Real Estate

Opinions On Best All-in-one style mortgage: TD Flexline, Scotia Step, Manulife One, or any other I may not have heard of

  • Last Updated:
  • Jun 7th, 2019 9:54 pm
[OP]
Newbie
Nov 11, 2015
38 posts
11 upvotes
Brampton, ON

Opinions On Best All-in-one style mortgage: TD Flexline, Scotia Step, Manulife One, or any other I may not have heard of

Hey there!



I have about a week to decide on switching my mortgage from CIBC. I wanted to switch to an all in one style, and wanted a broker to do it for me, but all the ones I spoke to essentially told me I would get a better deal if I dealt with the banks directly as they didn't really have to many unconventional options with my needs.



These seem to be the conventional options:



https://www.ratehub.ca/best-mortgage-rates/all-in-one



National Bank is out as they will not do rental properties, I haven't had a chance to contact Tangerine yet, but they absolutely appear to have the best interest rate. I have had a chance to speak to TD and Scotia, and Manulife will call me tomorrow. TD seems like the easiest to work with, and it would be convenient to have my accounts somewhere with such a robust install base. This is the main reason I'm not pursuing Canwise Financial and Laurentian.



Manulife appears to be the only one that is formally set up as an all in one account. It appears as if you can do it with the other accounts, but it isn't the main point, per say, but that's not necessarily a deal breaker.



Does anyone have any experience with any all-in-one accounts that would have some suggestions or recommendations?



Dealing with mortgage underwriters has been one of the single most annoying chores of my life. I really hope it's easier this time around.



Thanks for any help you may have!
4 replies
Deal Addict
Nov 13, 2013
1603 posts
633 upvotes
Ottawa
Can't answer your central questions but two points:
Keep in mind you will end up with a collateral mortgage which can limit your options on renewal and may lead to higher fees or rates.
You may complicate your tax situation for your rental property depending on how you use the product. For example if you draw money out for another purpose you shouldn't deduct this interest. This is straightforward. What about if your paycheck comes in and pays off part of the mortgage and then two weeks later you take a $10k vacation. This will be added to your debt. Can you deduct interest on this going forward? Many people probably do but it is not clear even if the previous 4 paychecks clearly reduced the size of the line of credit. Without this product those four paychecks go into your savings account and there are no issues.
[OP]
Newbie
Nov 11, 2015
38 posts
11 upvotes
Brampton, ON
fogetmylogin wrote:
Jun 3rd, 2019 5:05 am
Can't answer your central questions but two points:
Keep in mind you will end up with a collateral mortgage which can limit your options on renewal and may lead to higher fees or rates.
You may complicate your tax situation for your rental property depending on how you use the product. For example if you draw money out for another purpose you shouldn't deduct this interest. This is straightforward. What about if your paycheck comes in and pays off part of the mortgage and then two weeks later you take a $10k vacation. This will be added to your debt. Can you deduct interest on this going forward? Many people probably do but it is not clear even if the previous 4 paychecks clearly reduced the size of the line of credit. Without this product those four paychecks go into your savings account and there are no issues.
I am aware, but for my purposes it remains a much better product. The flexibility in payment, efficient use of cash-flow, access to funds, ease and scalability make it a much more attractive option.

Luckily the accounts do allow for partitions so the use of money for personal expenses can be tracked and manages easily enough, but this is a valid point and something to pay attention to!
Deal Addict
Nov 13, 2013
1603 posts
633 upvotes
Ottawa
Spadesheart wrote:
Jun 3rd, 2019 7:00 am
I am aware, but for my purposes it remains a much better product. The flexibility in payment, efficient use of cash-flow, access to funds, ease and scalability make it a much more attractive option.

Luckily the accounts do allow for partitions so the use of money for personal expenses can be tracked and manages easily enough, but this is a valid point and something to pay attention to!
I guess I am confused how the partition would work. You will get separate interest statements for each side? If you access the funds you are taking from the business side by definition no? Are you planning to pay off aggressively from your personal income or is the property hugely cash-flow positive? If from personal funds any mortgage allows this the difference with an all in one product is you can move in both directions and seamlessly. It seems a partition eliminates this. So you build up cash on one side that won't reduce your interest on the other side so what's the point. Not even mentioning the much higher interest rate you will pay. I know a lot of people are convinced they have done very well with these products and paid off their mortgage quickly but this is possible with any mortgage with pre-payment privileges.

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