www.TAX FREE MONEY. info Helping Clients Reach Financial Security "No Matter What"	Ken Armstrong  Insurance & Financial Services Milton, Ontario  905-878-0951
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What is Manulife One?
Manulife One is an all-in-one personal borrowing and chequing account that is changing the way Canadians manage their money. This revolutionary account makes your money work harder . . . and could save you thousands of dollars simply and easily.

Sound too good to be true? Well, the concept is already proven: In Australia, more than one-third of all new mortgages are set-up in plans similar to this. In Canada, Manulife One is the first and only such flexible mortgage account offered to Canadians. But it's much, much more than a mortgage. Take a look for yourself:

How Manulife One works
What makes Manulife One different?
It's an account that can fit just about everyone's needs:
Manulife One as a "mortgage"
Manulife One as a "second mortgage"
Manulife One as a "super" line of credit
Manulife One as a "high powered" chequing account

Flash Demonstration of Manulife One

How Manulife One works
The idea behind Manulife One is simple: to put your income and savings to work harder to reduce your total debt and the amount of interest you pay on money you borrow.

Consolidate your debts
When you open a Manulife One account, we'll lend you up to 75% of the current market value of your home, using your home as security. You use this money to pay off whatever is left of your existing mortgage, as well as any other outstanding loans you might have.

Put your savings to work
Instead of having your chequing account and savings balances and short-term investments sitting earning little or no interest, Manulife One puts that money to work for you. It applies those balances against your borrowings, instantly reducing your total debt . . . and saving you much more in interest costs than you'd likely ever make in interest earnings!

Puts your income to work
By adding your regular income to the account, you further reduce your debt (and the interest you pay on that debt!) the minute you make the deposit. Since interest is calculated on a daily basis (but not compounded daily!), your income is immediately working for you, until you need to use it for your monthly expenses. With even one extra dollar of your income in your account, you have less debt than you did before and so you pay less interest!

Convenience and flexibility
In one easy step, the key elements of your financial life - your mortgage, short-term savings, chequing account, credit cards, loans and income - are all combined within a single multi-purpose account.

Now, instead of trying to keep track of monthly statements from different sources, you'll always know exactly where you stand financially, thanks to the convenience of your Manulife One monthly statement.

And you can access your money any time and almost any way, through:

Debit card
ATMs
Cheque writing
Telephone banking
Internet banking
Amex card
Say "good-bye" to fixed payments
The ultimate payment flexibility: By depositing your income into the account, your payment is automatically covered. Plus, you can make lump sum payments whenever extra cash is available, without penalty. And, you can always get at that money if you need it.

In any month (assuming you have the room), you can take more money out than you put in. Of course, over time you'll need to put more money in than you take out, to pay down your account!

What makes Manulife One different?
Everything in "one"
Manulife One is literally an all-in-one account. It combines short-term savings, chequing, and borrowings into a single account. Every dollar you have is working for you!

Traditional banking keeps these functions separate, but that means your extra dollars and your income can't help to reduce your debt on a day-to-day basis. Instead, that money sits in a chequing or savings account earning very little for you.

Sub-accounts
Manulife One allows you to set-up separate "sub-accounts" within your account so you can track certain borrowings separately. For example, if you wanted to borrow for investment purposes and track the interest on those borrowings separately (to deduct for tax purposes), you could set up a sub-account to do just that. (And we'll report the interest costs separately on your monthly statement!)

Lock a portion
Manulife One also offers the option of setting up one "fixed-rate" sub-account. This allows you to lock in part of your borrowings (up to 75% of the current balance) in a fixed-rate sub-account. This means that should you be concerned that variable interest rates are rising, you can shelter some of your debt without having to cancel your entire account.

Use someone else's money
Manulife One is meant to help you cut your interest costs, so the American Express® Gold Card we offer is a "charge" card (which must be paid each month) rather than a credit card (which allows you to carry balances.) Since the Gold Card must be paid at the end of each month, you won't be paying higher interest rates for carrying balances from month to month.

World's greatest statement
To go with your all-in-one Manulife One account, you'll get an all-in-one comprehensive monthly statement that is second to none. Each month, the statement provides a complete reconciliation of account transactions. Plus, it provides a graph illustrating your progress in paying off the debt . See sample statement.

High-powered interest earning
What happens when it is paid off? Once you're debt-free, you can continue to use your all-in-one, simple and sensible account and continue to have access to the borrowing power of Manulife One.

Plus, when you begin to carry a positive balance in your account, Manulife Bank gives you a highly competitive, money-market interest rate on every dollar you put into your account – starting with the first dollar! No minimum balance is required to earn this exceptional rate. How exceptional? Check out our current credited rate!

Manulife One as a Mortgage
When you open a Manulife One account, we'll give you up to 75% of the value of your home to pay off your existing mortgage, and any additional debts you may have.
Free appraisal…Free title insurance
Any time a mortgage is set up there are costs involved. Appraisal fees are charged to assess the value of the property, and legal fees result from title searches, witnessing the signatures and registering the mortgage.

