Have an offset. Still paying too much interest?
An offset account can be open and hold money without being correctly linked to the intended home loan. ASIC's 2026 review found weaknesses in how reviewed banks set up, monitored and managed offset accounts, resulting in some customers missing out on promised interest savings.
Reports to ASIC between 1 September 2023 and 31 August 2025 show banks paid more than $55 million in compensation for offset-account failures. The review covered eight banks representing more than 70% of the Australian home-loan market; it does not mean every offset account or every bank account has failed.
Why can the problem remain hidden?
A working offset reduces the home-loan balance used to calculate interest. The required repayment may stay the same, so a broken or missing link can remain unnoticed while the borrower continues making apparently normal repayments.
ASIC says common home-loan changes, including refinancing or switching products, can disconnect an offset account. The account may need to be linked again after the change.
Check the link, benefit and any recent change
Linked loan: confirm in the banking app, online banking or statement that the offset is connected to the correct home loan or loan split. An account name and balance do not prove that the link is active.
Interest benefit: look for the offset information or interest saving available through the lender. If the benefit is missing or unclear, ask the lender to investigate and explain the calculation.
Recent change: recheck the connection after refinancing, changing products or restructuring loan splits. Confirm whether the lender requires the offset to be relinked.
Compare the feature with its full cost
BV Finance can help compare the offset feature, interest rate, fees and expected balance against other suitable loan structures. Actual savings and access conditions depend on the lender, product, daily balance and borrower circumstances.
Sources and practical tools
General information only. This is not financial advice. Loan options and eligibility depend on your personal income, liabilities, assets and lender assessment criteria.
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