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Offset mortgages
Let every dollar in your account lower your mortgage interest
An offset mortgage, also called an all-in-one account, combines your mortgage, chequing and savings. Your paycheque and savings sit against what you owe, so you pay interest only on the difference, every day, and your money is still there when you need it.
How it works
Your money keeps working while it waits to be spent.
One account
Your mortgage, chequing and savings live together in a single account with one borrowing limit.
Deposits offset debt
Your income and savings land in the account and lower the balance you’re charged interest on, as soon as they arrive.
Interest is daily
Interest is calculated on the net balance each day, so even money that sits for a week saves you something.
Spend as usual
You pay bills and spend from the same account. Whatever stays, keeps lowering your interest.
Offset estimate
See what the money you usually keep in the bank could save if it sat against your mortgage instead.
For illustration only. Assumes your average cash balance stays the same, the same interest rate on the whole balance and the same monthly payment. All-in-one accounts can carry a different rate than a standard mortgage, which can change the result.
What it could look like
An illustration, not a real client.
Illustrative example
$20,000 kept in the account
The starting point
Taylor has a $400,000 mortgage at 4.5% with 25 years left, and usually keeps about $20,000 between chequing, savings and an emergency fund.
With an offset account
That $20,000 sits against the mortgage, so Taylor pays interest on about $380,000 instead of $400,000, while the money is still available any time.
Why it adds up
In the first year that’s roughly $900 of interest Taylor doesn’t pay. Keeping the same payment, the savings compound and the mortgage is paid off sooner. Try the estimate above with your own numbers.
What to know before you start
An offset account is a powerful tool for the disciplined, and a trap for the rest.
- The rate can be higher. All-in-one accounts often carry a higher rate than a standard mortgage, so the interest saved has to outweigh the difference.
- It takes discipline. Your home equity is always within reach. If it gets spent, the balance can drift up instead of down.
- You’ll need at least 20% equity. Like other readvanceable products, these accounts generally need your borrowing at 80% of your home’s value or less.
- It works best with a cash cushion. The more you typically keep on hand, the more it saves.
- It’s a lender product. Only a small number of Canadian lenders offer one, and the right fit depends on your situation.
How we work together
We start free, and you decide at every step whether to keep going.
- 1
See your range
Try the offset estimate above.
- 2
Free strategy call
We get to know your situation and see whether an offset mortgage is a fit.
- 3
Your custom Blueprint
$500. Scenarios built on your real numbers, reviewed with you on a call.
- 4
Implementation
If you go ahead, your $500 is credited toward implementation.
Questions
Is an offset mortgage a tax strategy?
Not on its own. It saves interest rather than creating deductions. It can be paired with cash damming or other strategies, with separate sub-accounts so deductible borrowing stays easy to trace.
Can I still get to my money?
Yes. Your deposits are available to spend at any time, up to your borrowing limit.
Is it better than a high-interest savings account?
Often, when your mortgage rate is higher than what savings would earn, because the interest you avoid isn’t taxed. Your Blueprint compares the two for your situation.
Who is it a good fit for?
People who keep a healthy cash balance, have variable income, or want everyday banking and their mortgage in one place, and who are comfortable with having home equity within reach.
Does Front Porch Consulting set up the account?
Front Porch Consulting doesn’t arrange mortgages. If an offset account fits your plan, your Implementation Report includes what to take to your lender or mortgage professional.
Other strategies
Every situation is different, and some of these can be stacked together. We’ll talk through which ones fit on your free strategy call.
Rental cash damming
Your rent pays down your home mortgage while the rental’s bills are paid with borrowing that may be tax-deductible.
StrategyBusiness cash damming
For self-employed people: your business income goes on your mortgage and your business expenses are paid with deductible borrowing.
StrategyDebt swap
Use non-registered investments to pay down your mortgage, then borrow to reinvest, so the interest may be deductible.
StrategyCash flow diversion
Keep investing the same amount each month, routed through your mortgage so your borrowing becomes deductible.
Curious whether an offset account fits?
We’ll weigh it against your other options on a free strategy call.
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Last updated November 2026.
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