Whether you’re a first-time homebuyer, refinancing or want a more convenient or integrated way of banking, Manulife Bank offers a range of mortgage choices. Which is the right one for you?
Manulife One is an innovative, all-in-one account that allows you to combine your mortgage, personal loans and lines of credit with your income and short-term savings. It can save you interest costs and give you more control over your finances. It’s an effective cash flow and debt management tool; and, you can use freed-up cash flow to address other financial needs.
One of the key advantages of Manulife One is the ability to consolidate your debt and enjoy a competitive low interest rate(s). However, there may be times when you'd like to track some of your debt separately or lock-in a portion of your debt at a fixed rate.
Manulife One gives you the flexibility to divide your debts between up to 15 tracking sub-accounts and/or up to five term sub-accounts.
Effective November 16, 2012, if you set up a NEW Manulife One account and request a credit limit between 65% and 80% of the value of your home, the amount above 65% must be allocated to a term sub-account in which the credit limit of the overall account decreases by the amount of the principal payment.
Manulife Bank Select
Manulife Bank Select provides you with an integrated banking solution that combines a mortgage with a high-interest chequing account.*
Preferred Rate Mortgage
If you’re looking for a traditional mortgage, Manulife Bank’s Preferred Rate Mortgage gives you a low fixed rate – guaranteed to be among the best in the marketplace – without haggling.
With all of our mortgages, you can reduce your interest costs and pay down your debt more quickly by taking advantage of our prepayment privileges.
For Manulife One, you can pay off your Main Account in full at any time without penalty. Prepayment options for sub-accounts differ depending on the sub-accounts options you’ve selected.
- Tracking sub-accounts and any open term sub-accounts can be paid in full at any time without penalty.
- For closed term sub-account(s) you can make a lump-sum payment up to 20% of the original balance in each year of the term without incurring a prepayment penalty.
Manulife Bank Select allows you to pay up to 20% of your original mortgage amount toward the outstanding principal each year without incurring a prepayment penalty. This applies to closed term mortgages. If you have an open term mortgage, you may prepay any amount at any time, including the full principal, without penalty. In addition, you can increase your regular payments by up to 25% each year. If you choose to split your mortgage into portions, you can make these prepayments on any or all of the portions. For closed terms, a prepayment penalty fee would apply for prepayments greater than the privileges noted above.
Preferred Rate Mortgage also features a pre-payment privilege that allows you to pay up to 20% of your original mortgage amount toward your principal each year without incurring a prepayment penalty. This applies to closed term mortgages. If you have an open term mortgage, you may prepay any amount at any time, including the full principal, without penalty. Once a year, you can increase your regular payments by up to 25%.
These are great ways to pay your mortgage off sooner, saving you hundreds, even thousands of dollars in interest over the life of your mortgage.
Our prepayment penalty section provides detailed information on how Manulife Bank calculates prepayment penalties for our mortgages.
Looking for general information about mortgages? Visit the Mortgage 101 section for detailed information that we hope will help you choose the mortgage that best suits your needs. Here you will find easy-to-use mortgage calculators, a glossary of mortgage terms and language that may be new to you, and helpful FAQs that provide answers to great questions like:
- What is the difference between a fixed and variable rate mortgage?
- What is the difference between an open and a closed term?
- What is the difference between long-term and short-term mortgages?
- How can I pay off my mortgage faster?
Mortgage Loan Insurance
If you have a down payment of less than 20%, you will need to purchase Mortgage Loan Insurance. Mortgage Loan Insurance protects the lender in the unfortunate event that a property forecloses. This insurance is offered by the Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial. In some instances, it is required even if the down payment is 20% or more. Those cases can be explained to you by your Manulife Bank representative. If you do require Mortgage Loan Insurance, we will provide you with a Mortgage Loan Insurance Disclosure form that clearly identifies your premium and all your personalized details in relation to it.
*Interest earned is calculated on the daily closing balance and added to your account monthly.
The Financial Consumer Agency of Canada (FCAC)
The FCAC is an independent government body that oversees the conduct of federally regulated financial entities to ensure they comply with federal legislation and regulations. They also provide consumers with information relating to their rights and responsibilities in their dealings with Canadian financial institutions. For general mortgage information from the FCAC, please visit: http://www.fcac-acfc.gc.ca/eng/consumers/mortgages/index-eng.asp
Conventional (standard) mortgages and collateral mortgages
All mortgage loans are secured by real property (such as your house), and that security is recorded in the appropriate provincial or territorial registry office. Some provinces refer to this as the registration of an encumbrance or a "charge" (or “hypothec” in Quebec). There are two types of charges that may be registered: conventional (also known as "standard") or collateral.
Manulife One and Manulife Bank Select are registered as collateral charges, while our Preferred Rate Mortgage is registered as a conventional (standard) charge. Learn more about the similarities and differences between collateral and conventional (standard) charges here or on the Canadian Bankers Association website.