You’ve got pre-approval. Now what?
Settlement day is when your property officially becomes yours, but for many buyers it can feel a little anticlimactic. There’s no meeting room, no paperwork to sign on the day, and often no clear sense of what’s actually happening behind the scenes.
If your settlement date is approaching, here’s a simple breakdown of what happens on settlement day, what you need to do (and what you don’t), and what comes next once everything is complete.
Settlement day is the final step in the property purchase process. It’s when ownership of the property is legally transferred from the seller to you as the buyer. If you’re using a home loan, your lender provides the funds and is registered on the title until the loan is repaid.
Settlement is coordinated by your conveyancer or solicitor, the seller’s representative, and the lenders involved. These days, most settlements are completed electronically, meaning everything happens behind the scenes without you needing to attend.
On settlement day, a few key things happen in a set order.
Funds are transferred from your lender and your contribution to the seller. This usually includes the balance of the purchase price, adjustments for council rates or water charges, and any applicable stamp duty depending on your state.
Once funds are confirmed, the transfer of ownership is lodged with the relevant state authority. At the same time, your lender’s mortgage is registered against the property.
Once all parties confirm settlement is complete, the real estate agent is authorised to release the keys to you. At that point, the property is officially yours.
In most cases, no. If you have a conveyancer or solicitor acting on your behalf, there’s nothing you need to sign or attend on the day.
We usually recommend contacting the real estate agent directly on settlement day to arrange key collection once settlement has been confirmed. Timing can vary slightly, so it’s best to wait for confirmation before heading to the agency.
Your loan account is drawn down at settlement, meaning the funds used to purchase the property are debited to your new loan.
Your first repayment is typically due around 30 days after settlement. The exact date, amount, and repayment frequency will be confirmed by your lender shortly after settlement, and repayments will be deducted from the account nominated in your loan documents.
Once settlement is complete, you can move in, renovate, or rent out the property depending on your plans.
From here, ongoing costs come into play, including loan repayments, council rates, utilities, insurance, and strata fees if applicable. This is also the point where it’s worth making sure your loan structure still suits your cash flow and future goals.
Settlement isn’t the end of the journey with Finestream. We continue to support you well beyond settlement to make sure your loan keeps working for you.
Our team can help with changes to repayments, updating personal details, reviewing your loan to ensure you’re still on a competitive rate, and adjusting your structure as life changes.
If you ever have questions about your loan, future plans, or refinancing options, we’re only a call or email away. That’s The Finestream difference.
