Australians have hundreds of billions of dollars sitting in offset accounts, so even small mistakes can have expensive consequences.
As of March, Australians held about $349.1 billion in offsets – 28% more than two years earlier.
But ASIC, the financial services regulator, has discovered problems with the way some banks have been managing them.
Its review of eight major banks found weaknesses across all eight, with some customers missing out on the savings they’d been promised.
Banks paid more than $55 million in compensation for offset failures between September 2023 and August 2025, and more compensation is expected.
Three things worth checking
Take a look at whether:
- Your offset is correctly linked to your mortgage.
- Your entire balance is being offset against your loan, if that’s what your product promises.
- Your loan statements reflect the interest savings you expect.
Offsets can be powerful mortgage-management tools – but only when they’re working properly.
Not sure whether your offset is working as it should? Get in touch to check how it’s set up and whether you’re making the most of the feature.
