How a Fully Open Manulife One Mortgage Avoided a Renewal Penalty Before a Home Upgrade
In Metro Vancouver, a salaried homeowner with strong equity and good credit faced a roughly $500,000 townhome renewal with their major bank within a month, while weighing an upgrade to a detached home.
The Situation
In Metro Vancouver, a salaried homeowner with strong equity and good credit faced a roughly $500,000 townhome renewal with their major bank within a month, while weighing an upgrade to a detached home.
The Challenge
The client was not quite ready to sell, needed a bit more equity, and their income would support the upgrade only next year. A standard renewal would lock them into a penalty when they sold.
The Solution
Instead of the bank's renewal, we placed the client in a fully open Manulife One readvanceable mortgage. Its usual rate is prime plus half a percent; on this file our Manulife relationship secured prime plus zero — a discretionary rate negotiated case by case, not a posted or guaranteed offer. It revolves and can be repaid anytime with no penalty, and their income paid down more principal than a standard renewal would.
The Outcome
The client keeps full flexibility, pays down faster, and is set to upgrade in coming months at the lowest cost. We earned less on it, it was the right fit.
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