Canadian Immigration & Banking Glossary

Amortization

Amortization is the repayment of a loan (or other liability) in gradual installments. One example is repaying a mortgage, in regular payments, over a specified period of time. These payments generally include both principal and interest.

Accompanying Dependant

Spouse or dependent child of the principal applicant who wishes to immigrate to Canada.

Account

A fund that a customer has entrusted to a bank and from which the customer can make withdrawals.

Automated Teller Machine (ATM)

Self-service machine at a bank or other location that enables customers to perform basic banking activities. You need an ATM card or debit card and a PIN (Personal Identification Number). Earlier, known as an Automated Banking Machine (ABM).

Bounced Cheque

Cheque that a bank returns to the issuer due to insufficient funds in the issuer’s account.

Canadian Citizen

A person born in Canada, or who has applied for and acquired citizenship through Citizenship and Immigration Canada (CIC).

Consulate

Offices, located in cities excluding capitals, which offer a complete range of consular services, while all are equipped to handle permanent visa requests.For example: The Canadian Consulate in Chongqing, China.

Canadian Society of Immigration Consultants (CSIC)

Paid immigration representatives who are citizens or permanent residents of Canada, have formed this association. The Immigration Office releases information only to those paid immigration representatives who are members in good standing with the CSIC, or those lawyers in good standing with a law society in Canada.

Cheque

A written order directing a bank to pay money.

Chequing Account

An account which allows the holder to write cheques against deposited funds, or a loan linked to the account, such as a line of credit.

Citizenship and Immigration Canada (CIC)

was created in 1994 to link immigration services with citizenship registration. The CIC admits, helps and manages immigrants, foreign students, visitors and temporary workers who help Canada’s social and economic growth.

Common-Law Partner

A person who is currently living with the principal applicant in a conjugal relationship since at least one year. The term applies to relationships of both, opposite sex as well as the same sex.

Conjugal Partner

Person outside Canada who is currently in a conjugal relationship with the principal applicant since at least one year. The term applies to relationships of both, opposite sex as well as the same sex.

Correspondent Bank

Bank that performs services for another bank which has no branch or physical presence in the relevant centre or jurisdiction. Functions include cheque clearing, cash management, transfer of funds and so on.

Credit

Money loaned by a financial institution to an individual or organization. Credit can come in many forms including loans, mortgages, credit cards, etc.

Credit Card

A card that may be used repeatedly to borrow money or buy products and services on credit. Issued by financial institutions, retail stores, and other businesses.

Credit History

Records of a borrower’s debt payment that indicate the creditworthiness of the borrower. The credit history helps lenders in determining the borrower’s ability to repay debts in a timely manner.

Deposit

Money or other financial instruments paid into an account at a financial institution.

Electronic Funds Transfer (EFT)

Transfer of funds by electronic means rather than paper based methods. These include using computer systems, ATM, telephone, wire transfers, etc. The funds are transferred faster and are more secure. Interest Rate Price lenders charge the borrowers for use of their money for a specified period of time. The rate charged is usually expressed as a percentage of the total amount borrowed.

Family Class

Class of newcomers to Canada who are close relatives of their Canadian sponsor.

Foreign National

Any person who is not a Canadian citizen or a permanent resident of Canada.

Guaranteed Investment Certificate (GIC)

A deposit investment sold by financial institutions where the principal is guaranteed. The certificate generally gets a higher rate of return than other vehicles, but must be held until maturity. These investments are often bought for inclusion in retirement plans because they provide a low-risk fixed rate of return. See also “Term Deposit”.

Interest Rate

In terms of credit, interest rate refers to the price lenders charge a borrower for use of their money for a specified period of time. The rate charged is usually expressed as a percentage of the total amount borrowed.

In terms of deposits, interest rate refers to the amount of money a deposit will earn over the length of time it is deposited. The rate earned is usually expressed as a percentage of the total amount deposited.

Labour Market Opinion

When hiring a foreign worker, the employer is usually required to apply to Service Canada to obtain a positive labour market opinion (LMO). Service Canada confirms that the employment offer to the foreign worker will not have a negative impact on the Canadian labour market.

Line of Credit (LOC)

An agreement negotiated between a borrower and a lender establishing the maximum amount of money against which a borrower may draw. The agreement also sets out other conditions, for example, how and when the money is to be repaid.

