I feel this argument is 6 of one, half a dozen of the other.
The account offers the ability to put all of your available money "down" on your mortgage amount to reduce the interest charge as much as possible. Of course you pay your expenses out of this account, but it basically eliminates hundreds or thousands of dollars sitting in a chequing account doing nothing.
But the offset is the higher interest rate. So I'm able to use all of my money to lower the principle amount as much as possible, but the interest rate is higher on that lower principle. So the end question is, do those amounts offset each other? Would I come out ahead?
It all depends on your situation really.
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