Thanks Jon for linking to my blog post.I keep seeing TV adds about the Manulife One account.
Does anyone have any experience or advise about this product? It just sounds like switching a conventional mortgage to a secure line of credit.
I can understand that the marketing of these types of mortgages/accounts is appealing, but it seems people sometimes fail to realize that a traditional mortgage has as much flexibility to pay down the debt.according ot CT, I can save 20K in interest and shave 10 years off my mortgage.
Well, anyone within reason. You have to have a pretty high income, a small mortgage, or very low living expenses to be able to pull that off. ;-)Assuming pre-payment priviledges of 20%, anyone could pay off their ENTIRE mortgage in 5 years if they dumped all their cash flow towards the debt.
I have no doubt that all-in-one accounts work. The question is: does it save most people money? I have my doubts since it is possible to get a cheaper mortgage elsewhere and conventional mortgages typically come with generous prepayment privileges.I use M1 and have for years. As a product, it is what it claims to be.
It is essentially a HELOC and we've got access to a large amount of credit in our M1 account, but it doesn't show on our credit report at all. Is this normal for HELOCs? I suppose this is a selling point if you want to double-dip on your home equity.
But isn't the surplus in your cash flow staying within the 'all-in-one' account equivalent to making a top-up payment on a conventional mortgage.remember, you are not required to decrease your cashflow by making extra payments or paying more per month.