Types of Manulife Bank mortgages
Manulife Bank One. Manulife Bank One is a comprehensive financial solution combining a mortgage, a bank account, short-term savings, income, and other debts. Manulife One allows you to use your income and short-term savings to repay your loan balance. An approved borrowing limit allows you to access money whenever you need it. In addition, you can increase or decrease your mortgage payments with access to your home equity as needed.
Manulife Bank One also enables you to split your mortgage into up to 5 portions and set up different terms, rates, and payment schedules for each of them. This way, you can have portions with fixed and variable rates, open and closed terms, thereby protecting yourself from rate fluctuations and prepayment penalties.
A variable rate changes with Manulife One Base Rate, which is 5.20% at the moment of writing this review. A fixed rate for closed mortgages ranges from 4.45% to 6.24%, depending on the term. The terms for closed mortgages range from 6 months to 10 years.
An interest-bearing Manulife Bank One account provides a 1.25% interest rate for positive balances and involves a $16.95 fee for unlimited daily banking. For seniors aged 60 and older, this fee is $9.95. Maintaining a balance of at least $5,000 allows you to waive the unlimited daily banking fee.
Manulife Bank Select. Manulife Bank Select is a solution combining a customizable mortgage and a high-interest chequing account. With Manulife Bank Select, you can split your mortgage into up to 5 portions with different amounts, rates, terms, and payment schedules.
A variable rate for a 5-year closed mortgage is 4.70%, and a 5-year open mortgage is 5.70%. A fixed rate for closed mortgages ranges from 4.45% to 6.24%, depending on the term. The terms for closed mortgages range from 6 months to 10 years.
A chequing account you get with Manulife Bank Select mortgage is available either for a $9.95 monthly fee or on a pay-as-you-go basis. Maintaining a balance of at least $5,000 allows you to waive monthly and transaction fees.
How to apply for a Manulife Bank mortgage?
There are several ways to apply for a Manulife Bank mortgage:
- By filling out the form to connect with a mortgage specialist
- By calling Mortgage Bank representatives at 1-844-239-4677
- By reaching out to your local advisor or mortgage broker
Requirements
To qualify for a Manulife Bank mortgage, you must be a Canadian resident of the age of majority in your province. Before applying, prepare your social insurance number (SIN).
A mortgage specialist will look at your credit score and income when reviewing your application. Be ready to provide information about your sources of income, your gross household income, and other financial obligations you might have.
Pros and cons
Mortgage options from Manulife Bank have definite advantages:
- Comprehensive solutions combining a mortgage, a bank account, short-term savings, income, and other debts
- An opportunity to split a mortgage into portions with different terms, rates, and payment schedules
- Easy mortgage loan repayment once you have an account funded
- An opportunity to use interest income to repay your loan balance
Still, there are certain disadvantages:
- Manulife Bank mortgages involve one-time fees — legal fees and a discharge preparation fee
- If your down payment is less than 20%, you will have to buy mortgage default insurance
How to make a payment?
To pay for your Manulife mortgage, you need to fund an account you get with a chosen mortgage option. There are many ways to deposit funds into your account — by setting up direct deposit, transferring funds between your accounts, depositing funds through an ATM, depositing a cheque through the Manulife Bank mobile banking app, or setting up Interac e-Transfers.
Once you do, you can use funds from your account to make a mortgage payment online or through the Manulife Bank mobile banking app.
