Manulife One Client Guide 1
Welcome to Manulife Bank... Manulife One is as much an innovative approach to managing your finances as it is a mortgage. This guide will assist you in getting the most out of the features of this extraordinary banking solution. While you won t need to read this entire guide today, we ask you to concentrate on the sections entitled Getting started (Section 1, pages 6 to 10) and Using your account (Section 2, pages 12 to 23). The Quick Starter Guide (included in your kit) highlights exactly what you need to know to get your account up and running in just a few easy steps. Need help with your account? Detailed information about all your account options is available in this guide but, if you have questions, you can visit manulifebank.ca. If you prefer personal assistance, you can contact a Manulife Bank Service Representative at 1-877-765-2265 from Monday to Friday, 8 a.m. to 8 p.m. across all times zones and on Saturday, 9 a.m. to 5 p.m., Eastern Standard Time. 2
This guide includes: Need help with your account? 2 What happens each month 4 About Manulife One 5 Section 1: Getting started 6 Activate your Access Card 7 Deposit your regular income 8 Repay your other loans 8 Set up bill payments and pre-authorized payments 9 Transfer balances from other deposit accounts 9 Creditor s Group Insurance applications 10 Section 2: Using your account 12 Online banking 12 Automated telephone banking 12 Making deposits 13 Making withdrawals 18 Manulife One statements 22 Lost or stolen card 22 Foreign funds 22 Section 3: Sub-accounts 24 Tracking sub-accounts 24 Term sub-accounts 25 When your term ends 29 Fixed interest rate guarantees 29 Section 4: When your debt is gone 30 Section 5: Rates and fees 32 Fee changes 32 Monthly fee 32 Exceeding your borrowing limit 32 Discharge fee 32 Interest rates 33 Section 6: Protecting your account 34 Key benefits 34 More information 34 Section 7: Changes to your account 35 What happens if I move? 35 Second position accounts (if applicable) 37 Increasing your account limit 37 Decreasing your account limit 38 Additional mortgage financing 38 3
What happens each month This describes how the Manulife One account functions on a monthly basis. Direct deposit Cheques, bill payments, pre-authorized payments ABM deposit INCOME & SAVINGS EXPENSES ABM withdrawals Mobile deposit LOWERS DEBT RAISES DEBT Debit purchases Interac e-transfers into account RBC Royal Bank deposit slips Interac e-transfers out of account Trade-mark of Interac Inc. Used under license. 4
About Manulife One Manulife One is an innovative, all-in-one account that allows you to combine your mortgage, personal loans and lines of credit with your income and short-term savings. It can save you interest costs and give you more control over your finances. What happens each month Money flows in You can deposit money into the account in a number of ways: Have your paycheque automatically deposited. Make deposits at select Automated Bank Machines (ABMs). Mail cheques payable to yourself to Manulife Bank. Transfer funds from another account. Make deposits with Royal Bank tellers. Make deposits using mobile banking. Every deposit that you make into the account reduces your debt, saving you interest costs until you need to withdraw funds again to pay for your monthly living expenses, up to your borrowing limit. Each month, you should deposit sufficient funds to the account to cover your total monthly interest and administration fee. An easy way to do this is to simply have your income directly deposited to your account, assuming your income exceeds these costs. Money flows out You can access the money from your account in a number of ways to pay for your day-to-day expenses. There are a number of ways to withdraw money from your account: Make a withdrawal from an ABM. Write a cheque. Make a debit card purchase. Make a pre-authorized payment. Transfer funds to another account. For more information about withdrawing money from your account, turn to page 18. At the end of the month Each day, an interest* charge or credit is calculated on the closing balance, depending on whether your account has a negative or positive balance at the end of that day. On the last day of each month, the net amount of interest is either debited from or credited to your account. Your monthly administration fee is also automatically debited from the account. Your monthly statement is mailed to your home address. You can also view your statement online at manulifebank.ca. For more information on making deposits to your account, turn to page 13. *Variable interest rates are calculated on the daily closing balances and posted monthly. Fixed rates are guaranteed for the term selected. Interest is compounded semi-annually and charged monthly, not in advance. Debt in any amortizing variable rate sub-account is charged the Manulife One Base rate plus or minus an adjustment factor and is calculated on the daily closing balance and charged at month-end. 5
Section 1 : Getting started Complete the account activation process Before you can use your Manulife One account, you ll need to complete the activation process. i. You will receive several mailings from Manulife Bank: Copies of your legal documents. Access Card(s)* for electronic banking transactions, ABM access and in-store purchases. A personal identification number (PIN) for each Access Card. Personalized cheques*. Royal Bank deposit slips* (if requested). ii. A representative acting on behalf of Manulife Bank will contact you to complete the legal documentation. iii. You will receive a Welcome call from Manulife Bank, letting you know that your account has been activated. If you need any assistance with any of these steps or want to find out the status of your account activation, you may call Manulife Bank at 1-877-765-2265. Once you ve been notified that your account is active, follow the steps below to get started with your Manulife One account. ACTIVATION PROCESS Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Activate your Access Card Deposit your regular income Repay your other loans Set up bill payments and pre-authorized payments Transfer balances from other deposit accounts Complete Creditor s Group Insurance application *Your Access Card, cheques and deposit slips cannot be used until the account is active. 6
