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Canadian Financial, Real Estate and Mortgage Glossary
How often this word is used
50% - Moderately
50% - Moderately
is a registered company.
|Synonyms:||Department of Finance Canada, Ministère des Finances Canada|
|Filed Under:||companies-associations, financial-banking, mortgages|
|Tags:||banking, finance, mortgage|
|Broadly associated with:||[Government of Canada]|
|Narrowly associated with:||[Department of Finance Canada]|
Definition of Finance Canada
- Finance Canada
- 1. A Federal Department that is responsible for Canada's economic performance and the regulation of financial institutions.
Related Terms and Acronyms:
Bank of Canada (BC, BOC)
Canada's central bank.
➥ Canada's central bank.
Canada Deposit Insurance Corporation (CDIC)
A crown corporation that provides deposit insurance against the loss of deposits made with member financial institutions.
➥ Government of Canada federal crown corporation.
- Canadian Payments Association (CPA) This association, which is composed of several financial institutions and the Bank of Canada, operates a national clearing system for financial institution payments.
- central bank An institution that manages a nation's monetary policy.
- deposit insurance The Canada Deposit Insurance Corporation insures depositors' funds to a maximum of $60,000 per depositor, per institution, with some exceptions, in the event of the failure of a federal financial institution. Deposits in some provincial financial institutions are also covered.
- specialized financing corporation 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.
Broad and Narrow Associations
[Government of Canada]
Registered Retirement Savings Plan (RRSP) — Canada, Very Important
A savings plan introduced by the federal government to encourage Canadians to save money for retirement. The investment and the interest earned on it is sheltered: it will not be taxed as long as it is left in the plan.
➥ Tax deferred investment contribution used to reduce income tax.
Canada Mortgage Bonds (CMB) — Est. 2001, Canada, Very Important
A fully guaranteed fixed interest rate income investment backed by CMHC (a crown corporation of the Government of Canada).
➥ Issued by the Canada Housing Trust (CHT).
Registered Education Savings Plan (RESP) — Canada, Very Important
An investment vehicle used for a child's post-secondary education.
➥ RESPs are offered by most financial institutions in Canada.
Canada Mortgage and Housing Corporation (CMHC) — Company Est.1946, Canada-wide, Very Important
The Canada Mortgage and Housing Corporation: this is a Federally run institution that provides banks and lenders with mortgage insurance. Not to be confused with life or property insurance. In the event of default or foreclosure CMHC assumes responsibility of the property and reimburses the bank/lender the entire mortgage amount. This insurance is required generally when you have less than 25% equity or down payment. This insurance is paid by the property owner in advance but usually added to the mortgage amount. See also "G.E. Capital."
➥ Insures Canadian mortgage lenders.
Home Buyers' Plan (HBP) — Canada, Very Important
A way for a homebuyer to use part of his or her RRSP as a down payment on a mortgage.
➥ Government assistance for first-time homebuyers.
[Department of Finance Canada]
- territorial formula financing (TFF) — Canada, Low Relevance An annual unconditional transfer of money from the Government of Canada to the three territorial governments to enable them to provide a range of public services to their residents similar to those offered by provincial governments.
- Ontario Superintendent of Financial Institutions (OSFI) — Ottawa, Ontario, Canada, Low Relevance
- official international reserves (OIR) — Canada, Low Relevance
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