After a recent review of how Lenders manage their Mortgage Off-Set accounts, it was identified by ASIC that there were weaknesses in how all banks set up, monitored and managed offset accounts - resulting in some customers missing out on promised savings.
 
What is a mortgage offset account?
 
An offset account is a separate transaction or savings account linked to an eligible home loan.
 
The money remains available for the customer to spend, just like a normal transaction account, but the balance reduces the amount of the mortgage on which the bank calculates interest.
 
For example, someone with a $500,000 mortgage and $50,000 in a 100 per cent offset account should generally be charged interest on $450,000, rather than the full loan balance.
 
That can produce substantial savings over the life of a mortgage, provided the account is correctly linked and operating as intended.
 
How can a mortgage broker help?
A mortgage broker will assist with your Lending as they explain the best way way to manage your borrowings to ensure you are using all the features and benefits available to you, including the offset feature.

Reach out to Andrew Forsyth and Bonny Roebuck with any questions you have - clarifying your circumstances will help them understand your situation and help them provide the right assistance to ensure you are getting the best out of your Home Loan package.
 
Call the office on 3391 7566 to get things started. 



Read the ASIC Media Release here.