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Mortgage and Real Estate Glossary

Alberta Equity's glossary contains hundreds of terms. With this tool, you can click or search through the largest real estate and mortgage glossary in Canada!

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Illegal View (Quebec)
The existence of any exterior openings in a building which creates an illegal view of adjoining lands.
Goods and services produced in other countries and sold in Canada.
Income Approach (To Value)
One of the steps in the valuation process of an income property. The estimate of value is reached by estimating the annual income less an allowance for vacancies and bad debts and subtracting annual operating expenses, real estate taxes and insurance premiums to obtain the net operating income. This is then converted by capitalization into a capital value.
Income Property
Real estate developed or improved to produce income. Also referred to as "non-owner occupied property" or "rental property."
Income Statement
Also known as the profit & loss statement or P&L, enables you to calculate your company's pre-tax profits by subtracting total expenses from total revenues.
Income Tax
The main source of revenue for the federal government and many Provinces. The tax is based on your earned and unearned income. The amount or percentage taxed is based on the amount of income, using the governments graduated tax scale.
A financial strategy for tax purposes. Splitting income refers to the process of shifting income from the hands of one family member to another, who is in a lower tax bracket and will therefore pay tax at a lower rate. This helps reduce your family's overall tax burden.
That which cannot be forfeited or done away with. Indemnity Protection or exemption from loss or damage.
Independent Bank
A bank that is locally owned and operated, and not associated with a bank holding company. Also referred to as a community bank.
A table of yields or interest rates being paid on debt (such as Treasury notes or bank deposits) that is used to determine interest-rate changes.
A rise in the average level of prices in the economy.
Informal Trust
Also known as in-trust account or "bare" trust, this is an investment account registered in an adult's name in trust for a child. The account is used to save/invest funds for a child, and the funds must be reserved for and used by the beneficiary child.
Basic installations that a community needs, such as schools, roads, water and electrical lines, power plants and communications systems.
Initial Interest Rate
The introductory interest rate on an adjustable-rate mortgage (ARM), which usually changes at a predetermined time.
An order of a court of equity prohibiting an act or compelling an act to be done.
Inspection Report
The documentation of a thorough examination of a house's visible structural parts and systems, conducted before purchase.
The regular periodic payment that a borrower agrees to make the lender.
Institute of Canadian Bankers (ICB)
Educational institute that provides career-oriented education and training programs to financial-services professionals.
Insufficient Funds (NSF)
When funds are not enough to satisfy the payment of a cheque or draft made on that account; also known as non-sufficient funds (NSF).
Insurable Title
Title that a title insurance company is willing to insure.
Insurable Value
The term is used conventionally to designate the amount of insurance which may be carried on destructible portions of a property to indemnify the owner in the event of loss.
Intangible Asset
Non-physical resources or rights to other assets. Patents, goodwill, permits and computer programs are examples of intangible assets.
Intangible Property
Property that does not have value itself, but represents something else. Stocks, bonds and franchises are examples of intangible property. Business furniture and equipment are examples of tangible personal property.
Canada's largest shared network of ATMs. It allows cardholders to access their accounts from any ATM on the network regardless of which financial institution owns the machine.
Interac Direct Payment
A method of paying for goods and services electronically with the funds taken immediately and directly from your bank account and transferred directly into the merchant's account. You use your banking card to do this.
Money paid for the use of money borrowed funds, usually expressed as an annual percentage.
Interest Adjustment Date
The date one month prior to commencement of amortization - when accrued interest computed on the monies advanced becomes due.
Interest Factor
The decimal equivalent for an interest rate on a unit amount for a period of time. Computed by interest rate divided by number of days in basic year times the number of days accrued.
Interest Rate Cap
A limit to the interest rate increases and decreases on an adjustable rate loan; either from one adjustment period to the next or over the life of the loan.
Interim Financing
The availability of funds on a day to day basis to assist a developer in financing the construction of project between advances made by the lender of the construction loan.
Internal Rate of Return
That rate at which the present worth of all present and future investment costs equals the present worth of all present and future investment benefits.
International Banking
The area of banking business that includes the operation of bank branches and subsidiaries located outside Canada, the supervision of correspondent banking relationships, foreign exchange trading and trade finance.
International Chamber of Commerce (ICC)
A world business organization that brings business people and experts together to formulate policies in such areas as banking, taxation and the environment.
International Organization for Standardization (ISO)
An international organization created to promote standardization around the world.
Stock on hand in the form of goods ready for sale. Also includes raw material in the process of being manufactured or completed for sale.
Something you put your money into in order to make money.
Investment Banking
Bank operations that manage a bank's funding position, as well as its holdings of Treasury bills, bonds and preferred and common stock.
Investment Income
This is income earned on investments you make. Investment income includes interest, dividends and capital gains.