[marcins]

Does the US not have Mortgage Offset Accounts? An offset account is essentially a normal transaction account tied to your mortgage, but every dollar in the account "offsets" the mortgage balance for daily interest calculations. My "emergency fund" is just in one of my offset accounts, so it's saving me on my mortgage interest.

[TimPC]

This sounds like a useful banking product but unfortunately in Canada and the US they mostly try and get us to pay the mortgage quicker and then borrow money back at a higher rate if we need to. I think this product would lead to people not using other loan products and never overpaying on their mortgage (why would you if you can offset the interest?)

[lbotos]

Sounds like a "home equity line of credit"

[marcins]

It’s not really the same, that sounds like “redraw” here where you put more money into the loan but you can take it out again. Offset has all the benefit (reduced interest payments), with total flexibility. You can clear out your offset accounts anytime without penalty (redraw usually attracts a fee)