What is Property Settlement?

When purchasing a property, settlement is the stage at which the seller receives payment for the property, it also marks the beginning of your Qantas Money Home Loan. In the case of refinancing, settlement is when you pay off your original home loan with your existing lender and start your new Qantas Money Home Loan.

What does settlement mean?

Settlement is the process where ownership of the property is transferred from the seller to the buyer. It is a legal process facilitated by the parties’ legal and financial representatives.  

During settlement, the buyer pays the remaining balance of the purchase price to the seller. The settlement date is typically set in the contract of sale by the seller.  

How long does settlement take?

The time it takes to complete the settlement process varies depending on the specific circumstances of the purchase and can differ between states in Australia. Typically, the settlement period is between 30 and 90 days from the date of the contract for sale. However, in some cases, a shorter or longer settlement period may be agreed upon by the parties involved.  

Several factors can impact the length of the settlement process, including the complexity of the transaction, the finance approval process, matters related to the title of the property, and any potential disputes. The completion date or settlement period for a property purchase will depend on the individual circumstances, ranging from weeks to months. 

What happens on settlement day? 

On the settlement date, the buyer becomes the registered owner of the property and takes possession of it, unless other arrangements have been made. 

How long after settlement can you move in?

The settlement process involves various steps, such as paying stamp duty, and transfer of the property title. It is important to work with a settlement agent, solicitor, or conveyancer to ensure a smooth and proper transfer of ownership.  

Please note that the specifics of the settlement process can vary based on the state or territory in Australia where the property is located. It is advisable to seek legal advice or refer to the relevant authorities in your jurisdiction for accurate and up-to-date information.  

What about First Home Owner Grants?

At Qantas Money Home Loans, we only lend for established houses, which means we don't lend for things like construction, land and off-the-plan builds.

If you are a first home buyer and you are purchasing a property which is newly built but never been lived in, you might be eligible for the First Home Owners Grant. Although we can't consider FHOG as part of your 'genuine savings' deposit, it can be used towards your overall contribution to the purchase (e.g. to help cover the likes of stamp duty).

Think you might be available for a FHOG? To find out more about the process and to check your eligibility, you can visit firsthome.gov.au. Remember, you’ll need to apply for the grant separate to your Qantas Money Home Loan, then if approved, confirm with your conveyancer or solicitor that the funds will be made available at settlement.  

Keep in mind that the Bank can process FHOG so that the funds are available at settlement. If the FHOG isn't processed by the Bank, then you will need to go through the LTO in your state/territory after settlement.

Once your application has been submitted, our home loan expert swill advise you where to submit the completed FHOG application and any other required supporting docs.

How do home loan repayments work?

How you choose to manage your Qantas Money Home Loan repayments is entirely up to you. For example: 

• You can choose to have repayments automatically deducted from an offset account, nominate a third-party bank account for automatic deductions, or manually transfer money. Keep in mind though, that manual transfers can take 1-3 business days to process. 

• If you have an offset loan, the repayments will be automatically deducted from the offset funds.

• Repayments are set up monthly as the default but can change to fortnightly or weekly post-settlement

• If the customer has an offset loan, the repayments will be automatically deducted from the offset funds (ie there's no choice)

What does settlement occur?

If you’re purchasing, settlement depends on the vendors, conveyancers - and you. But generally, you negotiate the settlement date with the seller when you’re making your purchase offer. This is often anywhere between 30 and 90 days. 

If you’re refinancing, the settlement date depends on when both banks have everything they need to transfer the loan. This is usually worked out by our solicitor and your current bank’s settlement department and can take up to 4 – 6 weeks. 

Why can't I just complete my home loan documents online or email them to you?

While we understand that completing your home loan documents online or via email would be more convenient, legislation means we require your physical signature on the documents. While we’re trying to eliminate paper from the home loan process, we still need you to mail the documents for the time being.

Can I still add or remove an offset account if I change my mind?

There are a few stage gates that explain what needs to happen depending on what stage your loan is at:

1. Before your loan has been approved - an assessor needs to be notified so that the product can be updated in the application.

2. Pre-settlement and loan documents have been issued to you - an assessor will need to update the loan product and a new loan contract will need to be issued and signed prior to settlement. There is a re-contracting fee for this to happen - you can find this here.

3. Post-settlement - a loan conversion will need to be completed as an offset account can't be just added or removed. There is a product conversion fee and the process needs to be completed by contacting the Qantas Money Home Loan experts so that the paperwork can be sent to you to complete (this is not able to be completed through your online home loan application)

Will I be charged a fee if I pay off my loan sooner?

If you've decided to discharge your loan, you will need to pay a $325 discharge fee. There will also be a discharge of mortgage fee (government fee) if looking to discharge the mortgage (you can actually pay off a loan and not discharge the mortgage - 2 different things).

There's a set admin fee to break a fixed loan early, and can also be early repayment adjustment costs.

When is my first home loan repayment due?

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. If you’ve elected 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. 

When do I get my settlement forms?

You’ll receive settlement forms in your document pack. These include:   

• Citizenship Form 

• Foreign Tax Form 

• Foreign Tax Glossary 

• Australia Post Verification of Identity Form 

Need more information on settlement?

Click on these links to find out more:

• Offset Product Guide

• Accessing Your Account

^* You have to be a Qantas Frequent Flyer member to apply for the Qantas Home Loan. This information has been prepared without considering your objectives, financial situation or needs. You should consider your circumstances before acting on this information.