Step 1 Activate your Access Card Your Access Card, along with your Internet and telephone passwords, is your key to self-serve banking. The card allows you to make ABM withdrawals and debit card purchases at retailers worldwide. Your Access Card number allows you to make account inquiries and transactions online at manulifebank.ca and through telephone banking at 1-877-765-2265. How do I activate my Access Card? Your Access Card and personal identification number (PIN) will be sent to you in separate mailings for your security. As soon as you receive your Access Card, call us to activate your card and to create your Internet and telephone banking password(s). For security reasons, we will ask you to provide two pieces of personal information (e.g. your postal code and birth date) in addition to the Access Card number. TIPS: Your PIN number is the four digit number we mailed to you. Please memorize this number. It is used for ABM and retail purchase transactions. For your own protection, do not write down your PIN or keep it near your Access Card. If you wish to change your Access Card PIN, you can do so at any Manulife Bank automated banking machine (ABM) or at an ABM that is part of THE EXCHANGE Network of ABMs across Canada. See page 15 for more information on THE EXCHANGE Network. Your PIN is different from your Internet and telephone banking password(s). Changing your PIN does not affect your password(s). When you receive your Access Card, keep the letter it comes with, as it includes your Access Card number. Being able to reference this number in the event that your card is lost or stolen will expedite the cancellation process. 7
Step 2 Deposit your regular income Every deposit made into the account immediately reduces your debt and, therefore, your interest cost*. By depositing your income into your Manulife One account, you can ensure that every dollar you earn immediately goes to work saving you interest. How do I have my income deposited into the account? To have your regular income deposited into your Manulife One account, simply contact the person or department at your place of employment responsible for payroll. They will require a void cheque from your Manulife One account and may ask you to complete a payroll request or change form. You can also have investment income deposited by contacting the appropriate financial institution and having them forward the income into your Manulife One account. Step 3 Repay your other loans Your Manulife One account allows you to consolidate all of your debts at a competitive, low interest rate(s). By repaying your higher-cost debt from your Manulife One account, you could reduce your interest costs and reduce the amount of time it takes for you to become debt-free. How do I repay my other loans? As soon as your Manulife One account is active, repay and close any remaining loans or lines of credit, starting with the highest interest rate loans, such as credit cards. Normally these loans can be repaid by cheque or online fund transfers. TIPS: Even if there is no outstanding balance on a line of credit or credit card, accounts that remain open may impact your credit bureau score. It usually makes sense to keep one or two credit cards open for day-to-day spending. Using your credit card for purchases throughout the month and then paying off the balance before the bill is due helps your income work harder for you. Every day that even a dollar of your income stays in your account there is less debt so you pay less interest*. *Note: If your monthly expenses exceed your monthly deposits, your interest cost will not be lowered. 8
Step 4 Set up bill payments and pre-authorized payments Using Manulife One as your everyday account makes it easy to keep track of your expenses and simplifies your banking. How do I set up automatic transactions? To set up your automatic pre-authorized payments, contact the appropriate company and supply them with a void cheque from your Manulife One account. To set up your bill profile, you can either logon to manulifebank.ca and Add a payee or contact a Manulife Bank Service Representative at 1-877-765-2265. For detailed instructions on setting up your bill payment profile, please refer to page 17. TIPS: Don t forget to use the checklist entitled Make the most of your Manulife One account that is included with this guide to assist you in moving your banking into your new Manulife One account. Step 5 Transfer balances from other deposit accounts Once you ve moved your automated transactions to your Manulife One account, it s time to transfer the balances from your other bank accounts. By using Manulife One as your only bank account, you ll eliminate any administrative charges you re currently paying to maintain these external accounts and enjoy the simplicity of Manulife One as your sole source of banking activity. Moving your chequing and short-term savings accounts into your Manulife One account could reduce your debt and save interest costs. Because Manulife One is your everyday account, you can access that money at any time, up to your borrowing limit. How do I set up fund transfers? To set up external transfers with an account(s) you hold in your name at another Canadian financial institution, you will need to complete the Funds Transfer Agreement that is included in this welcome package. To set up the Funds Transfer Agreement, you will need to: 1) Complete and submit a Funds Transfer Agreement. 2) Attach a void personalized cheque for that external account to the form. 9
Once Manulife Bank receives your Funds Transfer Agreement and void cheque, the account will be added to your Transfer funds list and you will be able to use this option through our Internet and telephone banking services. Online, this option is available under Login > Transfer funds. How do I transfer balances from other accounts? In most cases, you can simply write a cheque from your old account to your Manulife One account or request a funds transfer from your existing bank. TIPS: When redirecting your income, moving account balances and changing your pre-authorized payments from existing accounts, make sure that you: Leave enough money in existing accounts to cover any cheques that may not have been cashed or scheduled payments that may come out before the change-over is made. Wait to close an existing account until you are certain that all deposits, cheques and bill payments going into and out of that account have been moved to your Manulife One account. What if I want to keep another account open? Manulife One may be the only bank account you ll ever need. However, if you still value traditional branch banking, simply keep your current bank account and use Manulife Bank s funds transfer capability to transfer money to and from your Manulife One account as needed. But remember, Manulife One works best when you deposit all of your income into the account. Step 6 Complete Creditor s Group Insurance application You may have already applied for Manulife Bank s Creditor s Group Insurance program when you applied for Manulife One. If you haven t yet applied but would like to, please refer to page 34 of this guide, contact your banking representative or contact Manulife at 1-866-388-7095. 10
