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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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50% - Moderately

Goods and Services Tax


Website:http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/menu-eng.html
Synonyms:sales tax, taxe sur les produits et services
Acronyms &
abbreviations:
GS, GST
Relevant locations:Canada
Notes:Bank account transaction code.
Filed Under: bank statements, financial-banking, government, investments, mortgages, real-estate, taxation
Tags: banking, taxes
 
Broadly associated with: [Government of Canada]
Narrowly associated with: [Canada Revenue Agency]

Definition of goods and services tax (GS, GST)

goods and services tax (GS, GST)
1. A value added consumption tax introduced by the Mulroney government in order to replace the Manufacturers' Sales Tax (MST). When initially introduced in 1991, the Goods and Services Tax (GST) was imposed at a rate of 7%; as of 2012, the GST rate is charged at 5%. The GST applies to most consumer purchases with notable exceptions including prescription drugs, and basic groceries. The Goods and Services Tax is applicable in all Canadian provinces, including provinces that use a Harmonized Sales Tax (HST) where the GST is merged with a Provincial Sales Tax (PST).

Related Terms and Acronyms:

  • direct tax   A tax that is paid straight to the government.
  • harmonized sales tax (HST)   A sales tax used in some provinces to merge the GST and PST.
      ➥  Canadian consumption tax.
  • indirect tax   A tax that is collected by a third party before being transferred to the government.
  • provincial sales tax (PST)   A sales tax collected by some Canadian provinces.
  • sales tax   Federal and / or provincial taxes that are applied to purchases.
  • tax (TX)   A levy paid by an individual or entity that is collected by a government.
      ➥  Bank account transaction code.

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.
[Canada Revenue Agency]
  • 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.
  • 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.
  • Home Renovation Tax Credit (HRTC) — Canada, Important
  • Canada Revenue Agency (CRA) — Company, Canada, Important
  • registered retirement income fund (RRIF) — Canada, Important

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Below is a listing of our most popular mortgage product inquiries made using our online mortgage application for clients in Dollard-Des-Ormeaux.

Mortgage Product Type Inquiries
Mortgage Renewal32.31%
First-time Home Buyer20.00%
Mortgage Pre-approval12.31%
Refinance/Consolidate Debt10.77%
No Money Down discontinued9.23%
New Purchase6.15%
Pre-approval4.62%
Other4.62%