What ASIC found
ASIC reviewed eight banks covering more than 70% of the Australian home loan market. The review found that some customers with mortgage offset accounts were paying more interest than they should because their offset account was not properly linked to their home loan.
The problem can go unnoticed for years because repayments stay the same even when the offset link is broken.
Between 1 September 2023 and 31 August 2025, banks paid over $55 million in compensation to affected customers.
Example of the financial impact
ASIC calculated that a couple with a $750,000 loan keeping $50,000 in an unlinked offset account paid more than $3,000 in extra interest in a single year. Over the life of the loan, the missed savings could reach $230,000.
Common cause of broken links
ASIC found that common events such as refinancing or switching loan products can break the link between the offset account and the home loan. ASIC also found that banks sometimes only discovered failures after a customer complained.
Key actions
- Log into your bank's mobile app or online banking and confirm your offset account is shown as linked to your home loan - do not assume it is working just because one was requested.
- Check that your statements or app show the interest savings from your offset account - if the savings are not visible, contact your bank directly and ask them to confirm the account is linked correctly.
- If you have recently refinanced or switched home loan products, contact your bank to confirm your offset account was re-linked after the change, as ASIC found these events commonly disconnect the account.
- If something looks wrong or unclear, contact your bank and ask for an explanation.
- Read ASIC Report 837 for the full findings - search 'REP 837' on the ASIC website at asic.gov.au.
Full report
The full findings are published in ASIC Report 837, titled 'Offsets, out of mind: Banks fall short on mortgage offset account promises' (REP 837).
This is a plain-English summary for information only, not legal or compliance advice. Always check the official source or consult a qualified professional.