Manulife One Mortgage

[Goodstuff]

The Manulife One mortgage sounds pretty good, at least at first glance.
Seems as though you can pay down the mortgage a lot faster than a conventional mortgage, without increasing your monthly payments.

Does anyone have experience with this?
Does it really work?

 

[RobMacdonald]

The short answer is yes that it works, but it`s based on a really simple concept of prepaying your mortgage. The other flipside to it, is that your investments will be tied into Manuallife mutual funds. There are several similar plans out there, some better than others so you have to do your due diligence.

Tax Deductible Mortgage Plan, Money Merge Account are two others that I`m familiar with. Basically, the plans rearrange your cash flow and calculate the precise time to prepay your mortgage.

If you set yourself up with a readvancable mortgage, you can do the same thing by working out a monthly budget and then do 2 things:

1. Use any surplus in your budget to prepay your mortgage. Then readvance the money for a qualified investment.
2. Use incoming cash to paydown the LOC portion, live off your credit card for the month, then pay the balance off with the LOC. (this can be risky if you don`t watch your budget!!) Effectively, you`ve used the banks money, without being charged interest for a month.

 

[Sandy Fransham]

We have two manulife one mortgages. They have been great! As we pay down the balance I then use the LOC `room` for buying more investment properties. You can set up sub accounts within your main account so that you can keep track of funds used as downpayments for tax time. I have one account that I use solely for my rental properties and have a manulife credit card tied to the account as well. I have it set up so that the credit card is automatically paid in full from the account each month.

I believe that way that we are `paying down our principal mortgage` and then using the available credit to invest with is similar to the Smithe manuveour.

I have a great contact here in Calgary that helped me set all of this up. He has been really helpful with all the questions we have had along the way and always gets back to us quickly. Email me if you are interested in getting his contact information.

Sandy

 

[mlwilliamson]

Hi Sandy,



do you know of someone in the Toronto area that can help me?



Michael

 

[NawarNaji]

Hi Michael,
You can have a re-advanceable mortgage on your primary residence and one rental property which will provide you with equity through the line of credit (which increases) as you pay down the principal.

 

[nchotalia]

What is the interest on these mortgages?

 

[MrHamilton]

[quote user=nchotalia] What is the interest on these mortgages?




The interest rate at this time is prime plus 1.5%



I too have a few Manulife ONE accounts and second Sandy's post however speak to your Mortgage Agent/Broker as they may have options less expensive than the Manulife ONE.



Also I'd like to point out we had used the Manulife ONE after a the first five year term of traditional financing had expired and by that time there was sufficient built up equity/appreciation for a downpayment on another property. For new acquisitions, we still use traditional, closed, variable mortgages because the rate is so much cheaper.



Hope that helps!

Erwin