Manulife One Discovery Centre

Be debt-free sooner

Most of us dream of the day we become debt-free—we think of it as a time of reduced stress, freedom to travel or even an important step towards retirement. But for many Canadians, being debt-free is a long way off. With Manulife One it doesn’t have to be.

Make all your money work for you, all the time

The secret sauce for Manulife One—what makes it different from traditional mortgages—is that it allows you to use all of your money to reduce your debt and save you interest. 

Scroll left Scroll right
Pay less interest Budget for success Watch a video Let's review

3 key steps to becoming debt-free sooner

Let’s look at the 3 key steps you can take to pay less interest and become debt-free sooner with Manulife One:

Step 1:
Automatically deposit your income

Manulife One works best when you use the Main Account as your everyday bank account. When you deposit your income into the Main Account, your debt is immediately reduced by the full amount of your income. As you buy the things you need and pay your bills throughout the month, your debt will increase. But as long as your income is greater than your expenses, your extra money acts like an automatic prepayment on your mortgage— keeping your debt lower and saving you interest.

Step 2:
Deposit money sitting in other bank accounts

You can deposit as much money as you want into your Main Account, at any time, without a prepayment penalty. If you have money sitting in a rainy-day savings account, you should move it into your Main Account. This will immediately reduce your debt, and almost certainly save you more in interest than you would have earned on your savings. And, you always have access to that money, and more (up to your borrowing limit), if a need arises.

Step 3:
Spend less than you earn

While your income may not exceed your expenses every month, it’s important that it does so over the long term. This is because when your extra income stays in your Main Account, it reduces your debt and saves you interest. The more extra money you can leave in your account, the sooner you’ll be debt-free. It's a game changer.

Want to pay less interest?

The interest on your Main Account is calculated daily. When you deposit money into your account, such as your income, your debt is immediately reduced. And less debt means less interest. It’s that simple.

    •  

Budgeting for success with Manulife One

There are a few easy things you can do to make sure you’re paying down your debt and reaching your financial goals:

Use a spreadsheet or budgeting tool

Use a spreadsheet or budgeting tool to keep track of your income and expenses each month. This will allow you to understand where your money is going and identify areas where you may be able to spend less. 

Conduct an annual review of your budget

Conduct an annual review of your budget – either on your own or with your advisor. You can also find a graph of your debt repayment progress on your monthly statement (PDF). Have you paid down your Main Account as much as you wanted to this year? Do you need to adjust your spending? If your balance isn’t where you want it to be, take another look at your budget.

Save before you spend

Get in the habit of saving money for major purchases, rather than buying on credit and then paying it off later. For example, rather than buying a big screen TV on credit, save for the purchase and enjoy your new TV knowing it’s already paid for.

    •  

How to be debt-free sooner

When you buy a home, mortgage-freedom can often seem like a distant destination. But what if you could get there faster and save thousands in interest along the way? Here’s how Manulife One can help you reach mortgage freedom sooner.

How to pay off your mortgage faster - Manulife One from Manulife Bank

Download a transcript (PDF)

    •  

Let’s review

  • The interest on the Main Account is calculated daily and charged monthly. Every deposit you make into the Main Account reduces your debt, helping you pay less interest.
  • Paying less interest means that more of your money goes toward reducing your debt – which can help you pay off your mortgage faster. 
  • There are some important steps you can take to pay less interest and repay your debt sooner with Manulife One:
  1. Automatically deposit your income
  2. Deposit money sitting in other bank accounts
  3. Spend less than you earn
  • Budgeting—understanding how much money is coming in and going out—will set you up for success with Manulife One and help you reach your financial goals.
    •  


Next steps

We invite you to talk to your advisor as part of your overall financial plan or your mortgage broker to find out more about Manulife One. If you don’t work with an advisor or broker, one of our mortgage specialists would be happy to help.

Discover more

See all Discovery Centre articles

Manulife One is offered by Manulife Bank of Canada.

Manulife, Manulife Bank & Stylized M Design, Stylized M Design and Manulife One are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.