adrian_jaye

ok, wife is looking at going to manulife for there "all in one mortage, bank accouunts"

we dont have any debt to consolidate, but the idea is all your money goes into the account, to pay the mortage , we kinda have a similar thing in the UK.
(I didnt do that)

Idea is you pay your mortage off damn quick.

Does anyone have anything good/bad to say about either this product, this company or similar.

Really DONT wanna make an expensive mistake.

I have money and a growing investment portfolio, I think, with my wifes investments and my money we could pay the house tommorow, but would leave us with no savings, me no job and her on mat leave.

So any financial wizzards can give a yeah or nay

thanxks yall

dc88

What is the point in doing that?

Is there any real tangible benefit to YOU?

bavorak

Neighbour just did this and it works better for him, the whole idea behind it is to have all accounts consolidated into one resulting in less interest paid over the term of your morgage because you don't have funds sitting idle in chequing and savings accounts that honestly don't generate any real interest. So the real benefit is if you have a substantial amount idling in chequing and savings, and they put that against your morgage balance so you only pay interest on the net difference. I think I recal him getting a rate of prime. For him it as a savings of roughly 42K if he chose to carry the mortgage to term. It comes down to making your money work smarter for you, I couldnt find a downside in his plan.

Good Luck, hope this helps.

Kind Regards, David

Graps

I looked into this a couple years back specifically manlife one. Principal sounds good if you don't use the extra credit to continually add debt. What turned me off was when I asked the rep to confirm the rate they would use and how they adjusted the rate in comparison to say a prime rate mortgage who moved with boc rate. The answer I got was well we can adjust it to the market we feel will keep us competitive. When I asked how do I get assurance they wouldn't move higher then bank rates if overall company profit was down and there were no guarantees. Seems shady.

ronnie993tt

Consider paying your mortgage off since it's not tax deductable, and get a huge mortgage loan (line of credit) pre-approved based on the equity in your house to cover the downside risk of getting fired, etc. You won't pay any interest on it unless you drraw on it. You're getting killed on taxes by having a whack in investments while still paying mortgage interest.

Rinty

Adrian:

I suggest you get a referral to a Certified Financial Planner, and have him/her review your portfolio with you. You want to get an independent evaluation of the options available to you and your wife.

ronnie993tt

I've seen a lot of bad advice from commision based CFP's because they don't make any money if you use your investments to pay off your mortgage. Non-deductable debt is a killer and it's usually better to pay off your mortgage before even contributing to an RSP. Get fee, not commision based, professional advice.

Turbodan

I second Ronnie's comment about seeing licensed guys give crap advice and also have seen some good advice (very rare). the important question is : when is your mortgage due? and what type of mortgage; variable or fixed. if variable what is the relation to prime? that is more important than how you organize your bank account. with most mortgages you can pay off 20% per year with no penalty. what Ronnie said about writing off your mortgage is good but requires more bookkeeping and is called the Smith Maneuvre. There is a great mortgage guy on her John (928) not sure his rennlist name but he could help you if you need to renew the mortgage. again the rate is the most important thing here. I am curious of your investment portfolio makeup as I am bearish on the economy as a whole right now especially the states. do you have any precious metals, energies or hard assets like commodities in there?
if you have a line of credit you are better off getting a 5 year variable and save at least1% per year.
feel free to pm me your phone if you want to discuss further off line.

cjn928

I'd be happy to speak on this topic.
Feel free to contact me via PM.

cjn928

"There is a great mortgage guy on her John"
Turbodan are trying to get me into trouble???

Rinty

Yes, I should have mentioned that the CFP should be a fee based independent.

99three

John, does your wife know about this?

cjn928

99three where have you been...?

Radcap

Look into the Smith Manouver, worked(working)great for me and others I know. PM me if you want contacts or details.

Rod,