ASIC report suggests it’s time to check on your mortgage offset account (August 2026)

You set up your offset account expecting it to reduce the interest charged on your home loan. But
what if it’s not linked correctly, or isn’t operating as intended? ASIC has released a report examining
how major lenders manage mortgage offset accounts. The review covered eight banks representing
more than 70 per cent of Australia’s home loan market.

While practices varied across the banks, ASIC identified weaknesses at each lender in how offset
accounts were opened, linked, monitored and managed. In some cases, customers missed out on
the interest savings they were entitled to receive.

Offset accounts are marketed as an easy way to reduce interest across the life of a loan, yet the
review found this promise isn’t always delivered. Loan repayments can stay the same while
customers unknowingly pay more interest and take longer to repay their loan.

Among the failure types identified across the 204,000 loans reviewed, 55% involved an offset
account that had been opened but not linked to the home loan, while 22% involved an account that
hadn’t been opened. Other issues stemmed from system errors, process gaps and poor record
keeping. In some cases, banks couldn’t even confirm whether a customer had originally asked for an
offset account.

Given ASIC’s findings, you may wish to check that your offset arrangement is operating as intended:
log in to your online banking or mobile app and confirm the offset is linked to your home loan;
check whether the balance is being applied to the correct loan and at the applicable offset
percentage provided under your loan terms;
review recent loan statements for anything that looks inconsistent; and
if you’ve refinanced or switched loan products, ask your bank whether the offset needs to be re-
linked.

If the information is not available, raise it with your bank.