The Australian Securities and Investments Commission has published a review finding weaknesses in how all eight banks examined set up, monitored and managed mortgage offset accounts, causing some customers to miss promised interest savings. Banks paid more than AUD 55 million in compensation for failures reported between September 2023 and August 2025, with further compensation expected as remediation continues. The review covered 204,000 home loans and banks representing more than 70% of Australia’s AUD 2.5 trillion home loan market. Key shortcomings included difficulties identifying customer requests, inconsistent failure detection, delays in fixing issues and compensating customers, and limited customer visibility. Of the failures identified in bank data, 55% involved accounts that were opened but not linked, 22% involved accounts that were not opened and 14% involved late linking. Data gaps and manual record reconstruction also indicate that the impact may be more widespread than initially identified. ASIC expects all banks offering offset accounts to strengthen controls, identify and address failures, and appropriately compensate affected customers. It will monitor remediation and may take further regulatory action.
Australian Securities & Investments Commission2026-07-29
Australian Securities and Investments Commission finds mortgage offset failings across eight banks, compensation exceeds AUD 55 million
The Australian Securities and Investments Commission found weaknesses in mortgage offset account practices at all eight banks reviewed, with some customers missing promised interest savings. Banks have paid more than AUD 55 million in compensation, and further payments are expected. ASIC will monitor remediation and expects all banks offering offset accounts to strengthen controls and compensate affected customers.