(ELI5) Explain the different between and offset mortgage and a revolving credit mortgage.

Question

I have no idea what the difference is and how you can set it up to reduce interest.

In: 2

Answer 1

A revolving credit mortgage is a type of mortgage where the borrower can choose to make payments of any amount at any time, up to the maximum loan amount. An offset mortgage is a type of mortgage where the borrower’s savings are used to offset the amount of interest they pay on their mortgage.