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July 14, 2014

Creative and Friendly Banking – Really!

Creative and prudent methods to employ debt in financial planning can assist in reducing cost (by reducing interest), providing access to cash values of insurance products on a tax-free basis, and creating wealth through leverage. 

You may find a bank that owns a life insurance company but it is rare to find a life insurance company that owns a bank.  Manulife Bank provides banking solutions which can be part of an overall financial planning solution.  With debt management so important to financial planning it is beneficial to be able to use creative products from Manulife Bank.  Some of the key lending products from Manulife Bank are as follows:

MANULIFE ONE – Manulife’s very popular home equity line of credit allows you to borrow against the value of your home in a single all-in-one account that combines mortgage, personal loans and lines of credit with your deposited income and short term savings.  By having all your income deposited into this account you are basically reducing your outstanding mortgage with each deposit before you write cheques or make withdrawals. As a result, you could save thousands of dollars of interest.   Features of the plan are:

  •  Manulife Bank will advance up to 80% of the value of your home;
  • There are liberal lending ratios for self-employed or business owners;
  • Although it is advisable to repay interest and to make principal reductions, no regular payment is required;
  • Interest is charged at a variable rate, although both variable and fixed-rate sub accounts are available.
  • For the main account and any variable sub accounts, payment in full can be paid at any time;
  • For fixed rate sub-accounts lump sum payments of up to 20% are allowed;
  • Also available for businesses.
     

MANULIFE BANK SELECT – If you prefer to have a more traditional form of mortgage including specified payments then Manulife’s Bank Select may be for you. Under this program your mortgage is combined with a high­­-interest chequing account  Features of this plan are as follows:

  • The borrowing limit is up to 95% of the value of the home;
  • As this is a traditional type of mortgage principal payments that have been made cannot be re-borrowed.
  • Fixed and variable rates along with open and closed terms are available.
  • Lump sum payments up to 20% can be made annually.  Also, you have the option of increasing your regular monthly mortgage payment by up to 25%.
  • The chequing account portion of the Manulife Bank Select earns a competitive, high-rate of interest.

Should you wish to investigate the mortgage products offered by Manulife Bank, please let me know and I will introduce you to the bank representative in your area.

 INVESTMENT LOANS – Manulife Bank is a key source of investment loans to assist you in purchasing Manulife investments and insurance products.  When used prudently investment leverage can accelerate the growth of non-registered savings offering the opportunity for you to realize your investment goals sooner. Important features of Manulife Bank’s non-registered investment loans are as follows:

  • Loans available from $10,000 to $1,000,000 (up to $100,000 may be 100% leveraged);
  • Choice of interest only or principal and interest payment plans;
  • Loans may be paid off at any time without penalty;
  • Attractive floating interest rate;
  • No margin calls due to market fluctuations. If your investment declines due to market conditions, you will not have to make additional deposits.

ACCESS LINE OR CREDIT – This is Manulife’s lending vehicle to borrow against the value of your non-registered Manulife product such as Segregated Funds, Mutual Funds, GIC’s, other deposit accounts and permanent cash value life insurance policies.

RRSP LOANS – Manulife Bank will advance up to $ 23,820 (for 2014) with equal repayments over 12 to 24 months.  There is no penalty for early repayment. A wide array of investment products and options are available.

OTHER SPECIALIZED LENDING PRODUCTS – Lending vehicles are also available for financial planning strategies such as an Immediate Financing Arrangement or Insured Retirement Plan which allows owners of permanent life insurance policies to access the cash value of their policies on a tax-free basis. 

For access to Manulife Bank involving non-mortgage debt arrangements, please call me. If you are wanting to explore, more fully, the mortgage products available with Manulife Bank, I will be pleased to refer you to an authorized Manulife Bank representative.  Feel free to use the sharing buttons below to forward on to someone you think might benefit from this information.

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