You’ve gone through the home buying journey and now you’re almost there—settlement day! But what exactly happens on settlement day, and how can you make sure nothing goes wrong?
What Is Home Loan Settlement?
Settlement is when your new home officially becomes yours. It’s the legal process where:
You pay the rest of the purchase price
The seller gets their money
The property is transferred to your name
You get the keys!
For example, if your home costs $500,000 and you’ve paid a $50,000 deposit, you’ll pay the remaining $450,000 (plus fees like conveyancing and inspections) on settlement day.
How Long Does Settlement Take?
The settlement period usually lasts between 4 to 6 weeks, starting from when you sign the Contract of Sale until the big day you take ownership.
Here’s a quick guide by state:
| State/Territory | Typical Settlement Time |
|---|---|
| NSW / VIC | 6 weeks (can be negotiated) |
| QLD / SA / WA | 4–6 weeks or as agreed |
| NT | 30–90 days |
| ACT | 4 weeks |
| TAS | Negotiable |
| Vacant land / Off-the-plan | 56 days or 12–18+ months |
What Happens on Settlement Day?
Settlement Don’t worry—you don’t need to be there. Your conveyancer or solicitor and lender handle everything for you.
Here’s what goes down:
Your conveyancer meets the seller’s conveyancer.
- Your lender releases the funds.
- Your name gets registered on the property title.
- The seller’s mortgage (if any) gets removed.
Your new mortgage is registered.
Final checks are done to make sure all conditions are met.
Pro Tip: Make sure your home is insured by this day—some lenders won’t release funds without it.
What You’ll Pay On Settlement Day
Besides the remaining balance, here’s what you might also need to cover:
- Stamp duty (some states offer concessions for first-home buyers)
- Conveyancing fees
- Pest & building inspection costs
- Mortgage registration fee
- Lenders Mortgage Insurance (LMI) if applicable
What is PEXA?
PEXA (Property Exchange Australia) allows for electronic property settlements. It speeds things up, reduces paperwork, and is now used in most states.
However, not all lenders use PEXA, so sometimes manual settlement is still required—and that can take a bit longer.
What Can Go Wrong?
- Even on the final day, things can fall apart if:
- Funds aren’t ready or released in time
- Required documents are missing
- Property has unresolved legal issues (like caveats)
- Lender or conveyancer misses a step
- Pre-settlement inspections reveal damage
How Can You Prepare for Settlement?
- Stay in regular contact with your broker and conveyancer
- Make sure you have enough funds for everything
- Get building & contents insurance in place
- Schedule a final inspection of the property
- Ensure all documents are signed and conditions met
Can You Move In on Settlement Day?
You technically can, but we recommend waiting a few days. Sometimes settlements get delayed—don’t book the moving van just yet!
After Settlement
- You get the keys
- Your loan repayments start—usually after a month
- Your name is officially on the title
- You’re a proud homeowner
Need Help With Home Loan Settlement?
The process can feel overwhelming—especially if it’s your first home. But that’s where Goodwill Finance steps in.
We’ll guide you through every step, from loan approval to settlement and beyond.
Ready to make your dream home a reality?
Call Goodwill Finance today or fill out our online assessment form and let’s make your home ownership journey stress-free.
Contact us now
Your Home. Your Dream. Let’s Make It Happen.
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