Check that your offset is doing its job.
Check the account link, interest information and recent loan changes. Prepare clear questions for your lender if something is missing.
By Ratey · General information for Australian borrowers.
What can you confirm?
Check your bank records for the offset account, the loan it is linked to and the interest benefit. An unchanged repayment does not show whether the offset is working. Use this checklist to identify what your records confirm and what to ask your lender. It is a check you perform using your own banking information; Ratey does not access your accounts or verify the bank’s daily interest calculations.
Example: a repayment stays the same
Imagine a principal-and-interest repayment of $3,000. In one simplified month, $2,200 covers interest and $800 reduces principal. If a working offset lowers that interest to $2,050 while the repayment remains $3,000, principal falls by $950.
The additional $150 of principal reduction explains why checking only the direct debit misses the benefit. This is an invented teaching example with no fees or other transactions. Your lender’s statement and account terms determine the actual allocation.
Find the link to the right loan
Open your bank app, online banking or a recent statement and find the account details. Look for an explicit link to the intended home loan. A savings account with an offset-style nickname is not enough evidence. For a split loan, identify the particular portion being offset.
ASIC recommends checking that the link exists and contacting the bank if the information is unclear. Record what you can see and the date you checked. Keep any account identifiers in your own records; you do not need to enter them here.
Look beyond the repayment amount
Find the interest charge for a complete statement period and any displayed offset benefit. Write down the dates covered. A calendar month and a statement cycle may have different boundaries, so comparing them without adjustment can create a false discrepancy.
Treat a missing savings display as a question for the bank. It does not establish that no saving occurred. Likewise, a familiar direct debit amount is not a substitute for checking the interest calculation. CommBank’s offset guide explains its own account operation and illustrates why product documentation matters.
| Record | What it can tell you |
|---|---|
| Account link | Which loan is receiving the offset |
| Interest charge | Interest posted for the stated period |
| Offset benefit | The lender’s stated saving, if available |
| Repayment | Money paid, including any principal component |
Use a rough estimate as a question
For a constant $25,000 eligible balance at a hypothetical 6% rate, a 30-day saving using a 365-day basis is about $123.29. That calculation is $25,000 × 0.06 × 30 ÷ 365. It describes a simplified scenario, not your statement.
A single closing balance cannot reconstruct all the days before it. Deposits, withdrawals, loan repayments, rate changes and the effective link date can all change the answer. If your estimate differs from the bank’s figure, collect the period and assumptions before asking for an explanation. Do not treat the gap as a proven overcharge.
Ask for the missing evidence
A useful enquiry is specific: Please confirm which loan this account offsets, the effective linking date, the offset percentage, and how the benefit was calculated for this statement period. Please explain any days excluded and any action needed after my loan change.
If the response confirms an error, ask the lender to explain its correction and review the affected period. Save the request and reply together. If your loan has recently been refinanced, split or moved to another product, check the link again; ASIC highlights loan changes as a point where disconnection can occur.
Your next-step checklist
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Common questions
The checklist says confirmed. Has Ratey audited my account?
No. It records your answers about information you found. Only the lender’s records and a proper calculation can establish the actual interest charged.
Should I close the account if I cannot see a benefit?
First ask the bank to confirm the link and explain the calculation. Missing information alone is not a basis for deciding the account has failed.
Can I use today’s balance to calculate last month’s saving?
Only as a rough illustration if it was constant throughout. A reliable reconciliation needs the relevant daily balances, rates, dates and product rules.
Sources and assumptions
These primary sources support the explanations above. Examples use invented figures to show the calculation or decision; they are not available loan offers. Check your lender’s terms for your circumstances.
Calculations are estimates and do not establish borrowing eligibility. Read the calculation methodology.
Check the cost as well as the connection
A working offset still needs enough savings to cover any extra costs.