A property settlement is the legal process of transferring ownership of a property from either:
From the seller to the buyer when purchasing a property, or
From one financial institution to another when refinancing
Sometimes, a lender may proceed with decisioning your application based on specific conditions that must be met before or at settlement. These conditions can be added by your lender, seller, buyer, solicitor or conveyancer and may include:
Holding a fully executed contract: both parties must agree to the transaction
Addressing encumbrances: this refers to any lodged or registered interest in the land from a non-proprietor, such as existing mortgages, lease agreements, or caveats
Closure of existing credit facilities
Finalisation of court documents: this could involve any family court matters
Why settlement conditions matter
For borrowers, settlement conditions can streamline the process of obtaining finance approval. By meeting these conditions, you can receive approval from your lender with a clear list of conditions required for you to meet before settlement.
This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.
Unloan is a division of Commonwealth Bank of Australia.
Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).
Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.
*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.