Everything you need to know about settlement
Settlement is the final step before you become a home owner (or when your new loan begins). We break it down so you know what to expect.
November 12, 2020 • 10 min read
Settlement is the final step in the home loan process: it’s when the seller receives their payment for the property, and when your Tiimely Own home loan begins.
Or if you’re refinancing, it’s when your existing lender gets paid out for your original home loan (by us), and when your new Tiimely Own home loan begins.
I heard Tiimely do digital Verification of Identity (VOI) – tell me more
We’re about to loan you a lot of money, so we need to make sure that you are you.
We've partnered with to verify your identity using biometrics – the same tech that allows you to unlock your phone using facial recognition or your thumbprint.
Once you've been approved, you'll receive a personalised link via SMS from GBG to verify your identification. It's as easy as taking a selfie with 2 types of identity documents – we recommend a passport and a driver's license.
I'm having troubleshooting my VOI
If you're having trouble getting your digital VOI complete, please get in touch with our team. There may be a technical solution we can help you with.
An alternative way to verify your ID is through Australia Post's VOI service. You'll need to go into an Australia Post office and pay $49. This will add a couple of days to the process.
Do you consider the First Home Owner Grant?
We only lend for established houses, so this excludes lending for construction, land and off-the-plan. Most First Home Owner Grants are only available for construction.
Unfortunately, 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 in your Tiimely home loan application.
If you believe you are eligible for the First Home Owners Grant you will need to apply for the grant separate to your Tiimely Home Loan and, if approved, you will need to confirm with your conveyancer or solicitor that the funds will be made available at settlement.
You can visit http://www.firsthome.gov.au/ to check out the first-time home buyer process and eligibility.
How do I make my home loan repayments?
We have options. How you choose to manage your Tiimely home loan repayments is kinda up to you.
If you decide to have an offset account, your repayments will be automatically deducted from there.
You can nominate your own third-party bank account to make automatic deductions from (there’s a form in your loan document pack to do this).
Or you can manually transfer money to make your repayments, but keep in mind it can take 1-3 business days for the repayment to be completely processed.
When does settlement actually happen?
It’s different depending on whether you’re purchasing a property or refinancing your existing place.
When 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 – which is often anything between 30 and 90 days. Our solicitor / conveyancer will try their best to meet that date.
If you’re refinancing, the settlement date really depends on when both banks have everything they need to transfer the loan. This is generally worked out by our solicitor / conveyancer and your current bank’s settlement department. It can take up to 4 – 6 weeks.
I changed my mind, can I still add/remove an offset account?
You want to add one of our home loan offset accounts? Who can blame you, they’re pretty great – your offset balance 100% offsets your home loan balance. And if you decide you don’t want an offset account anymore, that’s up to you.
If you decide to add or remove an offset before settlement it’s OK. You just need to send us an email confirming the change. If you’ve already received your loan contract we’ll need to email you a new one to show this change.
It’s a little trickier if your home loan has already settled. You can still add or remove an offset account but there will be a variation fee. Contact our post-settlement team at 1300 842 405 or email email@example.com and we’ll sort it out for you.
Is there an early repayment fee?
If you’re able to pay off your loan earlier than expected because of a windfall or smart saving (yay!) or you’re moving to another lender (boo!), there is a $325 discharge fee to be paid.
And if you exit or change a fixed rate loan during the fixed period, there is also a break fee to be paid – this doesn’t apply to variable rate loans. The break fee amount varies based on your own loan times and amounts.
When is my 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.
Even 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 – we don’t mind how you split it.
I need more help
Your conveyancer or solicitor is the best person to answer your settlement-related questions. After all, that’s what you’re paying them for.
You can also contact our digital legal partner, MSA National, if you have questions about settlement.
If you’re still hitting information roadblocks, (though we don't think you will), you’re also welcome to get in touch with us:
Just in case you misplace any of the forms we sent you in your settlement pack. As well as a couple of sneaky ones you may also need.
The handy (yet often wordy) booklets that provide further information or tell you how to do things.
By Diem Tran