- Established in 1993, Manulife Bank was the first federally regulated, Schedule 1 chartered bank, opened by an insurance company in Canada.
- Manulife Bank has over $22 billion in assets and serves clients across Canada in all provinces and territories.
- Virtual Bank with no branches.
- Internet, telephone, and mobile banking.
- 2nd largest ABM network in Canada
- One of their most popular mortgage products is the Manulife One mortgage. Here is how it works:
- The idea behind Manulife One is simple: have your income and savings work harder to reduce your total debt faster. You have a main account, which is a revolving line of credit, and you also have the ability to have sub-accounts that can be fixed into 5 year fixed terms. The line of credit portion must be kept to a maximum of 65% of the appraised value, and the remainder must be registered as a fixed rate.
- Consolidate your debts; Put your savings to work; Put your income to work:
- When you open a Manulife One account, you can borrow up to 80% of the appraised value of your home. Use this new mortgage to consolidate all of your outstanding debts.
- If you have some savings that are earning little or no interest, apply these funds against your borrowings and reduce your interest costs. You will save more money by paying down the debt than by the interest earned at the bank.
- Put your income to work. By having your regular income deposited to your Manulife One account, you reduce your debt balance the instant the deposit is made, and start reducing your interest costs.
- If you need to access your funds, you can draw on your Manulife One account. The balance of this account is expected to revolve. It is through the long term that you will save on interest costs and potentially be debt free sooner.
- The less interest you pay, the more of your hard earned money stays with you.
- There is a $14 monthly fee which includes everyday banking transactions and sub-accounts. If you are 60+, the monthly fee is $7.00.
- With the line of credit portion of Manulife One, you can pay down your line of credit as much as you want without any penalties or restrictions.
- If you have a fixed rate sub-account, you can pay off up to 20% of the original amount borrowed each year without penalty and also increase your regular payments by up to 25%.
- Mortgage payments for sub-accounts are based on a monthly payment frequency.
- Manulife One is also available for businesses.
- Maximum loan amount is up to 65% of the appraised value, with the Main Account (line of credit portion) to a maximum of 50% of the appraised value. The remainder must be in a fixed rate sub-account.
- Loan limits range from $250,000 minimum to $3 million maximum.
- Eligible properties include: Office building, retail plaza, strip mall, shopping centre, light industrial/warehouse, multi-residential property (single title with five or more units).
- Ineligible properties include: Environmentally sensitive business (ie gas station, auto repair, autobody, drycleaner), single use /hospitality (ie parking lot, self-storage, car dealership, movie theatre, hotel, restaurant, bar, golf course), medium or heavy industry, real estate development, not-forprofit organizations.
- Property must be located within approved locations.
- Manulife One for Investment Properties.
- Up to 80% financing (75% for high rise condominiums).
- Maximum 50% set as Main Account (line of credit), and remainder must be a fixed rate sub-account.
- Minimum loan amount of $100,000 and maximum $750,000.
- Properties must be in an approved location and have year-round occupancy.
- Properties must be residentially zoned and utilized.
- Other Mortgage Features:
- Rate guarantees can range from 60 to 120 days.
- Competitive fixed rates for sub-accounts.
All of the above mortgage products are subject to qualification for income verification, minimum credit score requirements, property location & type. For clients looking to finance with less than 20% down, the lender has a similar product called Manulife Bank Select that is available upon high ratio insurance approval.
A Manulife One mortgage can be a great fit in your family’s financial planning. If you would like more information on this great lender, or the Manulife One mortgage, I am a Certified Manulife Bank mortgage broker, so you can email me with any of your questions: annie@peaktopeakmc.com, or you can visit their web site: www.manulifebank.ca.
This information was current as of March 26, 2017.
The above is for information purposes only and can be changed or withdrawn at any time without notice. All applications are subject to credit approval and the home meeting Manulife Bank’s credit criteria. Manulife One is offered through Manulife Bank of Canada. Manulife, Manulife Bank, are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.