• A set-off mortgage involves a combination of aspects of a traditional mortgage with one or more deposit accounts with the same financial institution.

  • Funds in deposit accounts are then used to pay off the balance of the mortgage, reducing monthly payments.
  • Offset mortgages are standard in many countries, but US tax law does not currently allow them.
  • An offset mortgage is an attractive option for repaying a mortgage, primarily because the borrower can make small payments to repay principal instead of interest.