Property Settlement Timeline
If you’re about to purchase a property, you can expect the process to take about 4-6 weeks (differs between states). Here is a brief run-down:
Two weeks before you go property searching: Have a pre-approval in place.
Day 1: Make an offer within the limits of your approved amount.
Day 3: Seller should accept within a few days. Get the contract of sale to your conveyancer and your broker as quickly as you can. Your broker will order the valuation on behalf of the bank. Meet with your conveyancer and discuss the terms of the contract including whether to exchange with a ‘cooling-off’ period or to wait for approval before exchanging. During this time do a pest and building inspection – this will be at your own expense.
Day 6: Valuation should be back with the lender. Your broker will be gathering any supporting documents required on the pre-approval and sending them to the lender for formal approval.
Day 10: Your finance application should be approved by now. Your broker will send a copy of the formal approval to you and your conveyancer.
Day 14: Loan offers will be issued by the lender to you. These are usually sent via post although it is becoming more common to have documents electronically signed via DocuSign or similar. You should sign these loan documents as soon as possible. Call your broker if you have any questions so you can run through the documents with them.
Day 15: Return the loan documents to the bank. This can be automatic if you used electronic signed documents, but if not then use express post. Keep the tracking number so you can track the documents back to the lender. Those are very expensive documents! Include the building insurance policy in the loan documents as well.
Day 17: The lender will acknowledge the receipt of documents. All being well with the documentation, your lender will contact both parties’ solicitors to talk settlement – an agreed date and time is organised; most settlements occur online these days via PEXA (Property Exchange Australia).
Three days prior to settlement: Speak with your solicitor regarding what the exact amount of your contribution will be. I like to add $1K to the amount because there’s nothing worse than trying to get extra funds one hour before settlement (leftovers will be refunded to you).
Settlement day: Properties usually settle in the afternoon. Now you can go to the real estate, pick up your keys, and let the fun begin!
Please note the days quoted are an approximation as an example of what to expect, and can change with credit wait times and other factors.
