Debt is smart. It knows how to hang around for a long time squeezing more and more of your hard earned money out of you. But you can outsmart your debt by choosing the Manulife One account from Manulife Bank. Since 1999, more than 100,000 Canadians have switched to this innovative mortgage. Here’s why.
Traditional banking keeps what you have (your earnings, savings, short-term investments, etc.) separate from what you owe (your mortgage, loans, etc.). So you earn a lower rate of interest on your depositswhile paying a higher rate of interest on what you borrow. This keeps you in debt longer and paying more interest over time.
But what if your deposits and your borrowing were combined into a single account so that every dollar you earned automatically went towards paying down your debt?
That’s exactly what Manulife One does, and more! It brings your mortgage, savings and income together to help you:
- save thousands in interest;
- be debt-free years sooner;
- enjoy financial flexibility; and
- simplify your everyday banking.
That’s because with Manulife One every dollar you deposit goes towards paying off your debt, every day find out how.
How Manulife One Works
Manulife One is an innovative all-in-one banking account that puts all your money to work all the time in order to outsmart your debt. Here’s how it works.
1. Manulife One lets you consolidate your debts to reduce your borrowing costs.
Your Manulife One account allows you to consolidate all of your debts (loans, credit cards, etc. - up to your borrowing limit) at a competitive, low interest rate. By repaying your higher-cost debt from your Manulife One account, you could reduce your interest costs and become debt-free sooner.
2. Manulife One uses your income and savings to reduce your borrowing costs even further.
The best way to lower your borrowing costs is to pay down the principal that you borrowed. When you transfer your savings and/or short term investments into your Manulife One account, they go immediately towards paying down your borrowings. The same applies to your income. Every deposit that you make into the account reduces your debt, saving you interest costs until you need to withdraw funds again to pay for your monthly living expenses. Over time, what you save in interest will likely be more than what you would have earned.
3. Manulife One simplifies your banking by bringing your income and debt together.
With a Manulife One account, your income and your debt are all together. So you don’t need to write cheques or transfer funds from one account to another. This way you never need to worry about missing a mortgage payment. Plus, your Manulife One account lets you:
- Pay bills by cheque or online (including pre-authorized bill payments)
- Pay for store purchases with a debit card (including getting cash back)
- Withdraw or deposit funds1 at ABMs2
- Plus much more.
There’s just one difference – whatever is left over in your Manulife One account at the end of the day goes directly towards reducing your borrowing costs. So all your money is working for you as hard as it can – 24/7/365.
4. Manulife One lets you enjoy financial flexibility.
Some traditional mortgages make it difficult or inconvenient to repay your debt more quickly. But with Manulife One, the debt in your Main Account is automatically reduced any time you make a deposit to your account. And, when you have extra money to deposit, such as a gift, bonus, tax refund, etc. your debt is automatically reduced. This gives you the financial flexibility to pay down your debt on your terms, not on your bank’s terms.
Manulife One also gives you the financial flexibility you need to deal with unexpected expenses or take advantage of great buying opportunities when they come up; and you don't have to jump through hoops to do it. You can access the equity you’ve built up in your home (up to your borrowing limit) at any time just by writing a cheque, making a debit purchase or transferring money electronically.
With Manulife One, you’ve got the flexibility to repay your debt more quickly when you have extra money available and also to conveniently access that money when a spending need arises.
Ready to outsmart your debt? Want to know more?
Contact us now to find out how Manulife One will work for you.