In recent months of 2005 the Australian Securities and Investment Commission (ASIC) has forced the closures of more than 100 Australian website based home loan calculators, in an attempt to stop the influx of misleading communication to consumers about line-of-credit home loans. The calculators were on the websites of popular Australian financial institutions, including banks, building societies, credit unions and mortgage brokers.

It is a known fact that line-of-credit loans cannot be repaid any faster than a traditional home loan unless extra repayments are made but it would seem that many home loan calculators portrayed that consumers could save thousands of dollars and cut years of their mortgage.

It is important for consumers to understand that these kinds of calculators often portray that line-of-credit loans could result in savings for borrowers regardless of the type of loan taken out and how much is made in repayments. This is particularly dangerous for people considering refinancing because of the costs associated with refinancing. Those who refinance need to be certain that these costs are offset and outweighed by any savings made on interest and repayments. Some calculators are inaccurate and even falsify the actual financial position.

Some financial institutions and mortgage brokers, promise through their websites that years can be cut from the average home loan if borrowers deposit their income into an account that offsets their mortgage – a line of credit loan - and use a nil-interest credit card for their expenses, with a once per month repayment. But line-of-credit loans are usually far more expensive than traditional fixed or variable home loans, making it impossible for consumers to repay them faster unless additional and more regular repayments are made.