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Section 2 : Using your account Online banking Your Access number (the number on your Access Card) gives you self-serve control of your all-in-one bank account. To view your account online, go to manulifebank.ca and select Sign in. When prompted, enter your Access number and your Internet password (which you will have created when you called to activate your Access Card). Once you have logged in, you ll be able to view a summary of your account information and recent transactions. The Internet banking section of the website enables you to: View the current interest rates applicable to your account. Set up and pay bills. Send and receive money using Interac e-transfer. Transfer funds. Check your account balance and borrowing limit. Review recent account activity. Change your password. Order cheques (generally delivered within two weeks). Print transaction-only statements. Download your account information to third party accounting software. TIPS: We recommend that, for security purposes, you change your passwords at least once every 90 days. When you are done, please ensure that you logout of the Bank s site and completely sign off of the Internet. You can obtain current fees without logging into Internet Banking. Go to manulifebank.ca > Services and fees schedule. Automated telephone banking The telephone banking system allows you to access your account over the phone. Once you have set up the appropriate funds transfers and billing companies, you can: Pay a bill (rather than writing cheques or setting up automatic pre-authorized payments). Listen to your bill profile. Transfer funds. Check your account balance and borrowing limit. Review recent account activity. Check current interest rates. Change your password. 12
Making deposits There are a few ways to deposit money into your Manulife One account. 1. Direct deposit Have your income automatically deposited into your account. 2. Fund transfers Transfer funds from another Canadian financial institution. 3. Cheques Mail cheques to: Manulife Bank, 500 King St. N, PO BOX 1602, Waterloo, ON N2J 4C6 4. ABMs Make deposits at almost all ABMs displaying THE EXCHANGE Network logo. 5. Royal Bank deposit slips Make deposits at any branch of the Royal Bank with bank tellers. (Note: Special deposit slips must be presented to a teller. Please do not use the night deposit box.) 6. Bill payments Set up your Manulife One account as a bill at another financial institution to make regular deposits. 7. Interac e-transfers Receive money using Interac e-transfer. 13
1. Direct deposit The easiest way to make deposits into your account is to have your income automatically deposited each time you get paid. To set this up, you will need to contact the HR or payroll department at your place of employment and supply them with a void cheque from your Manulife One account. 2. Funds transfers If you decide to keep a bank account open at another financial institution, funds transfers can act as a deposit to or a withdrawal from your Manulife One account. You can transfer funds online at manulifebank.ca or over the telephone once your signed Funds Transfer Agreement has been received and processed by Manulife Bank. Any bill payments and funds transfers available via Internet banking are simultaneously available through telephone banking. For information on how to set up a funds transfer agreement, please refer to page 9. Important considerations when making transfers Personal account restrictions: Due to rules set by the Canadian Payment Association, transfers can only be made from personal accounts that are in the same name(s) as your Manulife One account. Processing time for external transfers: To allow for processing time, external transfers must be future-dated by a minimum of one business day. Please note that the time it takes to complete a transfer is dependant on the processing times of the external financial institution. When transferring funds into your account, the deposit is subject to a hold. Please refer to your General Terms for our hold funds policy or contact us for further details. Future-dated and recurring transfers: Transfers can be future-dated or set to run on a recurring basis. Once entered, these transactions can be viewed on the Internet banking Future transactions page. Note: No Funds Transfer Agreement is required for transfers between Manulife Bank accounts since all of your Manulife Bank accounts are immediately accessible when you login to Internet banking. 14
3. Depositing cheques You can send us cheques for deposit into your account. Simply write your Manulife One account number on the back of the cheque, make it payable to yourself and send it in using a Manulife One deposit envelope. You can contact a Manulife Bank Service Representative at 1-877-765-2265 for envelopes when needed. For your security, please do not: Sign the back of the cheque. Send cash through the mail. 4. ABM You can deposit cheques and cash (coins are not accepted) at any ABM in Canada that is part of THE EXCHANGE Network. What is THE EXCHANGE Network? Manulife Bank is a member of THE EXCHANGE Network*. This is a network of ABMs across Canada that do not charge convenience fees to Manulife One account holders. There are now more than 3,300 THE EXCHANGE Network ABMs across Canada. Using your Access Card, you can make deposits to your Manulife One account at almost all ABMs in Canada which display this logo. To help you find THE EXCHANGE ABMs near you an ABM locator is accessible at manulifebank.ca. Important note about convenience fees Your monthly fee covers the standard costs of all in-canada use of your Access Card. It does not cover user or convenience fees, which are charged at ABMs operated by independent owners and other Banks that are not part of THE EXCHANGE Network. Some retailers may also charge a fee. When traveling abroad, your Access Card will be accepted at vendors displaying the ACCEL logo in the U.S. or the Maestro logo internationally. Out-of-country Access Card transactions are subject to fees. For more information about fees and services not covered by your monthly administration fee, visit manulifebank.ca > Services and fee schedule. *Using THE EXCHANGE ABMs ensures you do not incur additional fees. 15
