Track your Debts Separately to Simplify Tax Deductions

Imagine a banking service that can streamline your banking while making your mortgage work harder at creating wealth for you. This innovative, ‘all-in-one’ account turns your income into a powerful debt-reduction strategy while the accompanying low-interest, Home Equity Line of Credit (HELOC) conveniently covers all your expenses. Welcome to Manulife ONE.

Manulife One allows you to create up to five sub-accounts with fixed or variable rates and an open or closed term. Your FORTAX Financial Advisor can help you work this into your financial planning for maximum effectiveness.

For example, create a fixed-rate sub-account and lock in a portion of your mortgage. This is valuable if you think the interest rates are going up.

You can separate debts into different accounts. Choose to pay only the interest on one sub-account and have another that pays the interest plus principal. It’s all up to you.

If you have loaned money to a family member, track the repayment of that debt. Or keep a separate account to borrow for investing, where the interest is tracked for your tax deduction.

You can also adjust your payment schedule to accommodate changes in your finances, such as paying only the interest during a period of unemployment.

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