Hidden mortgage trap: Why 57% of Aussies could be paying thousands in extra interest.
 "Hidden mortgage trap: Why 57% of Aussies could be paying thousands in extra interest.")
Did you know that more than half of Australian mortgage holders could be losing thousands without even realising it?
Recent research from Money.com.au shows that 57% of Australians have never checked if their offset account is correctly linked to their home loan.
This simple oversight could cost borrowers over $111,000 in extra interest over a 30-year loan term on a $600,000 mortgage at 5.50%.
What’s going on?
Many homeowners assume their lender automatically links their offset account to their mortgage. Unfortunately, that’s not always the case.
Mistakes happen and they’re more common than you think.
- Administrative errors
- Refinancing changes
- System mismatches
If your offset account isn’t linked, you’re missing out on the interest savings you expect.
Why you should care
- 10% of borrowers believe their offset is linked automatically.
- Only 25% have checked and confirmed the link.
- Older Australians are least likely to check, with 69% of Baby Boomers admitting they’ve never confirmed the link.
That’s a lot of people leaving money on the table.
Why act now?
ASIC is investigating major lenders for systemic offset mislinking. Don’t wait for a nasty surprise, a quick check today could save you thousands.
How FinancePath keeps you protected At FinancePath, we understand how critical it is for your offset accounts to be correctly linked to your loan. When they’re not, you could be missing out on significant interest savings—what we call a hidden mortgage trap. That’s why we’ve built a staged process to eliminate this risk for our clients. 1) Face-to-face contract signing Where possible, we meet with you in person to sign loan contracts. This allows us to:
2) Pre-Settlement verification Our Relationship Management team plays a vital role in this stage:
3) Post-Settlement follow-up Two weeks after settlement, we conduct a follow-up call to:
This is part of our commitment to delivering a seamless, proactive lending experience ensuring you never lose out on the benefits you’re entitled to. |
Need help?
If you’re unsure whether your offset account is linked, FinancePath can help. Contact us today and we’ll make sure your mortgage works for you, not against you.
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Author:Chris Collard| Tags:mortgageoffsethome loan health checkhidden mortgage trapoffset account |
