Yes, 30-year amortization is now available on the Manulife One main account.

We have great news for your clients seeking the benefits of flexible payments, accelerated debt repayment and a tailored made mortgage. This option to qualify a client on a 30-year amortization gives you the additional opportunities to qualify clients who carry higher mortgage balances This can be a common challenge for those in larger urban areas and clients with larger mortgages meeting the Minimum Qualifying Rate on the Manulife One main account. 

Here's a few key details:

• 30-year qualifying amortization should only be used when the client's debt servicing ratios don't qualify on a 25-year amortization because there are pricing implications.
• All lending programs are eligible (Standard, Equity Advantage, Small Business Owner, Investment) – purchase or refinance.
• Preferred Pricing is eligible for 30-year amortization qualification. 
• Qualifying amortization for Manulife One will be either 25-years or 30-years, even if the contractual amortization is less.
• Your lender notes will need to clearly indicate the qualifying amortization and the applicable rate.
• A Sub-account is not required for a client to qualify with 30-year qualifying amortization.

Pricing Implications

Manulife One applications qualified on a 30-year amortization will impact the eligible rate available for a fixed rate sub-account.

New columns have been added to our rate sheet to confirm the rate available.

There is no impact to rate applied to the Main Account.

When a main account or sub-account has an amortization > 25 years:

• As a broker, you will need to refer to the 30-year amortization rate on the rate sheet to validate the applicable rate.
• If a client opens multiple sub-accounts with different amortizations, the qualifying amortization used on the application will be the higher of the two.

Note:

• If a rate commitment was issued before July 16, 2024, that rate will be honored provided the rate commitment is not cancelled or expires.
• If a client qualifies with 25-year qualifying amortization but chooses a contractual amortization of 30-years (they've always been able to do this), they won't be charged the rate premium.

Lender Notes

You will need to indicate on the Lender Notes the qualifying amortization on the main account and applicable rate to be used on the Manulife One sub-account(s).

For more information, contact your dedicated Business Development Manager or Personal Mortgage Consultant.