CT’s "One-and-Only" Mortgage

CanadianTire Canadian Tire is now the newest player in the “all-in-one” mortgage market.  Their recently launched One-and-Only product combines your mortgage, chequing and savings, loans, and credit cards into one account.

Here’s how it works:

  • Your incoming funds (like your paycheque) are immediately deposited into a variable-interest-rate “combined” account. 
  • Interest on the “variable” account is calculated daily.  CT says this can reduce the interest you pay by lowering your total debt level all at once–even if temporarily.
  • Interest on all debt in the “variable” account is at prime rate, currently 6.25%.
  • You can lock in up to 10 amounts over $10,000 (like a mortgage, car loan, etc.) at a fixed rate–currently 5.84%.  This rate is non-negotiable.
  • Credit is automatically readvanceable.  Therefore, once you pay down your debt, you can run it up again. This is handy for the Smith Manoeuvre.
  • The One-and-Only is currently only available in Ontario, BC, and Alberta. 
  • CT charges no monthly fees
  • There are no appraisal or legal fees if you use CT’s partner First Canadian Title to close (instead of your lawyer).

On the downside, the interest rates could definitely be better.  While CT charges 6.25% on the combined account, most people can get 5.35% or less with a traditional variable mortgage.  As Canadian Capitalist notes, “your ‘savings’ from a combined account does not make up for the cost of not opting for a traditional mortgage.”

Nonetheless, CT, which acquired its banking license in 2003, has an eye for growth.  All-in-one products are held by 1/3 of all mortgagors in Britain and Australia and CT think’s it can popularize them here as well.  Last quarter, it spent $18 million marketing its new banking products. 

As long as the combined interest rate is at prime, however, the One-and-Only (and similar products like Manulife’s “One“) might not be adopted as fast in Canada.  There are simply too many alternatives available at rates less than prime.

In any case, if you’d like more information, contact Canadian Tire directly here.  Mortgage planners do not deal in this product.

  1. Hi,
    I currently have a similar account with Manulife with a 6.25% interest rate. How can I transfer my account? What is the benefit for me?

  2. Hi Sheila,
    Thanks for the note and thanks for reading CMT. Switching from Manulife to Canadian Tire may involve interest penalties if you have a fixed rate portion at Manulife.
    However, based on your interest rate (prime rate), I’m guessing you don’t. Therefore penalties may not apply.
    I’m not sure but Manulife might also charge a discharge fee. Please contact Manulife directly to confirm both of these points.
    As for Canadian Tire, there shouldn’t be any fees besides legal. If you’d like to email me at info@canadianmortgagetrends.com I can send you contact information for a nice rep. we work with at Canadian Tire who can answer all of your questions.
    Also, here is a link you might find handy for comparing the Canadian Tire and Manulife products, plus others:
    Smith Manoeuvre Mortgages
    Kindest regards,

  3. Please note: The original story stated that CT does not pay legal fees. That is true if you use your own lawyer. However, if you use CT’s partner First Canadian Title then CT will cover both your legal and appraisal fees.
    Rob, Co-Ed., CMT

  4. My mortgage is coming due in sept/08 and I am looking for information about this product(one and only). I have a home est value of $320g ,mortgage of $150,00 and combined debts of apprx $10,000. Is this a type of product I should be looking at or should I stick with a conventional fixed rate mortgage. I would like to know the pros and cons of this product or any similar. Thanks in advance

  5. Hi Don!
    CT’s One and Only is a good product. There are also other good choices out there with similar features. Our readvanceable mortgage comparison lists most of the available options in this space, and some of the pros and cons of each.
    If you don’t need the readvanceable line-of-credit feature you can most definitely find lower-costing fixed-rate mortgages out there.
    Feel free to email us or any other mortgage planner for examples.

  6. Helen, call 1-866-681-CTFS (2837) to find out, right now they are offering one and only at 4%,
    But I wonder if Canadian Tire deals with brokers?

  7. Hi Helen,
    Thanks for the note. In general, it is better to “compound” a mortgage interest rate less frequently (semi-annually is a little better than monthly).
    However, with an all-in-one type mortgage it can be better to “calculate” the interest due more frequently.
    Canadian Tire, National Bank and Manulife all-in-one accounts calculate your interest more often so deposits to your account reduce your debt balance (and interest due) right away.
    In Canadian Tire’s case (according to the rep we spoke to) they calculate the interest daily based on your end-of-day balance, but charge you (compound) that interest monthly.
    As of today the rate is 4.75%. As of Saturday it will be 4.00%. CT adjusts their mortgage prime rate on the first of every month I believe.
    CT has a good product but there are other options worth considering as well. One we like is National Bank’s All-In-One.
    * It lets you lock in portions of your line of credit in a fixed or variable rate–or both. This is useful for interest rate diversification. (Note: This feature will be more relevant once discounted variable rates come back)
    * It has multiple sub accounts (up to 99) which is handy if you want track the interest separately for each type of borrowing you do.
    * It includes excellent free online banking, chequing, and a consolidated statements
    * It is registered at 100% of your property value so you can increase your credit line if yur home value rises–without refinancing
    Hope this helps….

  8. Hi Reb,
    Canadian Tire’s road reps do “deal” with brokers but they do not “pay” brokers.
    We send them business regardless because they often have products that meet our client’s needs.
    If you’re a homeowner looking at these types of mortgages it’s helpful to first find a mortgage planner who knows all three products and can compare them for you. Not all mortgage planners do, and not all will refer business to Manulife and Canadian Tire. So do your homework on which broker you choose!

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