Manulife One account
Just want to see if it's worth it to open one.
Thanks in advance.
Aug 16th, 2018 9:26 am
Aug 16th, 2018 6:30 pm
Aug 16th, 2018 7:19 pm
Aug 16th, 2018 7:49 pm
Aug 17th, 2018 8:44 am
The main good thing is that every single payment you get, goes immediately against the principal.
Aug 17th, 2018 10:43 am
Aug 17th, 2018 12:54 pm
Aug 17th, 2018 12:56 pm
The payment against the capital is what got my interest.rob444 wrote: ↑ The main good thing is that every single payment you get, goes immediately against the principal.
However there are many negatives about this type of account:
- check if interest rate is higher vs other kinds of mortgages/HELOCs. The advantage you get from more frequent payments, may be easily offset by a higher interest rate
- they charge a monthly fee of something like $17
- uses "The Exchange" network ATMs. Typically not as convenient as the big-5 bank ATMs
- this account is incredibly easy to abuse, as you can freely take out money against your home on a whim. You need to be meticulous in your budgeting and daily finances to ensure you're actually paying down your home and building equity
For most people with a regular job and regular paycheques, this account is probably not a good choice. I believe this account is designed more for those with sporadic, larger amounts of money coming in and would benefit from quicker paydown of the principal.
Aug 17th, 2018 1:03 pm
How many extra payments are you expecting to do over any given year? Remember in any regular mortgage, you also have pre-payment privileges to pay down the principal.
Aug 17th, 2018 1:06 pm
Aug 17th, 2018 1:15 pm
Practically guaranteed you'll get a better return on your money with an RESP incl the 20% government grant, vs paying down mortgage.