Your Big Day — Settlement Explained
After months of saving, signing and waiting, settlement day is the final step before you officially become a homeowner.
It’s the day your lender pays the remaining balance to the seller, the property title transfers to your name, and the keys are finally yours.
Here’s what actually happens behind the scenes — and what you should be ready for.
1️⃣ What “Settlement” Really Means
Settlement is the legal and financial completion of your home purchase.
It involves four main players:
- You (the buyer) – confirm funds and insurance are ready.
- Your lender – transfers the loan amount to the seller’s lender or solicitor.
- Your conveyancer/solicitor – handles paperwork and confirms ownership transfer.
- The seller’s solicitor – ensures the seller is paid and the title is released.
All of this usually happens electronically now through PEXA (Property Exchange Australia).
2️⃣ When Settlement Happens
The exact date is set in your Contract of Sale.
For most purchases, settlement occurs 30–90 days after signing, unless you’ve negotiated otherwise.
Your conveyancer coordinates the timing so everyone is ready on the same day.
3️⃣ What You Need to Do Beforehand
- Final inspection: check the property is in the same condition as when you bought it.
- Arrange insurance: building insurance should be active before or on settlement day.
- Confirm your funds: ensure your contribution (deposit balance and costs) is cleared in your solicitor’s trust account.
- Utilities setup: organise electricity, internet and gas transfers ahead of time.
Tip: Do your final inspection 24–48 hours before settlement to leave time for issues to be resolved.
4️⃣ What Happens on the Day
Most settlements now occur electronically — no in-person meetings needed.
On the day:
- Your lender pays the outstanding balance to the seller’s lender or solicitor.
- The property title is legally transferred into your name.
- Stamp duty (if applicable) is paid automatically through PEXA.
- Your conveyancer confirms everything is finalised.
Once complete, your conveyancer will call or email with the words every buyer dreams of:
“Congratulations, settlement is complete — the home is officially yours!”
5️⃣ When You Get the Keys
As soon as funds are cleared and the title transfers, your real estate agent is notified and can hand over the keys.
In most cases, you’ll get them the same afternoon or by the next morning.
If you bought a new build or off-the-plan property, key collection may happen at the builder’s office once the completion certificate is issued.
6️⃣ Common Settlement Delays (and How to Avoid Them)
- Incomplete paperwork: double-check lender and conveyancer documents early.
- Funds not cleared: make your transfer a few days early to avoid banking cut-offs.
- Incorrect contract details: ensure names and loan amounts match exactly across documents.
- Last-minute valuation issues: don’t make major credit changes before settlement.
If delays happen, your conveyancer will negotiate a new settlement time — but extra interest or penalty fees may apply, so preparation is key.
7️⃣ After Settlement – What to Expect
- You’ll receive a settlement statement showing how funds were distributed.
- Your lender registers the mortgage on the property title.
- Your broker may review your rate or set up offset/redraw features.
- Update your address for mail, licence, and insurance.
8️⃣ Celebrate Responsibly (But Definitely Celebrate!)
Becoming a homeowner is a major milestone — it deserves recognition.
Take a moment to celebrate how far you’ve come, but also plan ahead:
Set your first mortgage repayment reminder, review your budget, and enjoy the sense of security you’ve earned.
9️⃣ Quick Checklist – Settlement Success
- ☑️ Loan documents signed and returned
- ☑️ Building insurance active
- ☑️ Final inspection complete
- ☑️ Conveyancer confirmed settlement date
- ☑️ Funds cleared in time
- ☑️ Utilities set up
Next Steps – Smooth Sailing After Settlement
Once the keys are in hand, take a few days to settle in, then review your loan setup.
Making extra repayments early or using an offset account can shave years off your loan term.
Need help planning after settlement?
Chat with the Loan Location team about post-settlement loan strategies and ways to save interest long term.