5. Royal Bank deposit slips To make deposits more convenient for you, we ve made special arrangements that allow you to make deposits with a bank teller only at any branch of the Royal Bank. How do I make a deposit at the Royal Bank? You will receive personalized deposit slips from the Royal Bank within four to six weeks after your Manulife One account has been activated. These personalized deposit slips are encoded with Manulife Bank information and your personal account information. These slips can only be used with a Royal Bank teller. They cannot be used to set up automatic payments, direct deposits, etc. To use your Royal Bank deposit slips, simply: 1) Complete the date and deposit amount on the deposit slip. 2) Take it and your deposit(s) to a teller only at any branch of the Royal Bank. Do not use a night deposit box. Please allow a minimum of two business days for delivery and processing of any deposits made at a Royal Bank teller. Even though it may take a few days to process your deposit, your account will be credited as of the date you submitted your deposit. All deposits made at a Royal Bank branch after 3 p.m. EST will be credited to your account the following business day. Even if the teller refers to your deposit as a business transaction, don t worry. Since the deposit is encoded with your personal information, your deposit will go into your Manulife One account regardless of how Royal Bank processes the deposit at their end. Does this mean I have an account at the Royal Bank? No. You do not have an account at the Royal Bank (nor are the tellers familiar with the Manulife One account). Deposits cannot be made through a Royal Bank ABM or a night deposit box, only in-person with a Royal Bank teller. TIPS: Since this arrangement has been made using our Manulife Bank account, you can use any Royal Bank teller at the branch including the line designated for business transactions. 16
6. Setting up Manulife One as a bill payment (for deposit) Some Manulife One customers maintain an account with a traditional bank for the purpose of cashing cheques, changing coins, branch banking, etc. If you have done this, you may be able to set up your Manulife One account as a bill with that institution. Then, you can deposit cash or cheques into that account and use that institution s bill payment options phone, Internet, sometimes ABMs to pay your Manulife One account, thereby transferring money into your account. 7. Interac e-transfer An Interac e-transfer is the ability to send and receive money online quickly, easily and securely to and from anyone with an email address and a personal bank account at a Canadian financial institution. Commonly referred to as email money transfers, Interac e-transfer can be a great alternative to cash or cheques. You can send money to your loved ones, pay fees for a team or club or contribute to a group gift, to name a few uses. How long it takes When you send money from your Manulife Bank account using an Interac e-transfer, the money is transferred out of your account immediately. When you re receiving an Interac e-transfer, it will be available in your online account immediately and then you can access it through an ABM or debit transaction the next business day. Security Your money never actually travels by email or text message. Those are only the methods used to notify the recipient and to provide instructions on how to deposit the money. The money always resides safely at a financial institution and is transferred through existing payment networks that financial institutions have used for years to settle cheques, bank machine deposits and withdrawals. Important information regarding deposits to your account Remember to allow time for deposit processing Please remember to allow time (at least two business days) for delivery and processing of any ABM, Royal Bank or funds transfers into your Manulife One account. Even though it may take a few days to process your deposit, your account will be credited as of the date you submitted your deposit. Cheques mailed to Manulife Bank will be credited to your account effective the day they arrive. When depositing cheques or transferring funds into your account, the deposit is subject to a hold. Please refer to your General Terms for our hold funds policy or contact us for further details. 17
Making withdrawals Your Manulife One account gives you easy access to your money. 1. ABMs Withdraw money at any ABM*. 2. Cheques Write a cheque for purchases. 3. Fund transfers Transfer funds to another financial institution. 4. Interac e-transfer Send money using Interac e-transfer. 5. Pre-authorized bill payments Set up pre-authorized payments. 6. Bill payments Use Internet and telephone banking to pay bills. 7. Debit and cash back Make direct payment purchases at retailers. Use the cash back option at retail locations, where available. *Using THE EXCHANGE ABMs ensures you do not incur additional fees. 18
1. ABMs Your Access Card allows you to withdraw money at any THE EXCHANGE, Interac, Cirrus or Maestro ABM in the world. Note that some bank machines charge convenience fees to people who are not their clients. There are a couple of ways to avoid these fees: Use ABMs that are members of THE EXCHANGE Network. See page 15 in the Deposit section to find more information on THE EXCHANGE Network. Certain retailers, such as grocery stores, allow you to ask for cash back without charge when you pay by debit card. 2. Personalized cheques Your Manulife One cheques* can be used to make purchases or to create void cheques for setting up automatic payments. We will provide an initial supply of free personalized cheques which you will receive in a separate mailing within two weeks after your account is opened. To order additional cheques, you have three options: 1) Use the Order cheques option from the Internet banking section of our website. 2) View cheque options at dhltd.com and then contact the manufacturer (Davis + Henderson) directly at 1-877-448-1294. 3) Order cheques using our telephone banking service. A Manulife Bank Service Representative can advise you of the cost. Please allow two weeks for printing and delivery. 3. Fund transfers If you decide to keep bank accounts open at other financial institutions, funds transfers can act as a deposit to or a withdrawal from your Manulife One account. You can transfer funds online at manulifebank.ca or over the telephone once your signed Funds Transfer Agreement has been received and processed by Manulife Bank. For more information on fund transfers, please refer to page 9. Please ensure your name(s), address, telephone and account numbers are correct. *Remember, you cannot use your Manulife One cheques until your account has been activated. The Cirrus Brand Mark is a registered trademark of MasterCard International Incorporated. 19
