An offset account should reduce your interest bill automatically – but a new ASIC review shows that’s not something borrowers should simply take for granted.
 
ASIC, the financial services regulator, reviewed eight banks representing more than 70% of Australia’s home loan market and found weaknesses in how all eight set up, monitored and managed offset accounts.
 
Between September 2023 and August 2025, banks paid more than $55 million in compensation for offset failures, with further compensation expected.

The problem can be hard to spot

When an offset isn’t working correctly, your repayments may not change.
 
Instead, more of each repayment can go towards interest and less towards reducing your principal – potentially leaving you worse off without realising it.
 
That’s why it’s worth checking that your offset is properly linked to your loan and that you’re receiving the interest savings you expect.
 
If you’re unsure how your offset should be working, I can help you understand your loan structure and what to check with your lender.