Cost of Borrowing

Annual Percentage Rate (APR) is the total cost of borrowing provided as an annual percentage, which includes the current Manulife Bank interest rate and charges such as appraisal costs and legal fees. If there are no charges applicable to a mortgage, such as on a transfer of your mortgage to Manulife Bank, then the APR will be as stated above which is the current Manulife Bank interest rate. If charges are included in your cost of borrowing on a new home purchase, then the APR will be slightly higher than stated above.

The Bank Account Rate is a current variable interest rate that fluctuates and is not guaranteed. It is applied to any funds in the banking portion of your Manulife Bank Select account and is paid to you. This interest is calculated on the daily closing balance and paid monthly.

Interest rates

• Click here for current Manulife Bank Select interest rates.
• If you have chosen a fixed rate, the interest is compounded twice per year but charged monthly. If you have chosen a variable rate, the interest is compounded monthly and charged monthly.

Costs incurred in opening a Manulife Bank Select account

Legal fees — You are responsible for paying the legal fees associated with setting up your mortgage. Specific legal fees relating to individual home purchases vary by transaction and depend on individual circumstances and on the lawyer’s fees.

Cancellation fees may be charged by your current institution.

Mortgage Loan Insurance — If you have a down payment of less than 20%, you will need to purchase Mortgage Loan Insurance. This insurance protects the lender in the unfortunate event that a property forecloses. Mortgage Loan Insurance is offered by the Canada Mortgage and Housing Corporation (CMHC) or Genworth Financial. In some instances, it is required even if the down payment is 20% or more. Those cases can be explained to you by your Banking Consultant. If you do require Mortgage Loan Insurance, we will provide you with a Mortgage Loan Insurance Disclosure form that clearly identifies your premium and all your personalized details in relation to it.

Account fees — You have the option of choosing between two different fee structures for the banking portion of your Manulife Bank Select account: a monthly fee with unlimited transactions or a pay per transaction account.

Fees associated with closing a Manulife Bank Select account

Discharge fee — Upon discharge of a mortgage associated with a Manulife Bank Select account, a discharge preparation fee applies. At November 1, 2011, this fee is $250 and is subject to change and provincial regulations.

Prepayment penalty — If you’ve chosen a closed term, you’ll pay a penalty if you choose to pay out your mortgage before the end of the term. This penalty is the higher of these two amounts: three months’ interest costs on the amount being paid out or the interest rate differential. Refer to your Operating Agreement for complete details.