Cost of Borrowing - Preferred Rate Mortgage and Manulife One
Preferred Rate Mortgage
Annual Percentage Rate (APR) is the total cost of borrowing provided as an annual percentage, which includes our current interest rate and charges such as appraisal costs and legal fees. If there are no charges applicable to a mortgage such as on a transfer of your mortgage to Manulife Bank, then the APR will be as stated above which is our current interest rate. If charges are included in your cost of borrowing as on a new home purchase then the APR will be slightly higher than stated above.
Manulife One
The Manulife One Base Rate is a variable interest rate used to determine the rate applicable to your Manulife One
Main Account and any Variable-Rate Sub-Accounts. Refer to your Operating Agreement or login to your account at manulifeone.ca for additional information on the interest rate specific to your account. The Manulife One Base Rate is set independently of Manulife Bank’s Prime lending rate, and may change without notice.
The Annual Percentage Rate (APR) for Fixed Rate Accounts is set from time to time and is guaranteed for the term selected. Interest is calculated monthly, not in advance. The early termination of a Fixed Rate Account will be subject to an interest penalty. APR is the total cost of borrowing provided as an annual percentage, which includes our current interest rate and charges such as appraisal costs and legal fees. As there are no charges applicable to set up a Fixed Rate Account under a Manulife One account, the APR is as stated above which is our current interest rate.
The Credited Rate is a current variable interest rate that fluctuates and is not guaranteed. It is applied to any funds in the Main Account when the Main Account is in a positive position and is paid to you. This interest is calculated on the daily closing balance and paid monthly.
Interest rates
- Click here for current rates.
- The interest rate available on first-position Manulife One accounts is also available as an introductory rate for second-position Manulife one accounts. If your first position mortgage renews and you keep your Manulife One account in second position then:
- Your maximum borrowing limit will not increase and
- A higher interest rate will be charged. Call 1-877-765-2265 for details.
Interest calculations -- The interest is compounded monthly, not semi-annually. However it doesn't really compound because the interest must be paid off each month. To do an apples-to-apples comparison of effective interest rates,
you should add about 0.10% to 0.15% (10 to 15 Basis Points or BPS) to the posted Manulife One rates. For example,
8% compounded semi-annually, not in advance would have an effective rate of 8.16% at year-end, whereas, 8% compounded monthly, not in advance, would have an effective rate of 8.30% - a difference of 0.14% (or 14 BPS).
Costs incurred in opening a Manulife One account:
Legal fees -- Currently, Manulife Bank is covering legal fees to set up your mortgage, provided you use the Bank's title insurers program (available on switches only - not for home purchases.) Actual legal fees relating to home purchases may vary by transaction and depends individual circumstances and on the lawyer used.
Cancellation fees may be charged by your current institution.
Account fees -- The current monthly administration fee for a Manulife One account is $14 per month.
There are service charges for special transactions that are not included in the monthly fee.
Fees associated with closing a Manulife One account -- Upon discharge of a mortgage associated with a Manulife One account, a discharge preparation fee applies. At August 15, 2010, this fee is $250 and is subject to change and provincial regulations.
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