Manulife One Discovery Centre
Be debt-free sooner
Most of us dream of the day we become debt-free—we think of it as a time of reduced stress, freedom to travel or even an important step towards retirement. But for many Canadians, being debt-free is a long way off. With Manulife One it doesn’t have to be.
Make all your money work for you, all the time
The secret sauce for Manulife One—what makes it different from traditional mortgages—is that it allows you to use all of your money to reduce your debt and save you interest.
Let’s look at the 3 key steps you can take to pay less interest and become debt-free sooner with Manulife One:
Automatically deposit your income
Manulife One works best when you use the Main Account as your everyday bank account. When you deposit your income into the Main Account, your debt is immediately reduced by the full amount of your income. As you buy the things you need and pay your bills throughout the month, your debt will increase. But as long as your income is greater than your expenses, your extra money acts like an automatic prepayment on your mortgage— keeping your debt lower and saving you interest.
Deposit money sitting in other bank accounts
You can deposit as much money as you want into your Main Account, at any time, without a prepayment penalty. If you have money sitting in a rainy-day savings account, you should move it into your Main Account. This will immediately reduce your debt, and almost certainly save you more in interest than you would have earned on your savings. And, you always have access to that money, and more (up to your borrowing limit), if a need arises.
Spend less than you earn
While your income may not exceed your expenses every month, it’s important that it does so over the long term. This is because when your extra income stays in your Main Account, it reduces your debt and saves you interest. The more extra money you can leave in your account, the sooner you’ll be debt-free. It's a game changer.
There are a few easy things you can do to make sure you’re paying down your debt and reaching your financial goals:
How to be debt-free sooner
When you buy a home, mortgage-freedom can often seem like a distant destination. But what if you could get there faster and save thousands in interest along the way? Here’s how Manulife One can help you reach mortgage freedom sooner.
- The interest on the Main Account is calculated daily and charged monthly. Every deposit you make into the Main Account reduces your debt, helping you pay less interest.
- Paying less interest means that more of your money goes toward reducing your debt – which can help you pay off your mortgage faster.
- There are some important steps you can take to pay less interest and repay your debt sooner with Manulife One:
- Automatically deposit your income
- Deposit money sitting in other bank accounts
- Spend less than you earn
- Budgeting—understanding how much money is coming in and going out—will set you up for success with Manulife One and help you reach your financial goals.
We invite you to talk to your advisor as part of your overall financial plan or your mortgage broker to find out more about Manulife One. If you don’t work with an advisor or broker, one of our mortgage specialists would be happy to help.
Manulife One is offered by Manulife Bank of Canada.
Manulife, Manulife Bank & Stylized M Design, Stylized M Design and Manulife One are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.