The is an all-in-one banking solution that combines your mortgage, savings, and income into one easy-to-use chequing account. It 网曝吃瓜 鈥檚 an incredibly unique tool that 网曝吃瓜 鈥檚 been saving Canadians many thousands of dollars in interest costs, allowing them to repay their mortgages sooner all while having the flexibility to cover unexpected costs as they come up.
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To see if it may be a good fit for you, let 网曝吃瓜 鈥檚 take a look at how it works:
That 网曝吃瓜 鈥檚 right! Think of Manulife One as an all-in-one bank account. It combines your mortgage and other debts with your short-term savings and income into one chequing account. You can deposit your pay cheque into it and buy groceries with it just like you would a normal chequing account.
You 网曝吃瓜 鈥檙e also able to do everything you 网曝吃瓜 鈥檇 normally do with a bank account like write cheques, bank online, and withdraw money at ATMs. The only potential drawback, depending on your banking needs, is that there are no in-person branches.
Many Canadians have multiple debts (a mortgage, a car loan, lines of credit, credit cards, etc.) with different interest rates and payment due dates, which can be confusing and overwhelming. Manulife One combines your mortgage with your other high cost debts into one account with one lower interest rate. This can reduce the overall amount of interest you pay (which is called ) and makes it much easier to track what you have and what you owe.
You 网曝吃瓜 鈥檒l get one statement at the end of each month that will clearly state what you owe and when, giving you a big picture look at your finances. It can help you see and understand your household cash flow and in a new, simplified way.
You likely have a variety of chequing and savings accounts, and you 网曝吃瓜 鈥檙e almost certainly paying more interest on your debt than you 网曝吃瓜 鈥檙e earning in those saving accounts. By having your savings (including your emergency fund) sit inside your Manulife One account, you 网曝吃瓜 鈥檙e applying that cash towards your debt to lower the total amount you owe and therefore get charged interest on.
Here 网曝吃瓜 鈥檚 how it works: The interest you 网曝吃瓜 鈥檙e charged is , which means it 网曝吃瓜 鈥檚 calculated daily. Let 网曝吃瓜 鈥檚 say you have $400,000 left on your mortgage and $50,000 in cash between your various savings and chequing accounts. By having all of this combined in your Manulife One account you 网曝吃瓜 鈥檒l only get charged interest on $350,000 of debt instead of $400,000.
You can see how each dollar you deposit automatically lowers your debt, allowing your savings to work harder than they would be just sitting in their own separate accounts. And like a home equity line of credit, it 网曝吃瓜 鈥檚 a revolving loan which means that as you pay off your debt you still have access to that original amount of credit.
When making a big purchase like a home, it 网曝吃瓜 鈥檚 natural to get caught up in asking, 网曝吃瓜 鈥淲hat 网曝吃瓜 鈥檚 the interest rate? 网曝吃瓜 鈥� in hopes of finding the absolute lowest one. However, a low interest rate is only one piece of the puzzle and can often be misleading.
If you 网曝吃瓜 鈥檙e stuck on wanting to find the absolute lowest interest rate, here 网曝吃瓜 鈥檚 a helpful thing to ask yourself: Why do you care about getting the lowest possible interest rate? If it 网曝吃瓜 鈥檚 because you want to pay the least amount of interest, then you should care about interest cost over interest rate. Interest cost is the total dollar amount of interest you 网曝吃瓜 鈥檒l pay over the life of your loan, while the interest rate is the percentage you 网曝吃瓜 鈥檙e charged on the money you borrow.
Your Manulife One interest rate will likely be higher than whatever the lowest rate you 网曝吃瓜 鈥檙e able to find in the mortgage market is, but because of the way it 网曝吃瓜 鈥檚 structured you often end up paying less in interest over time (look at the example above). Every deposit you make automatically pays down your debt, which reduces your interest costs. Overtime, unifying your debts under one rate and using extra cash to pay down your debt can help reduce the amount of interest you pay and allow you to be debt free years sooner.
Also, with a traditional low-rate fixed mortgage you get off to a slow start paying down your debt because your payments are blended (interest plus principal). These mortgages are front-loaded which means that your payments are made up mostly of interest at the beginning. It 网曝吃瓜 鈥檚 not until the latter half of the life of your mortgage that your payments start to be more principal than interest. In this way you can see that payment does not equal paydown, and you should keep this in mind when you 网曝吃瓜 鈥檙e rate hunting.
The Manulife One mortgage gives you a lot of flexibility to manage your cash flow month over month at your discretion. You 网曝吃瓜 鈥檒l be given a minimum payment each month, but there 网曝吃瓜 鈥檚 no limit to the amount you can pay off. If you get a lump sum of cash you can deposit it all to pay down a chunk of your debt without penalty, unlike most conventional mortgages. The ability to pay off your mortgage in lump sums is one of the only tools you can use to pay down your debt sooner and lower your cost of borrowing, so being able to do this is a huge advantage.
On the flip side, if you 网曝吃瓜 鈥檙e going through a tight stretch where you don 网曝吃瓜 鈥檛 have income for a certain period of time, you actually don 网曝吃瓜 鈥檛 need to make a payment until your credit limit is reached. As long as your total outstanding debt (that 网曝吃瓜 鈥檚 your original debt plus any accrued interest) doesn 网曝吃瓜 鈥檛 exceed the total amount of credit you were approved for (your borrowing limit), you don 网曝吃瓜 鈥檛 have to make a payment. Only once your debt exceeds your borrowing limit will a payment be required, and then that payment will be whatever amount is required to bring your balance back below your borrowing limit.
They say that banks tend to hand out umbrellas when the sun is shining, not when it 网曝吃瓜 鈥檚 raining. If you wait until you 网曝吃瓜 鈥檙e at your borrowing limit because you lost your job or can 网曝吃瓜 鈥檛 work due to a health crisis to apply for extra credit, it 网曝吃瓜 鈥檚 going to be much harder to be approved than if you were employed and healthy, right? You 网曝吃瓜 鈥檙e always more likely to get approved for credit when the going is good.
You can look at the Manulife One mortgage as a way to give yourself options before you need them. If you 网曝吃瓜 鈥檙e hit with a job loss, health crisis, or you need to cover a major housing expense like a new roof, you already have access to a line of credit (up to your borrowing limit) and you can 网曝吃瓜 鈥渂e your own banker 网曝吃瓜 鈥� and use that credit to supplement your cash flow at your discretion. It 网曝吃瓜 鈥檚 also a way to supplement your retirement income if you hadn 网曝吃瓜 鈥檛 been adequately saving while you were working.
When used correctly, the Manulife One mortgage can be a very powerful tool. Everyone 网曝吃瓜 鈥檚 cash flow is different so it 网曝吃瓜 鈥檚 important to build a financial plan that looks at all parts of your financial life. If you haven 网曝吃瓜 鈥檛 yet, .
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Sometimes unexcpected expenses can leave you with bad credit, but the good news is even with poor credit you can still qualify for a mortgage.
Sometimes unexcpected expenses can leave you with bad credit, but the good news is even with poor credit you can still qualify for a mortgage.
The long-awaited First-Time Home Buyer Incentive (FTHBI) is now in effect 网曝吃瓜 鈥� but how effective will it really be in helping Canadians achieve homeownership?