What ASIC found
On 29 July 2026, ASIC Chair Sarah Court held a press conference to release a report on failures by Australian banks in managing mortgage offset accounts. ASIC reviewed eight banks covering more than 70% of Australia's $2.5 trillion home loan market and found problems at all eight.
Compensation paid so far
Over a two-year period, banks have paid more than $55 million in compensation to more than 250,000 customers who missed out on interest savings because their offset accounts were incorrectly set up, delinked, or not linked at all. ASIC states the total amount of potential customer losses is currently unknown.
Examples of individual losses identified in the report include:
- One customer paid more than $3,500 in extra interest in just over one month after their offset account was incorrectly delinked.
- Two other customers paid more than $17,000 in extra interest after a bank failed to relink an offset following refinancing.
Four main problems identified
ASIC identified four main problems across the banks reviewed:
- Banks could not easily tell if a customer had requested an offset account.
- Some banks could only detect failures through customer complaints or ASIC data requests.
- Some banks were slow to compensate affected customers.
- Customers have no way to independently confirm their offset account is set up and working correctly.
What ASIC expects from banks
ASIC expects all banks to identify and promptly compensate affected customers. ASIC states it will continue to monitor the situation and will take further regulatory action where appropriate.
Key actions for mortgage holders
The following actions are described in ASIC's release for anyone with a mortgage and offset account:
- Contact your bank to confirm the offset account is correctly linked to your home loan and is actively reducing your interest.
- Ask your bank directly whether you have been affected by any offset account failures and whether you are owed compensation, as banks are continuing remediation programs.
- If you believe you have paid extra interest due to an offset account problem, lodge a complaint with your bank in writing and keep records of the response.
- Read the full ASIC report at asic.gov.au for details on what ASIC found and what banks are expected to fix.
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.