4. Interac e-transfer Another option for making withdrawals is sending an Interac e-transfer. This is a secure way of transferring money using online banking from your bank account to another person s bank account at a Canadian financial institution. A great alternative to taking out cash or writing a cheque, Interac e-transfers are quick, secure and easy to do. To get started, sign in to your online banking at manulifebank.ca and click on Get Started under the Interac e-transfer menu on the left. You will need to register, set up your profile and add your recipients. A step-by-step demonstration is posted in the online Help menu to guide you through the process. 5. Pre-authorized bill payments By having your bills paid automatically each month, you can simplify your banking and ensure you never miss a payment. How do I set up an automatic bill payment? To set up automatic payments from your Manulife One account, contact the billing company. They will require your account information likely a void cheque from your Manulife One account and may ask you to complete a request or change form. It s important to review your Manulife One monthly statement to ensure all pre-authorized payments have been properly reflected in your account. 6. One-time bill payments You can pay bills directly from your account at no extra cost. All transactions are included in your monthly account fee. You can set up a bill payment vendor as well as make immediate, future-dated or recurring bill payments through Internet banking. Telephone banking allows you to make immediate bill payments. How do I set up a bill payment from my Manulife One account? Set up your bill payment service in one of the following two ways: 1) Gather together all the bills you would like to pay then login to Internet banking to Add a payee to your personalized bill payment list. If a company is not listed, contact a Manulife Bank Service Representative 1-877-765-2265 to see if it can be added or; 2) Gather together all the bills you would like to pay and call us at 1-877-765-2265. A Manulife Bank Service Representative will update your file to include your bill payment details. When you have selected one of the two options above, repeat this process for each bill you wish to set up on the payment system. These bills will also be added automatically to your Internet or telephone banking services in the order that you entered them on the website. 20
TIPS: Be sure to have a recent statement for account reference and proper name of the company. There are thousands of companies on Manulife Bank s bill payment system some with very similar names. How do I pay a bill online? Login to Internet banking and select Pay Bills. Select the bill(s) you wish to pay, input the amount and the date you want the transaction to be completed. How do I pay a bill over the phone? To pay a bill using telephone banking, select the Pay bills, transfer funds, and get account transactions option from the main menu. Then follow the prompts. For example the system will say your bill name, the last four digits of your bill s account number and a two-digit identifier code (e.g. For Phone Company 1234 press 01 ). Remember to allow time for Internet and telephone bill payments Some institutions take two business days to acknowledge receipt of your bill payment. To avoid making a late payment, please ensure you submit payment at least three business days prior to the due date stated on the bill. TIPS: Pre-authorized payments make it easier to manage your banking, so the more pre-authorized payments you create, the easier your banking becomes. When creating future-dated transactions, ensure that you have sufficient funds in your Main Account to cover these costs on the payment date. If there aren t enough funds available on the date selected, further future-dated transactions will not occur. 7. Debit purchases and cash back Your Access Card allows you to make direct payment (debit) purchases at retailers worldwide. All purchases made in Canada are covered by your monthly fee (for fees outside of Canada, visit manulifebank.ca). A debit purchase may also provide you with an easy opportunity to access cash without convenience fees if there isn t an ABM that is part of THE EXCHANGE Network nearby. Some retailers, such as grocery stores, will allow you to request cash back without charge when making a debit purchase. 21
Manulife One statements Each month, you ll receive a comprehensive statement for your Manulife One account. This statement is designed to help you easily manage your account according to your financial plan because you can clearly see how you are progressing toward paying off your debts. If you don t want to wait for your statement by mail, a transaction-only version of your account statement is available through the Internet banking > Account balance section of the website. You can use the date parameters of your choice, as far back as two years from the current date. TIPS: Please be sure to carefully review your statement each month. If you discover any errors or discrepancies with your statement, you have 30 days to contact Manulife Bank. For a detailed animated overview of the statement and its many features, you may visit manulifebank.ca. Lost or stolen card If your Access Card is lost or stolen or your PIN becomes known by someone else, you must notify us immediately at 1-877-765-2265. We will cancel your existing card and send you a new Access Card and PIN. Foreign funds To buy foreign