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GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
2% - Infrequently

Interest


Synonyms:charging interest, point
Acronyms &
abbreviations:
IN, int
Notes:Bank account transaction code.
Filed Under: abbreviation, bank statements, financial-banking, investments, mortgages
Tags: banking, classifieds, property listing
 
Broadly associated with: [BMO Financial Group]
Narrowly associated with: [BMO Bank of Montreal]

Definition of interest (IN, int)

interest (IN, int)
1. Money that is paid by a borrower to a lender for the use of borrowed funds. Interest is usually expressed as an annual percentage rate.
2. The cost for obtaining, or cost received for providing, money or goods in a credit transaction, calculated as a fraction or percentage of the amount or value that was borrowed, or lent, respectively.

Related Terms and Acronyms:

  • annual percentage rate (APR)   A yearly rate of interest that includes fees and costs paid to acquire the loan. Lenders are required by law to disclose the APR. The rate is calculated in a standard way, taking the average compound interest rate over the term of the loan, so borrowers can compare loans. In mortgages, it is the interest rate of a mortgage when taking into account the interest, mortgage insurance, and certain closing costs including points paid at closing. There is no APR in an automobile lease; instead, the cost of money is expressed as the money factor.
      ➥  A number used to compare costs associated with mortgage loans and other forms of financing.
  • guaranteed investment certificate (GIC)   An investment that pays a set rate of interest over a fixed period of time.
  • interest rate (IR)   The rate a lender charges an individual to borrow money.
  • mortgage (mtg)   A mortgage is a contract stipulating a specific real property, typically a residence or building, as collateral for a loan. The mortgage incurs a rate of interest that varies according to term and other features.
  • mortgage calculator   A program that calculates the costs involved in a mortgage or determines what kind of mortgage a person can qualify for.
      ➥  CanEquity's mortgage calculator has been rated number one by the Globe and Mail.
  • mortgage rate   The interest rate on a mortgage loan.
      ➥  You can compare mortgage rates using this website by clicking 'Rates' above.
  • prime lending rate (PLR)   The rate of interest charged on loans by chartered banks to their most creditworthy customers.
      ➥  Bank of Canada's prime (best) lending rate.
  • principal, interest and taxes (PIT)   Principal, interest and taxes. The components of a monthly mortgage payment.
  • simple interest (SI)   Interest computed only on the principal balance, without compounding.
  • step-rate mortgage   A fixed-rate home loan on which payments are lower at the beginning, typically for two years, and which then rise.

More Related Terms and Acronyms


Broad and Narrow Associations

[BMO Bank of Montreal]
  • Bank of Montreal (BMO) — Company Est.1817, Canada-wide, Very Important
      ➥  Canada's very first bank. A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages, and reverse mortgages.
  • cheque (CK)Definition   A written order for payment of a certain amount of money.
      ➥  Bank account transaction code.
  • certified cheque (CC)Definition   A cheque that a bank guarantees will clear.
  • foreign exchange (F/X, FE, FOREX, FX)Definition   Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).
  • other automated banking machine (OM) — Acronym, Low Relevance
[BMO Financial Group]
  • Bank of Montreal (BMO) — Company Est.1817, Canada-wide, Very Important
      ➥  Canada's very first bank. A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages, and reverse mortgages.
  • cheque (CK)Definition   A written order for payment of a certain amount of money.
      ➥  Bank account transaction code.
  • foreign exchange (F/X, FE, FOREX, FX)Definition   Various instruments used to settle payments for transactions between individuals or organizations using different currencies (e.g., notes, cheques, etc.).
  • certified cheque (CC)Definition   A cheque that a bank guarantees will clear.
  • Bank of Montreal Mortgage Corporation (BMMC) — Company, Canada-wide
      ➥  A Canadian NHA approved mortgage lender that offers all lending types, including both residential single family and multi-unit mortgages.

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