Offset account review.
Your offset account may help you reduce interest charged, but only if it is linked and working correctly.
ASIC is encouraging home loan customers to check their offset accounts after a recent review found weaknesses in how some accounts were set up, monitored and managed.
This does not mean your offset is affected, but a review can help you confirm that it is working as expected. You can read ASIC’s guidance here.
There are a couple of ways you can check that your offset account is linked correctly depending on your lender:
- Via your banking app or internet banking
- Via your statements (check whether your offset balance is reducing the amount used to calculate interest)
- By contacting your financial institution
For example, if your home loan balance is $750,000 and you have $50,000 in a 100% offset account, interest would generally be calculated on $700,000, subject to the lender’s calculation method and account structure.
It is particularly worth checking if you have recently refinanced, switched loan products or restructured your lending, as these changes can sometimes require an offset account to be re-linked.
Need a hand?
If you are unsure what to look for or what to ask your lender, get in touch and we will help guide you through the next steps.
Our support does not stop when your loan settles. We are here throughout your home loan journey to help make sure your loan continues to work as intended and remains suitable for your needs.
