The $55m offset warning, the refinancing squeeze, and buyer leverage
The RBA kept rates on hold this month, but there is still plenty happening for borrowers and buyers. Here are four developments worth having on your radar.
Banks are making concerning errors with offset accounts
Your repayments can look perfectly normal even when your offset account is not delivering the savings it should. That is one of the concerning findings from a recent review by ASIC, the financial services regulator. When offsets do not operate correctly, a bank may still collect the same repayment but allocate more to interest and less to principal, which makes the problem hard to spot.
ASIC examined eight banks covering more than 70% of Australia's home loan market. Practices differed, but every bank reviewed had weaknesses in how offsets were set up, monitored, or managed. Banks paid more than $55 million in compensation for failures over the two years to August 2025, with more expected.
The takeaway is not that offset accounts do not work. Used correctly they can reduce interest and speed up repayments. It just pays to understand exactly what your loan promises, and a home loan review can help you check whether your offset is doing its job.
Falling property prices could make refinancing harder
A lower property value does not just affect what your home is worth, it can change your refinancing options. KPMG now forecasts national house prices to fall 1.1% in 2026 before rebounding 3.4% in 2027.
The key number is your equity. Say your home was worth $800,000 with a $600,000 mortgage, that is 25% equity. If the value fell to $730,000 while the loan barely changed, equity would drop below 20%. Some lenders offer fewer options once the loan is more than 80% of the property value, and lenders mortgage insurance may apply.
That does not automatically put refinancing off the table. It means timing, valuation, and lender choice matter more in a falling market. Checking your current loan to value ratio is a sensible first step.
Why buyers have more bargaining power
More properties are coming to market and taking longer to sell, giving buyers more room to be selective and negotiate. According to SQM Research, new listings rose 5.1% in July compared with June and were 15.9% higher than a year earlier, with older listings also rising.
When there is more to choose from, there is less pressure to make an aggressive offer out of fear of missing out, and homes listed for several weeks may offer more scope for negotiation, particularly if the vendor is motivated. Having finance organised strengthens your position by showing you can genuinely proceed. That said, desirable homes still attract competition and conditions vary between suburbs.
Three car loan myths that could cost you money
Car finance can look straightforward, but focusing on the wrong things could leave you paying more, or affect your plans to buy property.
- Myth 1: the lowest interest rate wins. Fees also affect what a loan costs, so the comparison rate is often more useful when comparing like for like. Shopping around can save thousands.
- Myth 2: lower repayments mean a cheaper loan. A longer term reduces regular repayments while increasing total interest. A balloon payment can also make repayments look smaller but leaves a lump sum at the end and usually increases the total cost.
- Myth 3: a car loan will not affect a home loan. Lenders look at existing debts, income, and expenses to work out borrowing capacity, so car finance today can influence how much you can borrow for property later.
More homes are hitting the market while falling prices are changing the refinancing equation. If your property or finance plans are shifting too, book a free appointment and we will make sure you are ready for what comes next.