With Manulife One, Manulife Bank covers the appraisal costs, and, provided you use the services of our Title Insurance program – we'll cover the legal fees as well (assuming it is straight forward title search, on a mortgage renewal – not a purchase.)

We do not cover any penalties or fees that your current financial institution charges you for canceling your mortgage early. And there is a monthly admin fee that covers unlimited banking throughout the month.

It's as easy as 1-2-3
By combining your chequing account with your mortgage – and putting your short-term savings and your income to work saving you interest costs – you're able to pay off your mortgage years earlier and for thousands of dollars less than with a traditional mortgage. In fact, it's estimated that a typical Canadian could pay off a 20 year mortgage in 13 or 14 years, and save $20,000 to $30,000 in interest without doing anything differently than they are doing today – except using the Manulife One account. Find out more about how Manulife One works.

To open a Manulife One account
 
 

Manulife One as a Second Mortgage
If your first mortgage is not yet up for renewal, you may be able to open Manulife One in the second position, and then roll your first mortgage into the account when the time is right. This helps you avoid costly cancellation penalties for your current mortgage and allows you to enjoy the advantages of Manulife One immediately.
Calculating your second mortgage
To open a second-position Manulife One account, enough of your first mortgage should be paid down so that you have the room for a second mortgage to be added.

Calculate 75% of the value of your home*. Then, subtract the amount of your current mortgage from that 75%. If the difference is at least $20,000, you could get an early start on your Manulife One account.

*Please note that in some areas, it may be 60%.

What does it cost?
As with a regular Manulife One account, we cover the appraisal and normal legal costs (if you use our Title insurance program.) There is a monthly admin fee that covers unlimited banking throughout the month.

Our usual interest rate for a second-position account is the Manulife One Base Rate plus 1%. However, as a special "early opening" offer, Manulife One as a second mortgage is charged our Base Rate until the first mortgage renews.

So, you can open the account and enjoy almost all of the same features of a regular Manulife One account. When your first mortgage comes up for renewal, your account reverts to the normal second position interest rate. However, if you move your first mortgage into your Manulife One account, it becomes a regular account and is charged the Base Rate only. Find out more about how Manulife One works.

To open a Manulife One account
 
 

Manulife One as a "Super" line of credit
Manulife One was developed first and foremost to help Canadians get out of debt faster. But even without a mortgage, you'll find benefits in using Manulife One!
In fact, you can open a Manulife One account if you don't have any debt at all. If you expect you'll need to borrow money in the future – for a new car, a vacation, a wedding, your child's education, an investment opportunity – and you don't want the hassles of negotiating a loan each time, Manulife One could be the answer for you. It can simplify your finances and, with its "super" debt pay-down capability, help you pay back those borrowings quickly and easily.

How it works
Paying down what you borrow is almost as easy as borrowing it in the first place, because it combines your line of credit with your chequing account.

Now, instead of having your income sit in a chequing account (earning you virtually nothing), it's deposited directly against your borrowings…so you have every dollar you earn working for you first – until you need to take it back out for monthly expenses.

And, by having your income deposited directly into your account, your monthly payment is automatically taken care of. No need to transfer money between your chequing or savings account into your line of credit . . . or from your line of credit to your chequing account. Everything is together in one simple account.

What happens when it is paid off? Well, you still have that super line of credit backing you (along with that simple, all-in-one account!) But, when you begin to carry a positive balance, your money earns money market interest rates…often at rates several times what most banks pay you on their chequing accounts! Check out our current credited rate!

No cost to open
We cover the appraisal and normal legal costs (if you use our Title insurance program.) You may incur extra legal costs if there are any title issues or you are purchasing a new home. And there is a monthly admin fee that covers unlimited banking throughout the month.

Otherwise, the account can be opened with no debt and, therefore, no interest charges.

And, you'll have the full confidence of a super line of credit behind you and the advantage of an incredible interest rate paid on any positive balances. Find out more about how Manulife One works.

To open a Manulife One account
 
 
 

Manulife One as a "high power" chequing account
Manulife One was designed to make sure Canadians could maximize the value of every dollar they earn by applying it against their debt - rather than having it sit idly in low or no interest accounts. But, once you're out of debt, we want to make sure you continue to maximize the value of the money you earn.
No minimum balance required
We offer you one of the highest rates of interest in the market . . . without the requirement of a minimum balance. As soon as you have crossed from debt to credit – even one cent in a positive balance! – your money starts to earn money-market interest rates. Check out our current credited rate!

And, because Manulife One's "super line of credit" remains with you after you've paid back any borrowings, you can borrow whenever you need and pay it back quickly and easily!

No cost to open
We cover the appraisal and normal legal costs (if you use our Title insurance program.) You may incur extra legal costs if there are any title issues or you are purchasing a new home. And there is a monthly admin fee that covers unlimited banking throughout the month.

Like having a great big overdraft!
Otherwise, the account can be opened with no debt and, therefore, no interest charges.

Think of it as a chequing account with great overdraft protection and the advantage of an incredible interest rate paid on any positive balances. Find out more about how Manulife One works.

To open a Manulife One account