Did you know that over 50% of mortgage holders never check if their offset account is correctly linked to their home loan? This simple mistake could cost you thousands of dollars in unnecessary interest every year.
What Is an Offset Account and Why Does It Matter?
An offset account is a powerful tool to reduce the interest you pay on your home loan. It works by offsetting the balance in your account against your mortgage. For example:
- Home loan: $460,000
- Offset account: $50,000
- Interest charged on: $410,000 (not $460,000)
But here’s the catch: if your offset account isn’t linked properly, that $50,000 does nothing. You’ll pay interest on the full loan amount. At an interest rate of 6%, that mistake could cost you $3,000 every year.
Disaster if they aren’t linked…
But if the offset account isn’t linked correctly, that $50,000 does nothing—and the borrower pays interest on the full loan amount. At an interest rate of 6%, that mistake could cost $3,000 per year.
Why would this happen…
- Lenders fail to link the offset account correctly during setup.
- Borrowers assume it’s automatic and never check.
- Changes to accounts or loan structures can break the link.
How to Check If Your Offset Account Is Linked Correctly
- Log in to your online banking and check your loan details.
- Confirm with your lender that your offset account is linked to your home loan.
- Review after any changes to your accounts or loan structure.
- It only takes a few minutes—and could save you thousands.
The Bottom Line
Offset mis-linking is a silent cost for homeowners. A quick check today can protect your savings and help you pay off your mortgage faster..
✅ Need Help? Contact Your Local Oxygen Broker Today
Don’t leave money on the table. Your local Oxygen Home Loans broker can review your offset account setup, ensure everything is linked correctly, and help you maximise your savings.
Click here to find your nearest Oxygen broker and book a free Offset Health Check today!