- Tax Shelter
- This is an investment that offers tax savings in some form, such as immediate deductions, credits or income deferral.
- Tenants in Common
A type of account owned by at least two people, where each person is entitled to an indivisible share of the whole of an account's assets. On the death of one account holder, ownership of their share of the account is inheritable by their heir, not by the other surviving account holder(s).
- Testate
A person who dies with a will is said to die "testate".
- Third-Party Determination
The Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) requires financial institutions and others covered by the legislation to identify customers who open accounts or conduct financial transactions. The law also requires that financial institutions determine whether a client is acting on behalf of a third party, and record certain information about such third party.
- Total Debt Service Ratio
A debt service measure that lenders use as a rule of thumb to give a preliminary assessment of whether a potential borrower is financially able to repay a debt. The total debt service ratio is calculated by dividing total annual debt payments (mortgage, property taxes, other debts) by the applicant's annual gross income. It is expressed as a percentage.
- Transfer In Cash
A transfer from one financial institution to another financial institution whereby assets that are not currently held as cash are liquidated in order that a portion or the entire account can be transferred in the form of cash.
- Transfer In Kind
A transfer from one financial institution to another financial institution whereby assets that are not currently held as cash are not liquidated, but transferred as-is, in ther existing state.
- Trustee
- Usually a trust company appointed by the company to protect the security behind the company's bonds and to make certain that all covenants of the trust deed relating to the bonds are honored. Also, a person who holds property and securities in trust for another person.
- Basis Point (bps)
A unit that is equal to 1/100th of 1%, and is commonly used for calculating changes in interest rates, equity indexes and the yield of a fixed-income security. The relationship between percentage changes and basis points can be summarized as follows: 1% change = 100 basis points and 0.01% = 1 basis point.
- Beneficiary
A person to whom an inheritance passes as the result of being named in a will, or a person named to receive income from an insurance policy, endowment, or trust (e.g., registered retirement savings plan).
- Book Cost
“Book cost” is the total amount paid to purchase an investment, including the transactional charges related to the purchase, adjusted for reinvested distributions, returns of capital and corporate reorganizations.
- Book Value
The value of the initial purchase of an investment (e.g., mutual funds) plus reinvested distributions minus any withdrawals or fees.
- Business Day
Any day in which B2B Bank is open for business – ordinarily most calendar days other than Saturdays, Sundays and legal public holidays.
- Business Development (Representative)
The group of individuals at B2B Bank who are responsible for acquiring new – and maintaining existing – relationships with advisors, brokers, dealers and MGAs. For general inquiries and service-related issues, your first point of contact should be client services – for more information,click here.
- Canada Mortgage and Housing Corporation (CMHC)
The Canada Mortgage and Housing Corporation is a Federal Crown corporation that administers the National Housing Act. CMHC's services include providing housing information and assistance to consumers and providing mortgage default insurance for high ratio mortgages.
- Capital Gain or Loss
Capital gain occurs when an asset (capital property) is sold at price greater than its cost. The opposite is true of capital loss, which occurs when an asset (capital property) is sold at a lesser price than its cost.
- Cash Flow
We refer to cash flow as simply the managing of 'funds in and funds out' on a regular occurring basis – for example, managing income against expenses such as mortgage payment, bill payments, loan payments, etc.
- Collateral
Securities or other property pledged by a borrower as guarantee for repayment of a loan.
- Collateral value
This is the collateral value at which your client will be required to pledge additional non-registered eligible collateral or provide cash to pay down the loan.
- Common-law partner
A person who is not your spouse, with whom you are living and have a conjugal relationship, and to whom at least one of the following situations applies. He or she: has been living with you in such a relationship for at least 12 continuous months; is the parent of your child by birth or adoption; or has custody and control of your child (or had custody and control immediately before the child turned 19 years of age) and your child is wholly dependent on that person for support.
- Compound Interest
Interest earned on an investment at periodic intervals and added to the original amount of the investment. Future interest payments are then calculated and paid at the original rate but on the increased total of the investment.
- Cost of Borrowing
The amount it costs to borrow money, in particular the interest on a loan. It may also include certain administrative fees, and charges for services related to the loan.