How a Simple Mortgage Makeover Saved a Client $50,000

A case study in why regular mortgage reviews are essential

Last month, I completed what seemed like a routine mortgage makeover for a client, but what I discovered left both of us stunned. A simple banking error had cost this hardworking family over $50,000 in unnecessary interest payments, and they had no idea it was happening.

The Discovery That Changed Everything

When Sarah and Mark* (*names changed for privacy) contacted me for a complimentary mortgage makeover, they thought their finances were in good order. They’d been with their bank for two years, diligently building up their offset account while making regular mortgage payments.

On paper, everything looked perfect:

• Mortgage balance: $400,000
• Offset account balance: $400,000
• Expected monthly interest: $0 (offset should have cancelled all interest)
• Actual monthly interest being charged: $2,000

You read that correctly – despite having enough in their offset account to completely eliminate their interest payments, they were being charged $2,000 every single month.

How Could This Happen?

During my mortgage makeover process, I always review the actual account structure, not just the statements clients receive. What I found was shocking: the bank had never properly linked their offset account to their mortgage.

For over two years, Sarah and Mark had been:

• Making their monthly mortgage payments
• Paying $24,000 per year in completely avoidable interest
• Trusting that their bank had set everything up correctly

The offset account was there, the money was there, but the critical connection that would have saved them thousands was missing.

 

The Fight for Justice

Armed with this discovery, I immediately contacted the bank on behalf of my clients. This wasn’t just about fixing the issue going forward, this was about recovering the substantial amount they’d overpaid due to the bank’s error.

The initial response was predictable: “We’ll look into it.” But I persisted, providing detailed documentation showing:

• When the offset account was established
• The clear intent to offset the mortgage interest
• The bank’s failure to properly configure the accounts
• The exact financial impact of their error

The $50,000+ Result

After several weeks of negotiations and escalations, the bank finally acknowledged their mistake. The result? Over $50,000 credited back to Sarah and Mark’s mortgage account, representing every dollar of interest they should never have paid.

But the real victory was Sarah’s reaction when I called with the news: “Johnny, we can’t believe this happened, but we’re even more amazed that you found it and fought for us. We had no idea we were entitled to this money back.”

Why Regular Mortgage Makeovers Matter

This case perfectly illustrates why I offer complimentary annual mortgage makeovers to all my clients. Banks make mistakes, more often than you’d think. Without regular professional reviews, these errors can cost you thousands or even tens of thousands of dollars.

Common issues I discover during mortgage makeovers:

• Incorrectly linked offset accounts
• Outdated interest rates
• Inappropriate loan structures
• Missing professional package benefits
• Inefficient investment property setups

What This Means for Homeowners

If you have an offset account, ask yourself:

• Are you receiving monthly statements showing your offset benefit?
• Do you understand exactly how much interest you’re saving?
• When did someone last review your entire mortgage structure?

Sarah and Mark’s story isn’t unique. I’ve seen similar errors with redraw facilities, incorrect loan-to-value ratio calculations, and even cases where clients were paying rates significantly higher than they qualified for.

The Mortgage Makeover Process

My complimentary mortgage makeover includes:

1. Complete account structure review
2. Interest rate comparison and negotiation opportunities
3. Offset and redraw facility optimisation
4. Professional package eligibility assessment
5. Long-term strategy alignment with your goals

This comprehensive review typically takes 30-45 minutes and has saved my clients an average of $6,000-$8,000 annually, sometimes much more, as Sarah and Mark discovered.

Your Next Steps

If you haven’t had a professional mortgage review in the past 12 months, you could be missing significant savings opportunities or worse, paying for banking errors you don’t even know exist.

The mortgage makeover that saved Sarah and Mark over $50,000 started with a simple phone call. Don’t let banking errors cost you thousands, contact me today for your complimentary mortgage makeover.

Ready to discover what your mortgage makeover might reveal?

Call me directly on 0402 545 187 or email johnny@iconicms.com.au

Your mortgage makeover could be the best financial decision you make this year.

About the Author: Johnny Dastidar is the Managing Director of Iconic Mortgage Solutions, Canberra’s specialist mortgage broking firm. With over a decade of experience at major Australian banks including ANZ, Commonwealth Bank, and Westpac, Johnny has the insider knowledge to spot issues other brokers miss. His complimentary mortgage makeover service has saved Canberra clients hundreds of thousands of dollars in unnecessary fees and interest payments.

 

 

 

Social Media Post:

CASE STUDY: How I uncovered a banking error and saved a client $50,000+

A couple came to me for a routine mortgage makeover – they had:

• $400k mortgage
• $400k in offset account
• Should have been paying $0 interest monthly
• Were actually paying $2,000 monthly

The bank had NEVER connected their accounts properly!

For 2+ years, they unknowingly overpaid $24k annually in avoidable interest.

I fought the bank and secured full compensation: $50,000+ credited back to their mortgage.

The client’s reaction: “We had no idea we were entitled to this money back.”

This is WHY I offer free annual mortgage makeovers. Banks make mistakes – more than you think.

When did you last have a professional review your mortgage structure?

• Your makeover could uncover thousands in savings
• Call 0402 545 187 for your complimentary mortgage makeover

#CanberraMortgageBroker #MortgageMakeover #BankError #ClientSuccess #OffsetAccount #IconicMortgageSolutions

 

 

 

 

 

 

 

 

Google Review:

Outstanding service – Johnny saved us over $50,000!

Client Name. – Verified Google Review

We contacted Johnny for what we thought would be a simple mortgage review, but he discovered something incredible. Our bank had failed to properly connect our offset account to our mortgage account.  Foe more than two years we were paying $2,000 monthly in interest that should have been $0!

Johnny didn’t just identify the problem he fought the bank on our behalf and secured over $50,000 compensation for their error. We were completely shocked that this had happened and even more amazed that Johnny found it.

His mortgage makeover service is incredible value, completely free but saved us more money than we ever imagined possible. We had no idea we were entitled to this compensation until Johnny explained everything clearly and handled all the negotiations.

If you’re looking for a mortgage broker who genuinely cares about your financial wellbeing and has the expertise to spot issues others miss, Johnny is your person. We can’t recommend Iconic Mortgage Solutions highly enough.

Professional, knowledgeable, and truly advocates for his clients. Thank you Johnny!