The Home Loan Process
Step 7: Settlement
If
you’re purchasing, it is usual for settlement
to occur on the date specified in the Contract.
If purchasing, you will need to notify your Conveyancer
or Solicitor that your home loan has been formally and
unconditionally approved. They will then prepare the
necessary documentation to enable the property to be
legally transferred to you.
Your Conveyancer or Solicitor will contact the lender
to arrange a time for settlement in line with the date
specified in the Contract.
If you are re-financing, settlement is the date that your old loan is repaid and your new loan starts. As soon as you have returned your loan documents, your current lender is contacted and asked to confirm a ‘payout figure’ and a date for settlement.
A few days prior to settlement, your Conveyancer or Solicitor will advise you how much you will need to contribute for the balance of your deposit and all the government fees and charges. In most cases, they will request that you provide them with a Bank cheque the day before settlement.
Your
Conveyancer or Solicitor will notify you once settlement
has taken place. You can then collect the keys.
Within 2 weeks after settlement,
you should receive from your new lender a letter confirming
settlement of your home loan.
The letter will also detail how funds were disbursed
at settlement and when your first home loan repayment
is due.
You will receive any ATM Cards, Credit Cards, Cheque
Books, PIN and passwords that apply to your new home
loan package. For security reasons, these items are
usually posted separately
.
Depending on the type of loan you choose, you will also
receive regular home loan statements, either monthly,
quarterly, or twice-yearly.
It is important to be fully protect. We recommend you seek
professional advice to ensure that you have adequate
death, disability, income and general risk insurance
to cover your loan borrowings and repayments.