Amortization Number of years over which the principal and interest of a loan are paid. The maximum amortization period for a mortgage loan is 25 years.
Assets All of the tangible and intangible property belonging to a company or to a person: money, equipment, securities, buildings, etc.
D
Decile In the Morningstar ratings, the term decile refers to the positioning of a mutual fund in relation to other funds in its peer group. For...
F
Family trust Financial tool that enables members of a family to reduce their taxes while providing for the financial future of their descendants or heirs who have...
G
Group RRSP Plan in which participants invest in order to receive a retirement income. A customized Group RRSP meets the requirements of the Voluntary Retirement Savings Plans...
H
Home Buyers' Plan (HBP) Program which under certain conditions enables you to borrow funds from your Registered Retirement Savings Plan (RRSP) to buy or build a home. The maximum...
I
Incapacity Inability of a person to administer his or her property for the following reasons: degenerative mental illness stroke intellectual disability head injury age-related impairment
Income splitting Method of transferring, in the form of a gift or a loan, part of the income of a person in a higher tax bracket to...
Individual Pension Plan (IPP) Registered defined benefit pension plan that enables a company to save for the retirement of a key employee or a major shareholder.
Investment vehicle Generic term for a variety of financial products in which one can invest and grow one’s money: RRSP, mutual funds, etc.
J
Joint-stock corporation or company "Artificial person" that can own property and enter into agreements in its own name. Legal entity belonging to the shareholders, who are not personally responsible...
L
Lease Financing method that enables you to buy property (movable or immovable) at the end of a lease contract. No down payment is required. Rent paid...
Life income fund (LIF) Registered account to which sums accumulated in a LIRA can be transferred.
Lifelong Learning Plan (LLP) Plan that enables you to withdraw funds from your RRSP to finance full-time training or education for you or your spouse. The withdrawal limit is...
Locked-in Retirement Account (LIRA) Account to which “locked-in” sums from an employer pension plan, certain annuity contracts, or another LIRA can be transferred.
M
Median The median value of a category is the mid-point of that value's distribution for all funds in a sample. For instance, one half of the...
Morningstar rating Morningstar is a leading provider of independent investment research in North America, Europe, Australia, and Asia. Morningstar provides data and research insights on a wide...
Mortgage loan Loan for the purchase of a home or other property which is paid back over many years. The property serves as security for the repayment...
Mortgage term Period during which the terms and conditions of your loan remain in force. For example: a mortgage amortized over 25 years with a 5-year term...
P
Portfolio Term that designates all the financial assets, securities or investments held by an institution or an individual.
Q
Quartile The quartiles divide the data into four equal regions. Expressed in terms of rank (1, 2, 3 or 4), the quartile measure shows how well...
Québec enterprise number (NEQ) Numerical identifier assigned to a business when it registers in the enterprise register.
R
Recession Temporary phase of an economic cycle defined by a decrease in economic activity. Practically speaking, the term recession can be used when real gross domestic...
Registered Education Savings Plan (RESP) Allows savings for education to grow tax-free and gives entitlement to government grants. Plan funds are used to pay for the post-secondary education of your...
Registered plans Savings plans or registered investments designed to help individuals save primarily for retirement or to obtain tax deferrals, depending on the product chosen. General features:...
Registered Retirement Income Fund (RRIF) Registered account to which sums accumulated in an RRSP can be transferred. Income earned in an RRIF is tax-exempt. Amounts paid out of an RRIF...
Registered Retirement Savings Plan (RRSP) Plan in which participants invest in order to receive a retirement income. Contributions are tax deductible. Capital gains and income earned in the plan are...
Risk tolerance An investor’s capacity to accept a substantial decrease or loss in value of the investments in their [itg-glossary glossary-id="5340"]portfolio[/itg-glossary]. The risk level is often proportional...
S
S&P/TSX Index The S&P/TSX is a Canadian benchmark index which represents about 70% of the total market capitalization of the Toronto Stock Exchange (TSX) and which includes...
Share Ownership security or share of the capital of a company held by a shareholder in the business.
Supplemental Pension Plan (SPP) The two main types of supplementary pension plans to which employers and employees can contribute are: Defined benefit plans The amount of benefits is fixed...
T
Tax Free Savings Account (TFSA) Savings account that enables individuals age 18 or over to earn investment income tax-free. The annual contribution limit may vary. Sums withdrawn from a TFSA...
Transfer duties Registration duties paid to the municipality when buying a property. Also called "welcome tax," these duties are payable within 30 days following receipt of the...
U
Unit value Indicator of the market value of a single unit, security, bond or share held in an investment fund.
V
Volatility Term designating the variation in the price of a security over a given period.
W
Wealth management Service that takes charge of managing your investments and covering the seven areas of financial planning: taxation, legal aspects, investments, retirement, finances, insurance, estate.
