If you’ve got savings sitting in a chequing account or cash flow piling up in an everyday bank balance, chances are it’s doing almost nothing for you. Meanwhile, your mortgage is quietly charging interest on every dollar you still owe. That’s dead money.

An offset mortgage flips the script. Instead of collecting dust, your money sits in an account linked directly to your mortgage balance. The bank calculates interest only on the net difference. Which means every dollar you park there reduces the interest you pay.

Here’s the play:

Say you have a $400,000 mortgage at 5.25% and keep $25,000 in your offset account. Instead of paying interest on $400,000, you’re charged on $375,000. That alone saves roughly $1,100 a year without putting an extra dime toward your mortgage payment.

The real kicker? You keep access to the cash. Need it for an emergency, a trip, or an investment? Pull it out anytime. Until then, it’s quietly working to shrink your interest bill and speed up your equity growth.

Yes, offset mortgages can carry slightly higher rates or fees than standard products. But for homeowners who keep meaningful cash on hand, whether in savings, business accounts, or rental reserves, the math often works in their favour.

If you’ve got liquidity, don’t let it sit idle. Put it to work in an offset structure and watch your mortgage cost shrink without changing your lifestyle.