funds, we recommend you use the services of a currency exchange office. When travelling, you may find that using your Access Card may be safer and more economical than carrying cash. Depositing foreign funds While Manulife One is a Canadian funds account, we can accept cheques written in U.S. dollars from accounts with Canadian financial institutions; however, they are subject to a foreign funds handling charge. To deposit the cheque, you must mail in your cheque, ensuring that you identify your account number and that your deposit is clearly marked as being written in U.S. currency. For other currencies, please contact our Customer Service Centre at 1-877-765-2265 for additional information. Remember to allow several days for processing When a cheque written in foreign funds is sent directly to us, it must first be cleared by the organization that provides us with cheque clearing services and then credited to Manulife Bank in Canadian dollars, so it will not be credited immediately to your account. We are unable to guarantee processing times because we do not control the clearing process. 22
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Section 3 : Sub-accounts While Manulife One allows you to bring most major components of your banking into a single account, you may still wish to track different portions of your debt separately. Sub-accounts allow you to do so, while still providing the simplicity of all of your borrowings within your Manulife One account. Manulife One gives you the flexibility to divide your borrowings between up to 15 tracking sub-accounts at the same variable rate as the Main Account and/or up to 5 term sub-accounts with a specific amortization period(s). You ll be able to view your sub-account balances and transactions online and on your monthly statement. Tracking sub-accounts A tracking sub-account allows you to track a portion of your debt separately at the same low variable interest rate as your Main Account. Some common uses for tracking sub-accounts are: Investment loans track interest on investment-related debt for tax reporting purposes. 1 Vehicle debt track the repayment of debt related to the purchase of a vehicle. Family loans keep track of debt and interest owed by family members. Set up To set up a tracking sub-account, login to your account at manulifebank.ca. Select Open Sub-accounts from the menu on the left. Read each screen and follow the prompts to set up a tracking sub-account for yourself online. You can also watch a demonstration on manulifebank.ca that will show you how to set up your sub-account step by step. If you have any questions, you can simply call 1-877-765-2265 and speak with a Manulife Bank Service Representative. No additional documentation is required. 1 Borrowing to invest may not be appropriate for everyone. You should be fully aware of the risks and benefits associated with leveraged borrowing since losses as well as gains may be magnified. Preferred candidates are those willing to invest for the long term and not averse to increased risk. You should be aware that this strategy may have a higher risk as your home is offered as security for the loan and you will be required to make payments regardless of the performance of your investment. The value of your investment will vary and is not guaranteed, however you must meet your loan and income tax obligations. The dealer and advisor are responsible for determining the appropriateness of investments for their clients and informing them of the risks associated with borrowing to invest. Tax-deductibility of loan interest depends on a number of factors, with the Income Tax Act providing the framework for determining tax-deductibility. Clients should consult their own tax and legal advisors with respect to their particular circumstance. 24
Minimums and maximums A tracking sub-account can be opened with as little as $1. If you wish, you may allocate all of your total borrowings from your Main Account to tracking sub-accounts. You may have up to 15 tracking sub-accounts. Sub-account transactions One-time or recurring transfers between your Main Account and any tracking sub-accounts can be done through Internet or telephone banking services. Login to your account and go to the Transfer funds section or contact a Manulife Bank Service Representative at 1-877-765-2265. Repayment of tracking sub-account(s) Interest on your tracking sub-account is charged directly to your Main Account each month. You may set up your sub-account payments as: Interest-only payments from your Main Account, or Principal and interest payments from your Main Account (your sub-account balance will reflect these principal payments on your monthly statement). You can repay any amount at any time including the full balance of a tracking sub-account with no fees or penalties. Term sub-accounts A term sub-account is like having a traditional mortgage within your Manulife One account. Term sub-accounts can be used to divide and separately lock in debt with a defined amortization period (the total time it would take to pay-off the sub-account). Term sub-accounts help you maintain a disciplined payment schedule and ensure you reduce your debt over time. With a term sub-account, you can choose fixed or variable rates. Note: a term sub-account is not available for second position mortgages (e.g. if you have part of your mortgage with another institution). 25
Set up To set up a term sub-account, login to your account at manulifebank.ca. Select Open Sub-accounts from the menu on the left. Read each screen and follow the prompts to begin the process of opening a term sub-account for yourself online. After selecting the Term Options, the amortization period and whether or not you would like the payments to reduce the overall Manulife One borrowing limit, you can calculate a monthly payment that suits you and print your documentation. All account holders will need to sign the documents and send them into Manulife Bank by mail or fax. You can watch a demonstration that will show you how to set up your sub-account step by step. Go to manulifebank.ca and you ll find it in the menu Banking with us under Getting started. If you have any questions, you can call 1-877-765-2265 and speak with a Manulife Bank Service Representative. Minimums and maximums A term sub-account can be opened with a minimum of $5,000. If you wish, you may allocate all of your total debt from your Main Account to a term sub-account(s). You may have up to 5 term sub-accounts. The documentation will specify the terms of repayment including, in the case of a closed term, maximum additional annual payments permitted and penalties on payments that exceed the annual additional payment maximum. Early payout of a closed fixed rate sub-account may result in an interest rate penalty (the higher of three months interest of IRD*). Types FIXED Open: 1-year Closed: 6 months 4-year 1-year 5-year 2-year 7-year 3-year 10-year VARIABLE 5-year *Interest Rate Differential (IRD): a penalty that may apply if you prepay more of your mortgage principal than your prepayment privileges permit. It s the difference between your mortgage rate and the rate of a mortgage that is closest to the remainder of your term, multiplied by the outstanding balance of your mortgage for the time that is left on your term. It is calculated on the amount of principal being prepaid. 26
