Quote:
Originally Posted by bizaro86
I'm surprised the commissions are lower, because it's more like a mortgage than a bank account. Manulife makes money on the interest rate differential, and it must be decent, because their current variable rate is 3.5%. Comparing that to the 2.2% I just got on a variable rate mortgage, there is definitely some profit margin in there for somebody. If it's not going to the advisors who sell the product, then it must be going to Manulife.
*** http://www2.manulifeone.ca/about-my-.../todays-rates/ (source) |
Well to be honest I don't know how much a mortgage broker makes on a mortgage? I just know that as an advisor my primary source of income is not through Manulife One...then again I don't recommend it for every client. I have some clients who have never heard about this from me because I know their financial situation and habits and I just think it would be a mistake for them and they could get into more trouble than its worth.
Manulife clearly makes a few bucks off these plans, as does any financial institution lending money. Part of that though is that they are taking the risk by lending the funds in the first place....according to some people in this thread its a huge risk because the properties that they are lending against have been due to see their values fall off a cliff anytime over the past two-three years!