Liquid Assets

Cash, demand deposits with a bank or financial institution, short-term deposits and readily marketable investments including publicly traded stocks or bonds.

Loan

When a lender gives money to a borrower, and the borrower agrees to repay the borrowed money (generally with interest), at a predetermined date in the future.

Minimum Opening Deposit

The minimum amount of money needed to open and maintain an account. Accounts that fall below the minimum balance may be subject to service charges.

Mortgage

A loan secured by specified real estate property that the borrower is obliged to pay back with a predetermined series of payments. The mortgage is often for payment of the purchase of the property being used as collateral.

Mutual Fund

Mutual funds are pools of money operated by an investment company which raises money from shareholders and invests in a group of assets. The share price of a mutual fund will fluctuate, depending upon the performance of the securities held by the fund.

National Occupational Classification (NOC)

The NOC is a comprehensive authoritative resource which lists occupations in Canada, the detailed work profiles, skill and training requirements. NOC website

Non-accompanying Dependant

A spouse or dependent child of the principal applicant who does not intend to immigrate to Canada.

Non-resident Account

An account owned by a person from outside the country in which the bank is chartered.

Online/Personal Internet Banking (PIB)

A convenient and secure way of performing banking operations using a financial institution’s secure website over the internet. This allows customers to do their banking outside bank hours and from anywhere on the Internet.

Personal Identification Number (PIN)

A numeric identification code, which the user creates to access their account. A PIN is required for use at ATM machines, to verify the identity of the cardholder and to authorize the account transactions.

Permanent Resident

A legal immigrant or refugee to Canada residing in Canada on permanent basis but not yet a Canadian citizen.

Permanent Resident Card

A secure, machine-readable card that is a proof of permanent resident status in Canada. It is valid for a period of 5 years.

Permanent Resident Visa

Visa issued by the Citizenship and Immigration Canada (CIC) overseas visa office, which enables a foreign national to reside in Canada permanently.

Personal Identification Number (PIN)

A numeric identification code of usually four digits, which users create to access their account. PIN is required for use at ATM machines to verify the identity of the cardholder and to authorize the account transactions.

Refugee Claimant

A person who applies for refugee protection status after entering Canada.

Registered Retirement Savings Plan (RRSP)

RRSPs are savings plans for individuals, which provide retirement income at retirement based on accumulated contributions and return on investment in the plan. Contributions to an RRSP are tax deductible, up to maximum personal limits, the investment income in it is tax-deferred and payments from it are taxable.

Registered Education Savings Plan (RESP)

A savings plan that is sponsored by the Canadian government and encourages investing in future post-secondary education for a child.

Savings Account

A deposit account which bears interest without a stated maturity. Withdrawals and deposits can be made at any time.

Service Charge

A fee established by the financial institutions for maintaining a particular service - like annual charges for a checking account, late payments of loans, returned cheque, and so on.

Stop Payment

An order by the writer of a cheque to the bank not to honour the payment. The stop payment order directing has to be given before the cheque has been cashed and can be done by telephone or in writing.

Study Permit

This document permits a foreign national to pursue studies in Canada. It issued by a Citizenship and Immigration Canada (CIC) visa or immigration officer.

Tax-Free Savings Account

A type of account, introduced by the Canadian Government in 2008, and available beginning January 1, 2009, where an individual can save or invest up to a maximum of $5000 per person, per year without paying tax on the interest the money in the account earns. Withdrawals from this type of account are also tax-free.

Telephone Banking

Service provided by the financial institution, which allows its clients to perform transactions over the telephone. Most telephone banking requires authentication and instructions are carried out by a physical person or via an interactive voice response (IVR) system.

Temporary Resident

A foreign national who legally enters and remains in Canada for a temporary period, for tourism, business, study, work or similar purpose.

Temporary Work Permit Canada

A document allowing a foreign national to work in Canada on a temporary basis, issued by a CIC visa or immigration officer.

Term Deposit

Secure investments generally offering a higher rate of interest than a simple savings account, available in a number of currencies, a variety of term lengths, and several redemption options.

Visitor Visa

A document allowing a foreign national to visit Canada on a temporary basis, issued by a CIC visa or immigration officer to foreign nationals from countries which require a visa to visit Canada.

Telegraphic Wire Transfer

An electronic transfer of funds from one entity to another across a network administered by hundreds of banks around the world.

Work Permit Canada

A document allowing a foreign national to work in Canada. Issued by a CIC visa or immigration officer.