About Manulife One
Most Canadians manage their finances by doing two things:
- Depositing their income and other short-term assets into chequing and savings accounts.
- Borrowing when they need to, through mortgages, lines of credit, personal loans and credit cards.
Sounds simple enough. Unfortunately, they usually receive low or no interest on the money they deposit, while they pay high interest on the money they borrow.
Wouldn’t it make more sense if the deposits and borrowings were combined? Why not have every dollar you earn paying down your debts until you need to use that money?
Manulife One does just that – and more! It brings your mortgage, savings and income together into one multi-purpose “borrowing and chequing” account.
Now, your income could instantly reduce what you have borrowed. As you pay bills and other expenses throughout the month, the amount you owe will slowly go back up, but you’ll still be much further ahead. With Manulife One, every day that even a dollar of your income stays in your account, you have less debt, so you pay less interest.
The idea behind Manulife One is simple: having your income and savings work harder to reduce your total debt faster.
How Manulife One works
The concept of having an all-in-one account makes perfect sense: bring all your banking together to simplify your finances so your income and savings can work harder to reduce debt faster.
Consolidate your debts
When you open a Manulife One account, we could lend you up to 80%* of the appraised value of your home. Use this money to pay off the balance of your existing mortgage, personal lines of credit and any other outstanding debts you might have and lower your interest costs at the same time.
Put your savings to work
If you’re tired of earning little or no interest on your chequing account, savings balances and short-term investments1, Manulife One can help put that money to work for you. It applies those balances against your borrowings, instantly reducing your total debt… and saving you much more in interest costs than you'd likely ever 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.
Manulife One could save you thousands in interest costs and help you become debt-free years sooner compared to your old way of banking.
*Effective November 15, 2012, if you set up a NEW Manulife One account and request a credit limit between 65% and 80% of the value of your home, the amount above 65% must be allocated to a term sub-account in which the credit limit of your overall account decreases by the amount of the principal payment.
If you opened a Manulife One account before November 15, 2012, you may require this type of sub-account if you request and are approved for a credit limit increase, move to a new home or move from second position to first position on your account.
1 Borrowing to invest may not be appropriate for everyone. You should be fully aware of the risks and benefits associated with leveraged borrowing since losses as well as gains may be magnified. Preferred candidates are those willing to invest for the long term and not averse to increased risk. You should be aware that this strategy may have a higher risk as your home is offered as security for the loan and you will be required to make payments regardless of the performance of your investment. The value of your investment will vary and is not guaranteed, however you must meet your loan and income tax obligations. The dealer and advisor are responsible for determining the appropriateness of investments for their clients and informing them of the risks associated with borrowing to invest.
Tax-deductibility of loan interest depends on a number of factors, with the Income Tax Act providing the framework for determining tax-deductibility. Clients should consult their own tax and legal advisors with respect to their particular circumstance.