Pay Off Your Mortgage Faster With Manulife One?

I have recently stumbled upon a new type of bank account from Manulife, called Manulife One. The concept of this bank/mortgage account consists of combining all your different types of bank, chequing, savings, line of credit and mortgage accounts into one. Manulife One provides loans of up to 75% or 90% of the appraised value of your home (in other words 25% or 10% down payment minimum).

All the debt is now in one place at one low interest rate. Any of your short-term savings (chequing and savings accounts balances – even your income) are deposited into the account to reduce your total debt. Then, you simply use the account as you would any regular chequing account, with a debit card, cheques, pre-authorized withdrawals, and so on. Now, every time you get paid, your income immediately lowers your debt and continues to save you interest until you need to use your money for something else.

This strategy will work best for anyone who follows a budget or is financially responsible.

Take a look at this clip showing how it works: http://www1.manulifebank.ca/E/m1/demo.html

Their calculator compares the traditional mortgage vs. Manulife One:
http://manulifedc.com/files/banking/index.html

I used the calculator to compute my financial situation which resulted in paying my mortgage in half the time compared with the traditional way. This is largely due to the fact that the traditional way restricts my contribution to the mortgage.