Location: Brampton, Ont, Canada
Posted on: 29-09-09 16:36:32
can someone put some lights on "Manulife One account "
is it better then getting mortgage ?
what i learn so far is : Manulife One account is a line of credit on your equity.
they only charge interest rate ( no compound intrest) , u can use same account for mortgage as well as checking saving.
opinion please
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
If you need a HELOC, why not simply get one?
M1 account carries monthly fees - why pay a fee for something that you can get anyway.
In most HELOCs, you can do direct deposit of paycheques, etc.
What M1 gives you is a fluctuating debt balance, which goes up and down depending on whether you put money in or take out.
It "works" if you are disciplined and can keep track of how much goes in, how much comes out and can stay on top of the interest rates calculations.
This is IMHO of course.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
Location: Brampton, Ont, Canada
Posted on: 30-09-09 09:46:04
Thank Pratick
I really enjoy reading your reply...
But when u apply for HELOC , u still hv to take mortgage ,,m i right ? in that case u pay compound intrest.
while M1 just hv straight intrest charge...
by the way try to come often on CD 
hope u hv more time to spend on CD ..we need u
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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)
Quote:Not really - you get HELOC based on the equity in the home.
Originally posted by Blue_Peafowl
But when u apply for HELOC , u still hv to take mortgage ,,m i right ?
If home is fully paid off, then equity is the full value of the home.
M1 account is the same - it consolidates all your debt, including mortgage.
Quote:Traditional mortgage is compunded semi-annually, regular LOC/HELOC is compounded monthly, therefore, carries higher interest payments.
in that case u pay compound intrest.
while M1 just hv straight intrest charge...
The more frequent the compounding, the higher interest you pay.
All else being equal, you will pay more interest when compunded monthly vs semi-annually.
The reason it appears that you pay less interest with M1 is because everytime you make a deposit (like paycheque) it reduces your mortgage balance.
However, the flip side is that if/when you withdraw money for household expenses, the balance goes up.
Managing all this requires very careful monitoring.
When you have separate chequing, savings and HELOC accounts, it's easier to manage and control.
Before you lock into M1, I suggest shop around with other banks (Scotia has STEP program, RBC has similar, other banks too).
Also weight the benefits/flexibility of having separate accounts rather than locked into a single account, esp. one with a monthly fee.
Quote:Thanks for the appreciation.
by the way try to come often on CD
Good luck.
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"Mah deah, there is much more money to be made in the destruction of civilization than in building it up."
-- Rhett Butler in "Gone with the Wind"
