| Grace Period |
The period allowed to avoid any finance charges by paying off the balance in full before the due date. |
| Gross Monthly Income |
The amount of income you earn before taxes are deducted. |
| Guaranteed Investment Certificate (GIC) |
An interest-bearing minimum deposit with a term usually from one to five years. Interest earned on a GIC is taxed. |
| Guarantor |
A person who guarantees repayment of a loan, assuming the financial responsbility of a debt if necessary. |
| Hedging |
An investment strategy used to minimize potential risks which combines different types of securities in an investment portfolio. |
| High Lending Charge |
A fee or one-off insurance premium imposed on borrowers when the amount the borrower wishes to finance is more than 90% of the property's value. |
| Holding Company |
A corporation whose only business is to own shares of other corporations. While it usually oversees the management of the other corporations, it's not actively involved in daily operations. |
| Home Equity Loan/Equity Loan/Second Mortgage |
A loan based on the difference of the amount of equity paid on a home and the home's current market value. This can be a risky loan option, as if you default on your loan, your home will likely be sold to pay off the debt. |
| Identity Fraud |
A fast-growing crime that occurs when someone uses your personal information to commit a crime or steal in your name. |
| Immediate Annuity |
An immediate annuity is designed to provide income immediately in retirement. You pay an annuity provider a lump sum in exchange for a guaranteed income stream. |
| Impaired Credit |
A term used to describe someone or an organization with a history of poor credit transactions, including late payments and/or loan defaults. |
| In arrears |
Debts not paid by the due date because someone or an organization has fallen behind in payments. |
| Income Multiple Mortgage |
When a lender uses a multiple of your annual income as an indicator of how much it's willing to lend you. |
| Income Tax |
Income tax is the tax paid on the financial income of people, corporations, or other legal entities |
| Indemnity |
An indemnity is an amount paid by A to B by way of compensation/reparation for a particular loss suffered by B. |
| Inflation |
A regular increase in the price level of goods and services. |
| Installment Loan |
A credit account in which the amount of the payment and the number of payments are predetermined or fixed. |
| Insurable Interest |
A potential beneficiary with a financial interest in the life of another person and who would suffer loss upon that person's injury, disability, or death. |
| Interest |
The cost of borrowing or lending money, usually a percentage of the amount borrowed or loaned. |
| Interest Rate |
The amount or percentage charged by a lender for borrowing money. |
| Interest-Only Mortgages |
A kind of mortgage in which its monthly payment does not include the repayment of the principal amount borrowed for a certain period of time. |
| Intermediary |
An independent third party who brings parties together (borrowers and lenders in particular) and assists in negotiating terms. |
| Investment Income |
Income derived from investments, including stocks, bonds, mutual funds, or other securities that produce income. |
| Investment Warrants |
High-risk, high-reward, transferable, quoted certificates. They tend to be more appealing for medium-term to long-term investment plans, speculators, and hedgers. |
| Irrevocable Trust |
A trust that cannot be modified or closed without the permission of the beneficiary. |
|
|
