Just One change could
save you thousands
How you bank is as important as
where you bank
If you're like most Canadians, you manage your finances with multiple accounts and credit lines, often paying more interest on debts than you earn on savings. Manulife One combines all your banking needs into a single account, automatically reducing your debt and saving you interest. Save time and money with Manulife One.
How Manulife One works
Consolidate
your debts
With a Manulife One account, you can borrow up to 80% of your home's appraised value to pay off your mortgage and other loans, reducing your interest costs. For credit limits between 65% and 80%, the excess must go into a term sub-account where the credit limit decreases with each principal payment.
Put your savings
to work
Instead of earning little or no interest on your chequing and savings accounts, with Manulife One you can use that money to reduce your debt. Manulife One applies those balances against your borrowings, instantly reducing your total debt—and saving you much more in interest costs than you’d likely make in interest earnings. And, you can use that money whenever you need it (up to your borrowing limit).
Put your income
to work
By adding your regular income to your Manulife One account, you further reduce your debt the instant the deposit is made. Your income is immediately working for you to help reduce loan interest costs until you need it for your monthly expenses. With even one extra dollar of your income in your account, you reduce your debt faster, so you pay less interest.
Enjoy the freedom
and flexibility
Manulife One saves you time and money with unmatched flexibility. Excess income can reduce your debt or be used for sub-account prepayments. If needed, you can access funds up to your borrowing limit. Once your debt is paid, you'll enjoy one of Canada's highest chequing account interest rates. Manulife One is a lifelong solution, eliminating the need for future loans.
Effective management of savings and debt is key to long-term financial success. By using our innovative banking solutions and working with a professional, you can make your money work harder, enjoy financial flexibility, and become debt-free sooner.
Why switch to Manulife One?
Manulife One has the power to rejuvenate your finances, opening opportunities you never thought possible. Review the different scenarios below and you’ll soon see the real question is, “Why not switch to Manulife One?
Improved cash flow for other aspects of financial plan.
Doug and Iris are a couple in their early 50s. They recently prepared a comprehensive financial plan with their advisor and were shocked to realize their overall insurance premiums would increase by $400 per month. They have 10 years left on their mortgage and are helping support their 24-year-old daughter while she attends graduate school. They don’t feel they can meet their monthly obligations and implement the plan. They meet with a bank representative who reviews their situation and quickly realizes that by consolidating their mortgage, line of credit and car loan, they could be debt-free soon. In fact, even with the higher premiums and after paying a penalty to break their current mortgage, Doug and Iris could still have all their debt paid off in just under seven years.
Flexibility for young families
Shannon and Kyle are married with two young boys. They’re selling their condo and moving into a house valued at $400,000. With the proceeds of the condo sale, Shannon and Kyle need to borrow $280,000 initially. This equals 70 per cent of the value of their home. They also anticipate some fix-it projects once they move in. The maximum credit amount for the revolving portion of the Manulife One account is 65 per cent; therefore, five per cent ($20,000) must go into an amortizing sub-account. This would put Shannon and Kyle at their borrowing limit on the main account, with no flexibility to access money for home improvements. They choose to put 15 per cent of the value of their home into the sub-account instead of the required five per cent. The additional 10 per cent allocated to the sub-account becomes “freed-up” in the main account, but does not increase the overall balance. The amount of their total debt doesn’t change—however, the way the sub-account is set up, Shannon and Kyle now have some financial flexibility.
Rainy day account for more
established clients
Susan has lived in her home for 15 years and has built up 60 per cent equity in her home. While she doesn’t have any immediate borrowing needs, Susan would like to have fast and easy access to money if a need arises without having to negotiate with her bank. With Manulife One the credit limit is set at 65 per cent of the value of her home, so Susan does not need to set up any sub-accounts, plus she could access 25 per cent of her credit limit in the Main Account at any time. By allocating different percentages of her debt to a sub-account(s), Susan could potentially save interest costs. With current historically low rates, she could choose to put a good portion of her debt into a non-readvanceable sub-account and the principal payments to the term sub-account will automatically reduce her credit limit.
Shield yourself against employment uncertainty
Keith is employed in the manufacturing sector and is concerned that he may be let go with little notice because of a slowdown in the economy. Although he has no debt other than his mortgage, with no source of emergency funds, he doesn’t know how he would manage if he were unemployed. He sees an ad for Manulife One and contacts a bank representative to learn more. Because Keith has 50 per cent equity in his home, the bank representative recommends Manulife One. The maximum credit amount for the revolving main account portion of Manulife One account is 65 per cent; therefore, Keith is not required to open any sub-accounts and has some flexibility with his finances because of the amount of equity he has built up. As it turns out, he doesn’t lose his job but his hours are cut, reducing his monthly income. With Manulife One, he has the option to pay less per month on his mortgage until his income gets back to normal—a big comfort at an uncertain time.*
Retire earlier
Michelle is a teacher living in Toronto, but her heart still beats on the west coast. In fact, she’s a homeowner in both locations because, one day, she plans to sell her condo in the city and return to her roots to retire. When she asks her financial advisor if there is any way they could come up with a plan that would allow her to retire in five years, there is only one answer – talk to a bank representative about Manulife One. She opens Manulife One accounts for both of her properties and structures her payments in such a way that will allow her to completely pay down her retirement property in less than five years. Manulife One is allowing her to make her “happily ever after” happen more quickly than she ever thought possible.
More flexible than a reverse mortgage
James and Louise are retired and live on a fixed monthly income that includes a modest pension. They paid off the mortgage on their family home before they retired. They are friends with many of their neighbours, the neighborhood is safe and familiar, and they have no desire to move. However, they are looking for financial options that would allow them to access their equity if and when a need arises. They are excited when a friend suggests Manulife One. Unlike reverse mortgages, Manulife One appeals to them because they don’t need to withdraw a lump sum immediately. Rather, they can make withdrawals when they need to—say to pay for a home repair or help out one of their grown kids. The flexibility of Manulife One appeals to them and even if current interest rates rise, the low, competitive Manulife One rate(s) have been historically lower than line of credit rates.