Westpac Banking Corp. will refund approximately A$11 million to customers affected by a mortgage processing error.
The bank said Dec. 14 that it found 13,000 owner-occupier interest-only variable home loans affected by the error. The error led to customers continuing to make interest-only repayments on their mortgage instead of being switched to principal and interest repayments at the end of the interest-only period.
The error predominantly affects loans with an interest-only period that expired between 2009 and 2016.
Westpac is also reviewing interest-only investor loans that may have been impacted by the issue. The bank expects the remediation program for all customers to take about 12 months to complete.
