Case Study: Mike & Sarah

$46,980

Hi. I’m Mike, and this is my Manulife One number. It’s the amount of interest my wife Sarah and I could save over the life of our mortgage.

We’ve combined all our income, loans and savings into a single all-in-one account. We’re not sacrificing our lifestyle to save more. We’re just paying less interest to the bank.

How is this possible? Here's a breakdown of our financial situation before we switched to Manulife One and how this revolutionary all-in-one account is designed to save us thousands in interest costs and help us become debt-free years sooner.

To begin with, our Manulife One account is based on the appraised value of our home: $310,000.

Our banking before Manulife One

My net monthly income:          

$3,792

 

Sarah’s net monthly income:

$2,599

 

Total net monthly income:

 

$6,391

 

 

$180,000 mortgage @ 6%:

$1630

 

$12,000 car loan @ 6%:

$350

 

$2,600 credit card debt @ 20%:

 $250

 

$6,500 line of credit @ 8%:

 $200

 

Monthly debt repayment:

 

 $2,430

 

 

 

Our other total monthly living expenses: 
(This includes groceries, phone and cable bills, clothing, utilities, recreation and vacations, taxes, insurance and savings, etc.)

$3,575

 

 

Excess cash (income minus expenses):

$386

 

 

 

Our savings account balance:

$8,000

 

Our chequing account balance:

$3,500

 

Total cash:

 

$11,500

Our banking with Manulife One

All debt is consolidated:

$201,100

 

 

 

 

Savings deposited in account:

-$8,000

 

Chequing deposited in account:

-$3,500

 

Total Manulife One debt:

 

$189,600

 

 

 

Total net monthly income:

 

$6,391

 

 

 

Total debt costs:
(Interest only: 31 days @ 5.25%)

$845*

 

Living expenses

$3,589

 

Total expenses

 

$4,434

 

 

 

Excess cash (income minus expenses):

$1,956

 

 

 

*Interest costs become lower as debt is repaid.
             
Before Manulife One, it would have taken us 13.3 years to repay our debts and we would have paid a total of $80,920 in interest.

Thanks to excess cash-flow and the flexibility of our Manulife One account, if we are able to leave the extra cash in the account each month, we could repay our debt in 6.7 years and it could mean a savings of $46,980 in interest costs. That’s our Manulife One number, what’s yours? Try the calculator now!

This case study is for illustrative purposes. The results for the current way ( old way) of banking assume that each current liability will continue to be repaid at the same rate it has been and that no additional lump sum payments are made. A new mortgage 5 Year Rate of 5.85% was used. Assumes immediate renewal with no penalty.

The results for the Manulife One scenario assume the $11,500 in savings and the difference between income and expenses ($386 per month) are used to reduce the borrowings. This illustration assumes no new debt is taken on and all values remain the same throughout the period in question including the Manulife One Base Rate of 5.25% and the monthly administration fee of $14.00.

For the current Manulife One Base Rate, Rates and fees.

The results that you may achieve with Manulife One will differ from Mike and Sarah, and will depend on your specific situation. Mike and Sarah are fictitious.