Repayment of term sub-accounts Principal and interest payments for your term sub-account(s) are made from your Main Account on the last day of every month. Interest paid on the sub-account(s) is tracked separately online and on your monthly statement. Unlike tracking sub-accounts, term sub-accounts have a principal and interest payment based on the type and amortization schedule you choose. If there are insufficient funds in your Main Account to cover this payment, the principal and interest costs will remain in the sub-account and an additional fee may be levied against your account. Variable rate sub-accounts For variable rate term sub-accounts, monthly fixed principal and variable interest payments will be charged to your Main Account. You can repay any principal amount including the entire balance at any time without penalty and when your debt is paid, the sub-account closes. Fixed-rate sub-accounts You can save interest and pay down your sub-account faster. A lump-sum prepayment up to 20% of the initial balance can be made each year to a closed fixed rate sub-account. If you exceed the annual maximum repayment amount outlined in your sub-account loan documentation, fees will apply. Early payout of the fixed rate sub-account may result in an interest rate penalty (the higher of three months interest or IRD*). You may not use any unused prepayment privilege to reduce any prepayment charge if you prepay the sub-account in full. To make additional fixed rate sub-account payments, speak with a Manulife Bank Service Representative. For the one-year open fixed rate sub-account term you can repay any principal amount including the entire balance at anytime without penalty. Note: Scheduled principal and/or interest payments from sub-accounts are charged to the Main Account monthly. However, they are actually repaid only if your deposits (minus expenses and Main Account interest) are sufficient to cover these payments. If not, you re only shifting borrowings from the sub-account to the Main Account. *Interest Rate Differential (IRD): a penalty that may apply if you prepay more of your mortgage principal than your prepayment privileges permit. It s the difference between your mortgage rate and the rate of a mortgage that is closest to the remainder of your term, multiplied by the outstanding balance of your mortgage for the time that is left on your term. It is calculated on the amount of principal being prepaid. 27
Flexibility and structure If your account has a credit limit between 65% and 80% of the value of your home, the amount above 65% must be allocated to a term sub-account in which the credit limit of your overall account decreases by the amount of your monthly principal payment. Your credit limit will decline monthly at the same time the regular sub-account payment is made as well as when any lump-sum principal payment is made. For amounts under 65% of the value of your home, you have two options: You can set up a sub-account in the above locked pay-down manner; or You can choose to have principal payments to the sub-account create additional borrowing room in the Main Account. If you re a small business owner, or if your Manulife One account has been used to purchase an investment property, the amount of credit that s available over 50 per cent of the value of your home must be allocated to a term sub-account. If your borrowing limit is below 50 per cent of the value of your home, you can choose to set up a term sub-account and make payments that either decrease the credit limit of your main account or create additional borrowing room in your main account. Different sub-accounts can have different pay-down methods. 28
Fixed interest rate guarantees Fixed interest rates are determined by the Bank s ability to obtain funds at a fixed rate for a locked-in term. Since rates are constantly changing, Manulife Bank can only guarantee to honour a fixed interest rate for a limited time leading up to the locked-in term. Understanding that home owners may require more (or less) time for certain activities, the Bank will honour the guaranteed rate for a longer or shorter lead-up time, depending upon the client s needs. Please see the chart below. When your term ends A few months before your term sub-account reaches its maturity date, you will receive a detailed renewal package. This package will provide information about your renewal options and what you need to do to inform us of your selection. If you do not reply or pay out the sub-account, it will be renewed into a 1-year fixed rate open term. Contact us for more information or questions you may have about the maturing term. New construction Purchase Refinance After application received After account active Renewal First position roll-in 120 days from date of receipt of application 120 days from date of receipt of application 90 days from date of receipt of application 30 days from date of client request 30 days from date of client request 30 days prior to the end of the term of your existing fixed rate sub-account (if you elect to create another fixed rate sub-account at the end of the term) 90 days prior to the renewal of the first position mortgage 29
