The short answer
Before settlement: arrange building insurance, keep your loan on track by meeting the lender’s conditions, check the final figures with your conveyancer, do the final inspection, and organise utilities and the move. Moneysmart describes settlement as the day ownership transfers into your name and your mortgage begins.
As soon as the contract is signed
- Tell your broker or lender. Send the signed contract so formal approval can move ahead. Watch the finance date in the contract if there is one.
- Arrange building insurance. Consumer Affairs Victoria says your lender will recommend building insurance from the date the seller signs the contract. Ask your conveyancer when the risk passes to you, and don’t assume the seller’s insurance covers you. Moneysmart notes insurance may be a condition of your home loan.
- Expect a valuation. Your lender will usually arrange a valuation.
- Check your conveyancer or solicitor. See what a conveyancer does.
In the weeks before settlement
- Meet the loan conditions. Send anything the lender still needs promptly. Sign and return the loan documents as soon as they arrive, after reading them.
- Don’t change your finances. Avoid new credit, a new car loan or changing jobs before settlement without talking to us first. Any of these can affect an approval.
- Check boundaries and the plan. Consumer Affairs Victoria says your conveyancer or solicitor will send a plan of the land so you can check measurements and boundaries against the title.
- Know what you owe on the day. Ask your conveyancer for the settlement figures: the balance of the price, adjustments for council and water rates, and their fees. Have the funds ready in time.
- Stamp duty. Check how much and when it’s due in your state. Our stamp duty calculator covers each state and territory.
The final inspection
Consumer Affairs Victoria says you’re entitled to inspect the property at any reasonable time during the week before settlement. Rules elsewhere differ, so check your contract and with your conveyancer. Arrange it with the agent.
- Check that everything listed in the contract is there and in the right condition.
- Test what you can: lights, taps, hot water, heating and cooling, ovens, the dishwasher, garage doors, locks and windows.
- Look for new damage since the sale, such as marks left by the move out.
- Check that anything the seller agreed to remove has gone.
Under most contracts the seller must hand over the property in the same condition as when it was sold. Check your contract. If something is wrong, tell your conveyancer before settlement, not after.
The last few days
- Book electricity, gas, water and internet connections from settlement day.
- Book removalists, and redirect your mail.
- Confirm with the agent where and when to collect the keys.
- Stay reachable by phone on settlement day.
Buying and selling at once?
If you’re also selling, the two settlements need to line up. Read our guide to simultaneous settlement, or our bridging loan calculator if you might buy first.
Mortgage broker at My Finance Consultants. Daniel compares home loan options from a panel of 40+ lenders for refinancers, investors and home buyers, by phone, evenings included. About Daniel
General information only. It doesn’t consider your objectives, financial situation or needs, and it isn’t tax, legal or financial product advice. Lending criteria, fees and charges apply.