Manulife One

[JRL]

Hello All:

I`ve read in a couple different places that the Manulife "One" product is a pretty effective mortgage financing solution. Can anybody comment on this? Looks like they`ll lend you up to 90% of the appraised value and your direct deposit employment income essentially reduces the principal of the mortgage all at once.

Note: it`s also a variable rate.

Anyone have any comments on this product? I`m sure there are other similar ones out there too.

Thanks in advance.

 

[MonteDobson]

One downfall is that there is a $14/month service fee...may want to check into a Scotia STEP or something like that.

Ask a good broker to find you the right product for your needs.

Regards,

 

[PeterKinchMortgageTeam]

QUOTE (JRL @ Mar 20 2008, 10:04 AM) Hello All:

I`ve read in a couple different places that the Manulife "One" product is a pretty effective mortgage financing solution. Can anybody comment on this? Looks like they`ll lend you up to 90% of the appraised value and your direct deposit employment income essentially reduces the principal of the mortgage all at once.

Note: it`s also a variable rate.

Anyone have any comments on this product? I`m sure there are other similar ones out there too.

Thanks in advance.

Manulife is essentially a big LOC. If that`s what you`re looking for - its the same as any other (though the others don`t charge the service fee). If you still have a mortgage and are looking for an LOC to access the equity - its probably not the best product for you. You`d probably be better off with a readvanceable product like the STEP or matrix. Talk to your banker or mortgage broker about the other products that are available before you commit!!

Hope that helps,

 

[JesseLee]

QUOTE Looks like they`ll lend you up to 90% of the appraised value

Are these 90% loan all been charged at prime? if so that would be really nice.

I didn`t use M1, but did some study. The M1`s prime rate is higher comparing with conventional P-x rate however if you can borrow up to 90% at prime rate then thats fantastic.

Yes, once you link with your payroll then every cent you put in will help to reduce interest until you withdraw it.

 

[PeterKinchMortgageTeam]

QUOTE (JesseLee @ Mar 20 2008, 02:34 PM) Are these 90% loan all been charged at prime? if so that would be really nice.

I didn`t use M1, but did some study. The M1`s prime rate is higher comparing with conventional P-x rate however if you can borrow up to 90% at prime rate then thats fantastic.

Yes, once you link with your payroll then every cent you put in will help to reduce interest until you withdraw it.


The rate is usually prime. If you borrow up to 90% however, you do have to pay a high ratio insurance fee (that usually has to be paid on any LTV over 80%). I imagine Manulife charges that as well. If they don`t, it might not be a bad idea to run an amoritization schedule to compare the manulife rate with the prime rate - to see which is a better deal for you.