value. Such an agreement usually restricts the property owner from building or growing anything over a specified height.