Introduction
In recent months, the Australian Securities and Investments Commission (ASIC) has intensified its scrutiny of the mortgage industry. From probing how banks manage offset accounts to investigating misconduct at lenders like RAMS, ASIC’s actions highlight both the risks borrowers face and the protections available.
For borrowers across Sydney, Melbourne, Brisbane, Perth, Adelaide, Hobart, Canberra, and Darwin, these developments reinforce the importance of working with a mortgage broker who prioritises transparency, compliance, and client outcomes.
ASIC’s Focus Areas in 2025
1. Offset Accounts Under the Microscope
Offset accounts can help borrowers save thousands in interest — but only if managed correctly. ASIC has launched a probe into whether lenders are failing to pass on the full benefit to customers.
- Why it matters: Offset accounts are marketed as a key loan feature, but borrowers may not be reaping promised savings.
- How brokers help: By comparing lenders, brokers identify offset products that truly reduce your interest costs.
2. RAMS and Westpac Misconduct Cases
ASIC has taken legal action against RAMS (a Westpac subsidiary) for alleged systemic misconduct, including use of falsified loan documents.
- Why it matters: Misconduct undermines trust and leaves borrowers vulnerable.
- How brokers help: Brokers act as a buffer, ensuring your application is accurate, compliant, and in your best interests.
3. Hardship Support Failures
ASIC has also flagged flaws in how banks support borrowers in financial hardship. Too many Australians report delayed or inadequate responses when seeking relief.
- Why it matters: Life events like job loss, illness, or separation can affect repayments. Borrowers need timely support.
- How brokers help: Brokers advocate on your behalf, pushing lenders for fair hardship solutions.
Borrower Risks in Today’s Market
Despite falling interest rates — with BOQ’s 4.89% two-year fixed rate and 18 lenders offering sub-5% deals — borrowers still face risks:
- Misleading loan features
- Poor hardship response
- Hidden fees embedded in “comparison rates”
- Limited transparency around how offset balances are applied
How Mortgage Brokers Protect Borrowers
- Unbiased Advice Brokers compare 50+ lenders rather than pushing one bank’s products.
- Compliance & Accuracy ASIC regulations require brokers to act in your best interests, documenting every recommendation.
- Transparency Brokers explain offset accounts, fees, and repayment structures in plain language.
- Advocacy If a lender delays or denies fair treatment, brokers escalate on your behalf.
Capital City Insights
- Sydney: High loan balances make offset accounts crucial for maximising savings.
- Melbourne: Lender competition is strong, giving borrowers more leverage.
- Brisbane: First home buyers can combine grants with transparent loan features.
- Perth: Equity growth highlights the need for honest refinancing advice.
- Adelaide: Smaller loans mean every fee or hidden cost matters more.
- Hobart: Offset accounts can help accelerate debt reduction in equity-rich markets.
- Canberra: Public sector workers benefit from stable incomes, but still need transparency.
- Darwin: Regional lending policies can vary widely — broker guidance is essential.
Real Client Story: Maria in Sydney
“I was told my offset account would save me thousands, but I couldn’t see the difference. My broker reviewed the loan, uncovered hidden fees, and refinanced me to a lender where the offset actually worked as promised. I’m now saving $250 a month.”
The Bigger Picture: Why ASIC’s Actions Matter
ASIC isn’t targeting borrowers — it’s targeting lenders who don’t play fair. These investigations:
- Force banks to be more transparent
- Give brokers leverage to demand better terms
- Protect borrowers from systemic misconduct
But relying on regulators alone isn’t enough. Borrowers need advocates in their corner — and that’s where brokers come in.
Don’t Be Caught Out
If you’re unsure whether your lender is passing on rate cuts, applying offset correctly, or charging hidden fees, now is the time to review your mortgage. With sub-5% rates available, a proactive review could save you thousands.
📅 Book Your Free, No-Obligation Chat
At Money Tree Mortgage Brokers, we don’t just compare rates — we protect you from poor practices, ensure compliance, and advocate for your best interests. With ASIC holding banks accountable and brokers opening doors to 50+ lenders, you deserve transparency, clarity, and confidence in your mortgage.
