Manulife Mortgage Archives - Best Mortgage Online

Introduction to Manulife Bank

Manulife Financial Corporation is Canada’s largest and most reputable financial institution. Founded in 1887, it offers a wide range of products and services, including insurance, banking, and wealth management, to over 30 million customers worldwide.

With over $1.3 trillion in assets under management, Manulife ranks among the top 15 largest life insurance companies globally.

Manulife Bank is the banking division of Manulife Financial Corporation, established in 1993. Manulife Bank offers a range of banking solutions including savings accounts, chequing accounts, term deposits, and commercial lending.

Current Manulife Mortgage Rates

Manulife mortgage rates are primarily based on the lender’s prime lending rate of 6.70% as of September 2024. This key rate acts as a starting point to then determine actual mortgage rates, which are calculated by adding a spread or margin above prime based on the specific product and terms.

Here is an overview of current rates for popular Manulife mortgage options:

Manulife Fixed Mortgage Rates

Term	Manulife Rate	Lowest Rate
1-Year Fixed	7.59%	5.84%
2-Year Fixed	6.74%	4.89%
3-Year Fixed	5.59%	4.24%
4-Year Fixed	5.54%	4.29%
5-Year Fixed	5.34%	4.14%
7-Year Fixed	6.44%	N/A
10-Year Fixed	6.69%	5.79%

Manulife Fixed Rate Mortgages

Manulife Variable Mortgage Rates

Term	Manulife Bank Rate	Lowest Rate Nationally
5-Year Variable	5.95%	4.99%

Manulife Variable Rate Mortgages

*Rates current as of September 2024 [Source]

When choosing between fixed and variable, keep in mind that variable rates come with some risk of increases but generally start lower. Fixed rates provide stable payments but may cost more overall if rates decline.

Manulife also offers unique rate incentives for certain borrowers:

New graduate program: Features a 5-year fixed rate up to 0.20% lower for graduates of the last 3 years. An income of at least $40,000 per year is required.
Loyalty program: Offers a rate discount of 0.10% for existing Manulife clients signing up for a new 5-year fixed mortgage.
Energy efficient homes: Borrowers with an energy efficient home certification can qualify for a 0.10% discount on 5-year fixed mortgages.

Manulife One Account

The Manulife One account provides an all-in-one integrated solution that combines your mortgage, home equity line of credit (HELOC), chequing and savings accounts into one single account.

This flexible product allows borrowers to seamlessly manage their day-to-day finances while also benefitting from potential interest savings. It uses a readvanceable mortgage structure that allows you to access extra funds from your home equity line of credit anytime you need them.

Consolidate debts at a lower interest rate under one account
Access extra funds from your home equity line of credit anytime
Make lump sum payments to reduce your mortgage principal rapidly
Offset savings deposits against your overall balance to lower interest
Daily interest calculation ensures deposits work to your advantage
Available credit rises automatically as you pay down the principal
No reapplication is needed to access additional equity

This integrated structure makes optimizing your finances and accelerating your debt repayment easier. However, discipline is required to avoid overusing your home equity line of credit.

With Manulife One, all your transactions, from bill payments to deposits, are easily managed through one central account. You can also use lump sum deposits to pay your mortgage principal faster and lower your interest expenses.

Manulife Bank Select

Manulife offers its Bank Select product for borrowers seeking a more traditional mortgage experience. This option lets you customize your mortgage by dividing it into up to five segments or “portions” with their interest rates, terms and payment schedules.

For instance, you may want part of your mortgage at a variable rate while keeping the remainder locked into a fixed-rate term. The flexible structure of Bank Select mortgages gives borrowers added control over their loans.

Features of Manulife Mortgages

Flexible Payment Frequencies

Manulife allows borrowers to select their preferred mortgage payment options, including weekly, bi-weekly, semi-monthly or monthly payments. Frequent payments can help you pay off your mortgage faster and save on interest charges.

Mortgage Protection Insurance

Manulife offers optional mortgage protection insurance to provide added peace of mind. This covers your outstanding mortgage balance in the event of death or a critical illness diagnosis. Policies are available for mortgages up to $1 million.

Property Tax Payments

Many lenders, including Manulife, offer borrowers the option of paying property taxes as part of their mortgage payment. This convenient feature avoids the hassle of budgeting for separate tax bills.

With Manulife, you can request to have your property taxes bundled into your regular mortgage payments. Manulife will then remit these funds to your municipal tax office when due. However, you won’t earn interest on the tax portion while held by the lender.

Applying for a Manulife Mortgage

Manulife offers three ways to submit a mortgage application:

Online through their website
By phone at 1-877-765-2265
Through an accredited mortgage broker

The required documents you’ll need to provide include:

Proof of income
Current bank statements
Details on debts and assets
Down payment source documents
Government ID
Home Appraisal

Once submitted, you can generally expect an initial approval decision within a few business days. However, the full underwriting process typically takes 30-60 days, including home appraisal, credit checks and verification of all income and assets.

