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 which 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 exchanging contracts, paying stamp duty, and transferring 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.

How do I complete my Verification of Identity?

At Qantas Money Home Loans, we provide a completely online end-to-end experience that allows you to verify your identity via our secure identification portal at a time most convenient to you.

If you prefer to complete an in-person ID check, simply visit your nearest Australia Post and request a verification of identity.

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.

Most First Home Owner Grants (FHOG) are only available for construction and it’s important to note that where a FHOG is available for an established build, we can’t consider it as part of your deposit amount. So, while you’ll be able to get the cash, it won’t be considered towards your deposit for your Qantas Money Home Loan application.

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 separately from your Qantas Money Home Loan. If approved, confirm with your conveyancer or solicitor that the funds will be made available at settlement.

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, that manual transfers can take 1-3 business days to process.

When 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 four to six weeks.

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

There are a few options 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 - by contacting Qantas Money Home Loans.

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

If you’re able to pay off your loan earlier than expected because of a windfall or smart saving, or if you’re moving to another lender, then yes, you will need to pay a discharge fee - you can find this here.

Likewise, if you exit or change a fixed rate loan during the fixed period, you may be required to pay a break fee (this doesn’t apply to variable rate loans). The amount you’ll need to pay varies based on loan times and amounts.

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. The default repayment is monthly, but you may make fortnightly or weekly repayments if you prefer (you will need to update your direct debit nomination form if using auto payments). 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 loan contract document pack.

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 a Qantas Money Home Loan. This website contains general advice only. This information has been prepared without considering your objectives, financial situation or needs. You should consider your circumstances before acting on this information.