Get Ready To Rumble: Settlement
Get Ready To Rumble: Settlement
Settlement! It’s the special moment, where the keys become yours. Where you become a homeowner. Or, if you’re refinancing, when your new loan begins. Which is also very exciting if somewhat less dramatic.
Let’s break it down so you know what to expect.
What settlement is
If you’re purchasing, settlement is when money goes from you and us, to the seller. The seller gets all the money, you get all the property (!), and your home loan begins. You won’t have to handle any cash. For safety’s sake, we and the conveyancers move it around securely for you.
If you’re refinancing, settlement is when we pay your old lender out for your original home loan, and your new Up Home loan begins.
When settlement happens
When you’re purchasing, settlement depends on the vendors, conveyancers and you. Generally, you negotiate the date with the seller when you’re making your purchase offer – usually settling at between 30 and 90 days. Our solicitor / conveyancer will try their best to meet that date.
If you’re refinancing, the settlement date depends on when both banks have everything they need to transfer the loan. This is generally worked out between the two lenders and can take up to 4 – 6 weeks from the time you notify your old lender.
Step one: getting ID-verified
We’re about to loan you a lot of money, so before we settle, we need to make sure that you are you.
In most parts of Australia, you can get someone from ZipID to come verify your identity at your home or work. You can book your appointment on the ZipID website – just use the 6 digit code in your loan contract so they know it’s for us and you don’t have to pay. The ID check itself will only take around five minutes but you book a two hour window.
If you prefer, or if you’re outside ZipID’s service area, you can get your ID verified with Australia Post.
There’s info on this option in your loan document pack, but you’ll need to go into an Australia Post outlet, pay a small fee, and then send us the receipt and your bank details so we can reimburse you.
Forms forms forms
There’s a little bit of paperwork yet to come from your conveyancer or solicitor, but their job is to walk you through it. We’re here too, if you need us!
Fair warning: some of it may be on paper. Trust us, we’d love to completely eliminate trees from the home loan process. We’re working on it. But we may still have to get your actual physical signature (“wet signature”) on a few different docs, depending on where you live.
The big moment (and the keys!)
At the time set by all those conveyancers and solicitors and bankers and stuff, you’ll be notified that your settlement is done. It might all be as low-key as an app notification through PEXA, the online platform where most conveyancing transactions and lodgements take place.
But it’s a big deal. Congratulations!
As soon as you’ve been notified that settlement is complete, those keys belong to you. It’s between you and the seller (or their real estate agent) to arrange how to go get them. Maybe pick up a bottle of something nice on the way back.
Making your first repayment
When your loan is all set up, your Up Home account will live in your app and you can set up automatic transfers into this account.
Your first home loan repayment is due exactly one month after your loan settles. So if your loan settles on 1 May, your first repayment is due on 1 June.
Even if you’ve chosen to pay your loan off weekly or fortnightly, you just need to have paid what would’ve been the monthly repayment by the end of the month – we don’t mind how you split it.
We’ll show you the balance of your loan, including any redraw available to you if you choose to pay in extra over time.
(Not sure what that is? Fair. Here’s an explainer).
I need more help
Your own conveyancer or solicitor is the best person to answer your settlement related questions. After all, that’s what you’re paying them for.
Or, you can contact our digital legal partners LeadPoint DMS:
If you’re still hitting information roadblocks, (though we don't think you will), you’re also welcome to get in touch with us:
Some Light Reading
These handy (yet often spectacularly wordy) links have more info and forms you may need as you get closer to the big moment. But if you get lost, chat with us! It’s what we’re here for.
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