Preferred Rate Mortgage
Whether you are purchasing your first home, making a move or looking to refinance, Manulife Trust's Preferred Rate Mortgage provides a variety of options to suit your specific needs. With a Preferred Rate Mortgage, you may be eligible to get up to 95% of the appraised value of your home at one of the lowest fixed rates available. You don’t have to haggle and you don’t need to waste time comparing rates or reading the fine print on so-called “special” offers.
Before you start shopping for your new home, it’s easy to arrange a pre-approved mortgage with Manulife Trust. Pre-approval is based on your financial situation and allows you to search for your new home with the confidence of knowing your maximum mortgage amount. Plus, there is no obligation and getting pre-approved costs you nothing.
When it comes to choosing your mortgage payment frequency, it's important to consider your options. With a Preferred Rate Mortgage, you can make payments monthly, semi-monthly, bi-weekly, bi-weekly accelerated, weekly or weekly accelerated. You can also choose the day of the week or the day of the month for your mortgage payment. Scheduling your payment with your payroll frequency can make budgeting easier. Is your goal to pay off your mortgage as quickly as possible? If so, it is important to note that choosing a payment option that happens more frequently will allow you to pay down your principal faster which therefore will also reduce your interest costs over the life of your mortgage.
The interest term that’s right for you depends on many things, including your comfort level with knowing your mortgage payment into the future and where you believe interest rates may be headed. You must choose your interest term when your mortgage is set up and each time you renew. The Preferred Rate Mortgage offers a variety of fixed interest rate terms to meet your needs. You can choose from 6-month closed, 1-year open, 1-year closed, 2-year closed, 3-year closed, 4-year closed, 5-year closed, 7-year closed and 10-year closed.
You will also choose your amortization, which is the estimated amount of time your mortgage will take to pay in full. Your mortgage amortization can be as much as 30 years, although you may wish to select a shorter time-frame if you want to pay your mortgage off more quickly. This can also save you money in interest costs.
When you apply for a Preferred Rate Mortgage, we'll guarantee you the interest rate that’s in effect on the date you sign your application for up to 90 days (120 days for a new construction). This can be valuable protection if rates rise before your purchase is completed. If the interest rate for your selected term is lower on the date the funds are advanced than it was on the date your mortgage was approved, you'll receive the lower of the two rates.
The Preferred Rate Mortgage features a pre-payment privilege that allows you to pay up to 20% of your original mortgage amount toward the outstanding principal each year without incurring a pre-payment penalty. For example, if your original Manulife Trust mortgage amount was $100,000, you could pay up to $20,000 annually against the outstanding principal.
In addition, once per 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.
Mortgage loan insurance
If you have a down payment of less than 20%, you will need to purchase Mortgage Loan Insurance. It’s a way of protecting 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 larger. 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.
To apply or to find out more about the Preferred Rate Mortgage, contact your financial advisor or contact us:
|Mail:||Manulife Trust Company
500 King Street North
P.O. Box 1602 STN Waterloo
Waterloo, ON N2J 4C6