ASIC’s recent review into mortgage offset accounts has highlighted a simple but important truth: thousands of borrowers may not be getting the full benefit of their offset, often due to setup issues they didn’t even know existed.
For Perth homeowners — especially those juggling rising living costs — making sure your offset is working properly can be one of the easiest ways to reduce interest and improve cash flow.
🔍 What ASIC’s Review Really Found — And Why It Matters
ASIC’s latest investigation uncovered widespread failures in how banks set up, link and manage offset accounts — failures significant enough that banks have already paid over $55 million in compensation to affected customers between September 2023 and August 2025.
The review covered eight major banks, representing more than 70% of Australia’s $2.5 trillion home loan market, and found weaknesses across all of them.
Some of the most concerning findings included:
- 55% of identified failures involved an offset account that was opened but never linked to the home loan
- 22% of failures involved offset accounts that were never opened at all
- Banks struggled to identify when customers had requested an offset
- Detection of failures was inconsistent
- Compensation was slow or missing
- Customers lacked visibility into how their offset was functioning
ASIC Chair Sarah Court described the harm as “hidden”, because repayments appear normal while customers unknowingly pay more interest and take longer to repay their loan.
For borrowers, this means one thing: you cannot assume your offset is working — you need to check it.
If you want clarity, you can explore a mortgage review with us anytime.
đź’ˇ Why Offset Accuracy Matters
An offset account only works when it’s properly linked and holding funds in the right structure.
When set up correctly, an offset can:
- Reduce the interest charged on your loan
- Shorten your loan term
- Improve monthly cash flow
- Provide flexibility without locking funds away
But if it’s not set up correctly, you could be losing hundreds — even thousands — per year.
If you’re unsure how offsets affect your loan, you can ask us to explain interest impacts.
🧠How to Check Your Offset Is Working
Here are the key steps borrowers should take:
- Confirm loan linkage — Your offset must be linked to the correct loan account
- Check daily balance treatment — Interest should be calculated on your loan minus your offset balance
- Review account type — Some accounts marketed as “offset-like” are actually redraw facilities
- Check lender statements — Your statement should show interest reduced by your offset balance
- Confirm multiple offsets — If you have more than one, ensure they’re all linked correctly
Fox Mortgages can assist in quickly checking this for you.
📉 Why This Matters Now
With cost‑of‑living pressures rising and many Perth borrowers tightening budgets, ensuring your offset is functioning correctly is one of the simplest ways to reduce interest without changing lenders or refinancing.
ASIC’s review is a reminder that borrowers shouldn’t assume everything is set up correctly — especially if:
- Your loan is older
- You’ve switched products
- You’ve added or removed accounts
- Your lender has changed systems or policies
A quick review can save you money immediately.
🔧 How Fox Mortgages Helps
We’ll check:
- Whether your offset is linked correctly
- Whether your lender is calculating interest properly
- Whether your account structure is optimal
- Whether refinancing or repricing could save you more
And if needed, we’ll negotiate with your lender on your behalf.
If you want to explore broader savings, you can review refinancing strategies.
🚀 Ready to Make Sure Your Offset Is Working for You?
If ASIC’s review has raised questions about whether your offset is set up correctly, you’re not alone — and you don’t need to figure it out yourself.
At Fox Mortgages, we can review your loan structure, check your offset linkage, and confirm you’re actually receiving the interest savings you expect. A quick check now can prevent years of unnecessary interest.
You can take action today:
- Book a loan health check to confirm your offset is linked and functioning
- Request a statement review so we can verify interest is being calculated correctly
- Ask for a full mortgage optimisation if you want deeper savings across your loan
- Explore refinancing options if your current lender isn’t delivering value
Your offset should be working hard for you — not the other way around.