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.

Here is what to check:

1. Log in to your internet banking or banking app.

2. Open your home loan and confirm your offset account is linked to the correct loan.

3. Check your statements or account details to see whether your offset balance is reducing the amount used to calculate interest.

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, reply to this email 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 lending continues to work as intended and remains suitable for your needs.