This is just my opinion, but I HATE the Manulife One mortgage advertising. I'm sure many of you have seen the ads on TV, "Whats your Manulife One number?" supposedly your number is the amount of interest you will save by combining all your debts, mortgage, savings and income into one account...
DID YOU GET THAT? Include ALL your savings and income in with all your debt...kinda goes against the first rule of saving & investing..."Pay Yourself First"...But let me explain...
The Manulife One mortgage is simply a BIG Line Of Credit mortgage which I can get you from most any bank, and often at cheaper rates than Manulife One!
Manulife wants you to refinance your house to the maximum allowable, and consolidate ALL your bills, loans and credit cards into this Line Of Credit.
Now, take ALL your savings, EVERY last penny, and put it into the Line Of Credit to pay it down somewhat, and then also put ALL your pay cheques into the Line Of Credit as well.
GREAT.... Yes, you will reduce your debt initially, and your full pay cheque will reduce it even more when it goes in every 2 weeks, but now EVERY PENNY YOU SPEND has to come out of this Line Of Credit as well.
What about saving for your retirement? what about investing and investment growth? Manulife seems to have conveniently neglected these important considerations.....
And guess what? The latest stats show that the average Canadian spends more than they make each year.....So, over time this Line Of Credit debt will increase, until it reaches its limit, and you can't borrow any more!...The majority of Canadians also don't manage Lines Of Credit very well, if there is available credit it typically gets spent on something...incurring even more debt.
The balance on most Lines Of Credit rarely, if ever, reduce at all...Its a FACT!!!
So, why does Manulife promote this product? Because now THEY get to collect ALL the interest payable on your Line Of Credit each month...Hmmm, So, who is benefiting here?
And based on statistics they know that you will be paying them for a really, really long time!
Now, don't get me wrong, There is nothing wrong with a Line Of Credit mortgage for some people, especially those who are financially secure and have some unused equity in their home. A Line Of Credit with it's variable interest rate would even have provided some great savings over the last few years as interest rates decreased....BUT Please, Please, Please, don't fall for this ridiculous advertising....Call me to discuss ALL your financing needs, or to answer any questions you may have.
With 27 years of direct mortgage lending experience, first with a major bank, then a local credit union and now as a Mortgage Broker, I have arranged mortgages on almost every type of property imaginable....even a 50+ ft fishing trawler!!