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Manulife Improves Its Mortgage Product Line

Manulife entered the mortgage broker market nearly three years ago. So far, their mortgage products have been popular.

Between 2017 and 2018, Manulife Bank led all top lenders year-to-date with 93.3% growth. In the second quarter of 2018, they had 1.9% of the market share, an increase of 80 bps.

Now, they are revamping their mortgage products even more.

In October 2018, Manulife added:

  • One-to-four-year fixed rates for its uninsurable Manulife One (M1).
  • One-year and five-year fixed insurable rates for M1.
  • Automatic readvances for fixed-rate sub-accounts in M1 (available up to 65% LTV in the insurable version).
  • Allowing brokers to have up to five sub-accounts in M1 (two at origination and up to three more after closing on the uninsured version).
  • Ability to transfer into an M1 from another lender.

One of the most anticipated products is the ability to automatically readvance mortgages — a HELOC that automatically creates extra borrowing room on a credit line as borrowers pay down their mortgage. Currently, only Scotiabank, Desjardins, MCAP, and several credit unions offer the service.

Another valuable product is the ability to switch into an M1 from another lender.

This means that borrowers can transfer their existing mortgage to the M1, receive the aforementioned readvanced line of credit, and still get insurable mortgage rates.

Benefits:

  • The one-year and five-year fixed insurable rates makes this a cost-effective option for a readvancable mortgage.
  • These could even compete with variable rate-mortgages as interest rates continue to rise.
  • The uninsurable one-to-four-year fixed mortgages present options for short-term affordable mortgages.

Items to Note:

  • Clients must pay a $16.95 monthly M1 fee ($1,017 over five years) but that grants access to full e-banking and interest offsetting.
  • Clients will have to pay legal fees when transferring into an insurable M1.
  • Buydowns are not available on any M1 portion.

Canadian Mortgage Trends predicts these changes could push Manulife’s broker market share to over 3% next year.

Learn more about Manulife’s mortgage product line at http://manulifebankbrokerhub.ca/en/home/.

Whether you sell a Manulife mortgage, or another product, Purview can help you close the deal with our up-to-date property information. Estimate property value, find comparable sales, review neighbourhood demographics, and much more.

Contact us today. Call 1-855-787-8439 or visit www.purview.ca.

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