One of the more baffling features of the bank profit reporting season is the surprising multi-billion dollar jump in the amount of money customers of the big banks are holding in their mortgage offset accounts . At a time when many Australians are struggling with a higher cost of living, many bank customers are using the surplus savings they accumulated during the pandemic to blunt the impact of higher home loan rates .
These savings are proving especially useful as their low-cost fixed-rate home loans mature (which don’t offer mortgage offsets), and bank customers find themselves paying a much higher interest rate on their variable loans. The sums involved are significant. In its 2023 results presentation, Westpac said Australian home loan borrowers added $3 billion to mortgage offset accounts in the six months to September 30.to $43 billion at the end of September, up from $41 billion in March, and from $39 billion a year ago. ANZ also reported that offset account balances jumped to $42 billion up from $39 billion a year ag
Source: Loan Digest (loandigest.net)
Bank Profit Reporting Mortgage Offset Accounts Australians Higher Home Loan Rates Savings Pandemic Low-Cost Fixed-Rate Home Loans