New Manulife product consolidates debts, deposits

The Manulife One product
provides a single bank account for
consolidation of mortgage,
chequing and charge card expenses,
and receipt of all deposits
including paycheques. It also
allows a qualified client to
borrow up to 75% of his or her
home’s market value and divide the
debt between fixed and variable
interest rates.

To qualify, a customer must own
a home worth at least $100,000
with debts rolled into the
account exceeding $50,000. The
customer would arrange to have
regular paycheques paid into the
account.

Where a mortgage is transferred
from another institution,
Manulife will pay the real estate
appraisal costs. The client pays
all costs charged by the other
institution.

As an incentive, Manulife is
offering customers a complimentary
American Express Gold Card,
normally costing $130 annually.
Gold Card benefits include a free
copy of Quicken 2000 software.

In a general scenario, a
client’s paycheque would be
transferred directly to the
Manulife One account and deducted
from the outstanding balance, with
interest costs reduced
proportionately. In a later
transaction, the client would use
the account to pay clear the
month’s American Express bill,
which will increase the amount
outstanding and carry
proportionately increased
interest costs.

Company officials concede that
the program has no unique
components, but say that bundling
them together in Manulife One
will mean convenience and cost-
savings. “Whenever you put in an
extra five bucks, ten bucks or your
whole salary, your are basically
reducing your debt that instant,”
said Paul Smith, Manulife’s vice
president, wealth management.