Are You Looking for a Flexible Mortgage Option?
What is Manulife One?
Manulife One is an innovative financial account that combines your mortgage, line of credit, savings, and income into one single account. Every time you deposit money into this account—your paycheck, savings, or other income—it immediately reduces your mortgage balance. This means you pay less interest, which can add up to significant savings over time.
How Does Manulife One Work?
Here’s how it breaks down:
Integrated Mortgage Solution: Manulife One blends your mortgage, line of credit, savings, and income into a single account. Every dollar you deposit works to reduce your line of credit debt, lowering the interest that builds up each day.
Flexible HELOC Structure: Unlike traditional mortgages, Manulife One has a Main Account that works like an overdraft on a chequing account. This gives you a lot of flexibility in handling your payments and how long you take to pay off your mortgage.
Daily Balance Offset: Your account balance is updated daily based on the money you deposit. This daily offset helps reduce the interest you owe, potentially saving you a significant amount in the long run.
Sub-Account Customization: You can create up to five Fixed Rate Sub-Accounts, which are like mini-mortgages within your main account. These can have fixed rates for one to five years, allowing you to manage different financial goals easily.
Interest-Only Payments: You’re only required to make interest payments on your Main Account each month. This means you can choose to pay more towards your mortgage principal when you have extra cash or pay just the interest if money is tight.
Accelerated Mortgage Repayment: If used wisely, Manulife One's flexible structure can help you pay off your mortgage faster.
Right of Survivorship: If one of the mortgage holders passes away, the other doesn’t need to reapply for the mortgage. Manulife One is currently the only mortgage product that offers this important feature.
Pros of Manulife One:
Flexible Payments: You control how much you pay towards your monthly mortgage. This is great if your income varies or you want to pay off your mortgage faster when you have extra money.
Access to Equity: You can easily access the equity in your home for emergencies or big purchases without going through a long process.
Simplified Finances: Manulife One simplifies money management by combining your mortgage, savings, and daily banking into one account.
Lower Penalties: If you decide to pay off parts of your mortgage early, Manulife One often has lower penalties than other mortgages.
Cons of Manulife One:
Needs Discipline: This account's flexibility means you need to be careful. If you only make interest payments, you might not pay down your mortgage as quickly as you’d like.
Monthly Fee: There’s a small monthly fee for using Manulife One, similar to what you’d pay for a regular chequing account. However, the potential savings on interest can make this fee worthwhile.
May Not Always Be the Cheapest: On the surface, Manulife One might seem more expensive than some traditional mortgages. However, when you consider the flexibility and potential savings, it can be a valuable choice for the right person.
Is Manulife One Right for You?
Manulife One can be a powerful tool for those who like managing all their finances in one place and having the flexibility to decide how much they pay each month. However, if you prefer a more predictable, structured approach with fixed payments, a traditional mortgage might be a better fit.
Let’s Explore Together
If you’re curious whether Manulife One is the right choice for your financial situation, I’m here to help. We can look at the numbers together and see if this product could help you pay off your mortgage faster or save money in the long run.
Feel free to reach out anytime to schedule a consultation. My priority is helping you make the best financial decisions, whether by choosing Manulife One or finding another mortgage product that better suits your needs.