Section 4 : When your debt is gone So, what happens to your Manulife One Account when you have a positive balance in your Main Account? Your access to the equity in your home the line of credit secured by your home continues. Since your account puts your money to work for you when you have debt, it only makes sense that it continues to do so once the debt is cleared. As you begin to accumulate money in your account, we give you a competitive rate of interest on any credit balances. This rate is applied to every positive dollar in your account. You can view our current rates at manulifebank.ca or call us at 1-877-765-2265. As with other deposit accounts, credited interest in excess of $50 per year will be subject to income tax. You should also be aware that if you have debt in a sub-account but a positive balance in your Main Account, you would earn interest on the positive balance while still paying interest on your debt. In other words, the positive balance will not be automatically used to lower your interest charges on your debt. The variable credited interest rate fluctuates, is not guaranteed and is subject to change without prior notice. It is applied to any funds in the Main Account when the Main Account is in a credit position. This interest is calculated on the daily closing balance and paid monthly. TIPS: Watch your monthly statement to ensure that you are taking full advantage of all the features of your Manulife One account. If you are earning interest on your Main Account while paying debt in your sub-account(s), you may wish to use some of your Main Account balance to reduce that debt. This will not be done automatically. 30
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Section 5 : Rates and fees Fee changes Fees are subject to change with 30 days notice. Manulife One fees were last amended on May 14, 2017. Current fee information can be found on manulifebank.ca > Services and fees schedule. Monthly fee The monthly fee is $16.95. This fee includes unlimited monthly: Cheque writing. Canadian dollar deposits. Debit card purchases within Canada. Pre-authorized payments. Bill payments. Automated Banking Machine* (ABM) deposits and withdrawals at ABMs bearing THE EXCHANGE logo within Canada. Funds transfers. Internet and telephone banking. The monthly fee is reduced to $9.95 for any account held by an individual 60 years of age or older. The monthly fee will be waived when there s a total positive balance of $5,000 or more across the account at the end of each month. There are some transactions that are charged directly by other institutions or require additional administrative support and are not covered by the regular monthly fee. Fees are on a per-item basis unless otherwise stated, and are in Canadian funds. For the full list of account fees, please visit manulifebank.ca. Exceeding your borrowing limit If your total borrowings exceed the pre-authorized limit at any time (whether by cheque, bill payment, funds transfer, ABM withdrawal or other account charge), the transaction will be rejected and may be returned as Non-Sufficient Funds (NSF). You will need to deposit additional funds into the account and you will be responsible for any NSF charges. Please ensure that you have deposited enough funds each month to avoid exceeding your borrowing limit. Discharge fee Upon discharge of the collateral mortgage security for your Manulife One account, a fee (subject to provincial regulations) is charged to prepare your documents for discharge (this fee is subject to change). Visit manulifebank. ca or call 1-877-765-2265 for details. You are responsible for any fees associated with the registration of the discharge at the applicable land registry office. Please allow 30 days to complete a discharge. *Note: Manulife Bank is a member of THE EXCHANGE ABM Network. Deposits and withdrawals can be made at most of these ABMs. Convenience fees do not apply. 32
Interest rates The section below describes different rates associated with your Manulife One account. Manulife Bank regularly reviews a variety of economic and competitive factors to ensure that our Manulife One Base Rate, our Manulife One Fixed Rates and our Manulife One Credited Rate remain competitive with other similar products in Canada. Manulife One Base Rate Manulife One Fixed Rates Manulife One Credited Rate Maximum Interest Rate The Manulife One Base Rate is a variable interest rate used to determine the rate applicable to your Manulife One Main Account and any Variable Rate Sub-Accounts (term and/or tracking). Refer to your Operating Agreement or login to your account at manulifebank.ca for additional information on the interest rate specific to your account. The Manulife One Base Rate is set independently of Manulife Bank s Prime lending rate, and may change without notice. Manulife One allows you to lock all or a portion of your borrowings into fixed rate term sub-accounts. The rate you receive is guaranteed for the term you choose. Refer to page 26 for a list of fixed rate terms currently available. This is the annual interest rate that will be applied to any credit (positive) balance you have in your Main Account. This rate is variable and subject to change. It s important to note that a credit balance in your Main Account will not automatically offset borrowings you have in a Sub-Account (either fixed or variable rate). In the case where you have a credit balance in your Main Account and outstanding borrowings in a Sub-Account, the Sub-Account will be charged interest at the applicable rate, and the Main Account will earn interest at the Credited Rate. Your Operating Agreement (a liability document that describes the terms of the loan agreement between you and us) sets out the interest rate(s) you will be charged on your Main Account and any sub-accounts (see sections above for descriptions of the Manulife One Base Rate and the Manulife One Fixed Rates. The security document(s) that describe the bank s security interest or charge it takes on your property (attached to your Mortgage/Charge of land document), makes reference to a maximum interest rate, namely the Manulife One Base Rate + 5.0% (the Security Rate ). Provincial laws require us to set and disclose a maximum interest rate that can be charged for a mortgage. This Security Rate is not the rate you are liable for; this is simply a maximum rate covered by the security. Stated another way, the security interest the Bank takes in your property is for interest up to a maximum rate. The Security Rate also sets out the maximum interest rate that can be charged on fixed rate term sub-accounts. For current rate information, visit manulifebank.ca or call Manulife Bank at 1-877-765-2265. Rates are subject to change without notice. 33