6.4.11 Mortgage Offset

You can hold an Offset Account against a Mortgage Account. The Offset Account can be held in the form of a CASA Account. Even though the CASA Account and the Mortgage Account are two distinct accounts, a rate is generated only for the Mortgage Account during pricing. No rate is generated for the CASA Account. The balance that is held in the CASA Account is used as an offset to the Mortgage Account, thereby reducing the tenure and payments for the Mortgage Account. Profitability parameters are also calculated only for the Mortgage Account and they are inclusive of the effect of the Offset Account.

If you have both CASA and Mortgage Accounts as part of the deal, then you can use the CASA Account as an offset against the Mortgage Account. You can select the Mortgage Account against which the CASA Account can be used as an offset through the Deal Pricing Section.