Banking/Investments 1
Savings you put away for your children's future education.
Registered Education Savings Plan (RESP)
Issued by corporations and governments to raise money; you essentially give them a loan and they pay you back at a specified time with interest payments along the way.
Bonds
A loan specific for a house.
Mortgage
A person or business that lends money in a mortgage agreement.
Mortgagee
The government allows you to save and invest money tax free up to up a certain amount each year.
Tax Free Savings Account (TFSA)
Type of investment that pools money from many investors to buy a diversified portfolio of investment instruments (stocks, bonds, and other securities).
Mutual fund
The initial upfront partial payment when purchasing a house. Must be at least 5% of the purchase price.
Down payment
The total length of your mortgage.
Amortization period
Savings you put away for retirement and can be used to reduce your income tax because gains are taxed upon withdrawal (after retirement when your income is lower).
Registered Retirement Saving Plan (RRSP)
A registered investment account that you convert others into upon retirement.
Registered Retirement Income Fund (RRIF)
Length of a closed interest rate on your mortgage.
Term
The mortgage contract allows for prepayment or payout at any time.
Open mortgage
Type of investment where you buy into a company and get partial ownership.
Stocks
Secured investment where you get back the amount you invested (principal) at the end of the term plus interest; usually offers relatively low rates.
Guaranteed Investment Certificate (GIC)
The size of regular payments fluctuates as the prime interest rate changes.
Variable rate mortgage
The difference between the value of an asset such as a house, and the amount owed on the asset.
Equity
Amount borrowed or invested.
Principal
A rate set by banks that determines the cost of borrowing for customers (for mortgages, etc.)
Prime Rate
Taxes you pay when you buy a house and transfer the name on deed.
Land transfer tax
A legal claim on an asset such as a house; used to recover unpaid debt.
Lien against a property