Preparing your documents in advance can help speed up the approval timeline. Manulife also offers pre-approvals, allowing you to lock in a rate for up to 120 days while you search for your new home.

Alternatives to Consider

While Manulife mortgage products offer useful flexibility and features, it’s wise to explore alternatives from other top Canadian lenders as well.

Manulife One vs Traditional Bank Mortgage

The Manulife One account’s all-in-one structure differs greatly from a standard mortgage. Conventional mortgages have clear divisions between your lending, everyday banking and credit accounts. While this segmentation provides greater simplicity, it lacks the consolidated efficiency of the Manulife One.

Traditional mortgages also don’t allow easy access to extra home equity without requiring a full reapplication. In contrast, Manulife One borrowers can tap into these funds anytime as their principal is paid down.

On the other hand, some borrowers may prefer keeping their mortgage isolated from other financial obligations. And Manulife One’s flexibility requires strict discipline to avoid overusing your home equity credit.

Options from Other Lenders

Beyond the major banks, here are some top alternative mortgage lenders to consider:

Nesto – An online-only lender offering exceptional rates through digital applications and AI technology.
Motive Financial – Leading lender focused on flexible features and options for customization.
First National – Top broker with access to mortgages from over 25 lenders.

Comparing quotes from multiple lenders ensures you find both the best rate and product fit. A broker like First National can explore different options for you.

Discover our Best Banks for Mortgages in Canada

Customer Experiences with Manulife Mortgages

Overall, Manulife mortgage holders highlight the flexibility and convenience offered through their products. Specific benefits frequently mentioned in customer reviews include:

Ability to consolidate higher-interest debts into one lower-cost Manulife One account
Simplified finances with one central place to manage all accounts
Faster debt repayment through lump sum payments and savings offsets
Lower interest costs by linking everyday banking under their mortgage
Access to home equity without needing loan approvals each time

However, some borrowers caution that Manulife One loans require financial discipline. If you consistently carry high balances on your line of credit, interest expenses can quickly add up. Some other drawbacks cited include:

Potentially higher rates compared to competitors
Complex account structure less ideal for those seeking simplicity
Monthly fees apply unless your balance remains positive
Strict prepayment rules depend on your sub-account terms

Checking customer reviews can provide greater insight into the pros and cons of choosing Manulife for your mortgage needs.

Keys takeaway: Are Manulife Mortgages a Good Choice?

Based on their flexible features, Manulife mortgages are a strong option for borrowers wanting greater control over their finances. Primary advantages include:

Consolidation of all accounts for simplified management
Interest savings through balance offsets and lump sum payments
Penalty-free prepayments are possible on open-term portions
Home equity access without reapplying each time

However, these products require financial diligence to maximize their benefits without taking on excessive debt. Manulife’s rates also tend to be higher than those of some competitors.

Manulife One and Select loans are great choices for homeowners who actively manage their finances and want customizable mortgage features. But those seeking simplicity or rock-bottom rates may want to look at alternatives.

Overall, Manulife is a top pick thanks to its innovative mortgage structures and flexibility. However, comparing quotes from multiple lenders is wise to find your optimal match.

The mortgage experts at Best Mortgage Online can help you explore the ideal solutions for your unique situation. Get in touch today to start your journey towards mortgage freedom!

FAQs

Does Manulife offer mortgage pre-approvals?

Yes, Manulife provides pre-approved rates guaranteed for 120 days while you search for your new home. If you find a property within the set timeframe, this locks in a rate.

What fees and penalties does Manulife charge?

Manulife has standard closing costs, such as appraisal and legal fees. Prepayment charges vary based on your mortgage's terms. The Manulife One account has additional monthly fees if your balance goes negative.

How long does Manulife take to approve a mortgage?

Initial approval is within a few days, but full underwriting, including assessment and home appraisal, takes 30-60 days. Having all documents ready speeds up the process.

Can I make lump sum payments on a Manulife mortgage?

Yes, with certain Manulife mortgages, you can make extra lump sum payments to rapidly pay down your principal and reduce interest costs over time.

Does Manulife offer mortgage portability?

Manulife allows you to port your existing Manulife mortgage over to a new home in certain cases without requiring or paying penalties. Some terms and conditions apply.

What is Manulife One?

Manulife One combines your mortgage, HELOC, and daily banking into one integrated account for simplified financing management and access to your home equity.

How do I choose between Manulife fixed and variable rates?

Fixed rates offer stable payments, while variable rates usually start lower but carry some risk of increases if prime rate rises. Consider your budget and risk tolerance.

Can I make weekly or bi-weekly mortgage payments?

Yes, Manulife allows you to select weekly, bi-weekly, semi-monthly or monthly payment frequencies. More frequent payments help you pay off the mortgage faster.

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