What are Settlement Advances?
Settlement advances offer a fast way to release the equity you have in a property, before it is sold or after it has sold, but when the funds are needed before the settlement date.
They are are short term funding solution, when the property has been unconditionally sold, but the funds need to be released prior to the settlement date, such as when the vendor wants to put down a deposit on another property and can not wait till the settlement date. The same is true for property auctions or the purchase of a new property by the vendor.
The settlement advance will run over a short period of time, initially the advance will be set up for a 60 day term - which may be extended (contact us and let us know the details). As soon as the property settles, the advance will be repaid.
See How it Works above to learn more.
We also offer vendor paid advertising advances, which allows the vendor (home seller) pay for things such as property repairs, to make the property more appealing to buyers or home sale advertising costs prior to the home sale.
What is a bridging loan?
A bridging loan offers a short term financing solution, usually to 'bridge' the financial gap when wanting to purchase a new property, before your existing property has sold. The traditional bank funding times for bridging loans, takes 2 or 3 weeks to complete and a credit check is usally performed on the applicant for the loan. Bridging loans typically run for a few months up to a few years.
Are settlement advances a good alternative to bridging loans?
If funding is needed to be quicker than the 2 to 3 weeks needed for a bridging loan, then a settlement advance is a good option to consider. Settlement advances can be reviewed and approved on the same day and funded between 24 and 48 hours in most cases.
What can settlement advances be used for?
They can be used for any purpose such as putting down a deposit on a property, before you have completed your current home sale. They can also be used to assist bidding at auction, where you just can't wait for the settlement date on the property you are selling. They can also be used to purchase your next property outright, up to the value of the property you are waiting on settlement1 - or any other purpose1.
Can bridging loans be approved on the same of application?
Generally no. Bridging loans typically take two or three weeks to review and approve before they are funded. Settlement advances can be paid on the same day in an emergency, but generally between 24 hours and 48 hours in most cases.Settlement advances are a much faster option than bridging loans.
Are there any faster alternative products to bridging loans?
Yes, Settlement advances can be paid on the same day when urgently needed, but typically take between 24 hours and 48 hours to be funded.
How do settlement advances and bridging loans compare?
Settlement advances have many advantages over bridging loans. You can generally borrow up to 80% of the equity in your property value1, which can be approved on the same day you apply and funded in 24 to 48 hours.
See our Bridging Loans Comparison Chart above.
How long does the application take?
The application will only take a couple of minutes. We need your contact details, your property address and amount of equity you have in it. Then we just need some details on your advance requirements. How much you need and for how long, and some idea how urgent your request is and what the advance will be used for. That's it.
How much can I borrow or advance?
You can generally borrow up to the available equity (80% of the equity value) you have in the selling property1, minus any fees. If you own the property outright, then you can borrow up to 80% the total value of your property1.
The maximum amount we can advance is $5,000,000.
How much will a settlement advance cost me?
That will depend on a number of factors. For a quick review of typical costs, see our Repayment Costs Chart above.
Also check out our Costs and Charges page for further information and our loan calculator.
When do I have to repay my settlement advance?
As part of the terms of your agreement with us, your settlement advance will be repaid at the same time that your property settlement completes.
What documents or details do you need from me?
We will need to review some of the documents below, in order to complete your advance in a timely manner:
- Contract of Sale - (if applicable) for the property you are selling or advancing against
- Mortgage Statement - PDF document issued by your mortgage provider
- Solicitor or Conveyancer - (if already arranged) their name, company and contact details
- Identity Verification - A clear, colour photo of the front and back of your Driver's Licence
The documents we need to see, will depend on whether you already have an unconditional sale or are preparing for your home sale.
How can I speed up my application?
To help speed up your application, complete the short enquiry form above, which should only take 3 or 4 minutes, give us your advance details (make sure to select '24 hours'), contact details and property details straight away. We will give you a call back, so be ready to accept a phone call from us or give us a call directly to 1300 893 199, during office hours.
Can I get a joint settlement advance?
If the property you are intending to sell, is in joint ownership and in both your names, then yes, you can get a joint settlement advance1.
How long can I take out the settlement advance for?
Most advances can complete in the initial, standard 60 days loan term, as set up in your agreement with us. However, in some cases, the loan term may need to be extended, in which case we will need to discuss this with you.
What is the best way to put down a deposit on a home, before my property settles?
If you don't have ready access to the cash needed for the deposit and are waiting on your property settlement date to access the funds, then you could consider a settlement advance, which could give you access to the cash needed in 24 to 48 hours, in most cases. The advance can then be easily repaid when your property finally settles.
Can I get an advance on the sale funds for home repairs, before I list my home for sale?
Yes you could. We offer advances for home repairs and advertising listing costs, before and to help you, list your property.
Can I get a loan to help with advertising costs to help sell my home?
Yes, you could. We offer a vendor paid advertising (VPA) option, so you can get stress free access to the funds you need to properly market your property for sale. The advance can then later be easily repaid, when the property sells, on the settlement date.