Pre-Settlement Loans

A pre-settlement loan refers to a loan which is for a short period of time, which will be repaid in full, when the property sale completes, or settles.

They are generally used for associated purposes along with a home sale. Sometimes the funds are used to help with the listing of the property (via a Vendor Paid Advertising Loan) and sometimes they are used to secure another property, either via deposit or at auction, although many other purposes are possible.

Also see short term bridging loans.

This will depend on the purpose and amount borrowed with the settlement loan.

Pre-Sale Listing Advantages - via a Vendor Paid Advertising loan

• Additional funds will help you make repairs and get the property ready for sale quicker
• Funds can used to pay for your home sale advertising costs which could help you sell your property faster
• A well presented and advertised property may not only sell faster, but may achieve a better price

Pre-settlement Advantages

This would be after the property has been listed for sale and perhaps after you have received an unconditional offer on the property.

• Allow you to access the equity you have in the property before the sale completes and the money is in your bank account
• Allow you to secure time-sensitive opportunities, which could be missed when having to wait for the sale to complete
• Allow you to put down a deposit or bid on a new property, without waiting for your home to sell first

Pre-settlement loans and bridging loans are used in similar situations, and each has their own advantages, depending on your needs.

Pre-settlement loans are useful when the funds are needed over a relatively short period of time, to be repaid quickly. They are also useful in emergencies where the funding time is critical and waiting for the longer approval process of bridging loans would result in missed opportunities or cause an increase in costs. Settlement loans can be funded in a very short period of time, as the property itself will not need to be appraised and as the advance is secured against the property.

Bridging loans have the possible advantage of lower interest rates, and the loan term will be longer, generally 12 to 24 months; but the loan approval process may take weeks and may involve a property appraisal and a credit check for the borrower.

Settlement Advances will always do their best to accommodate emergencies - that is what we do!

It is possible to be approved and funded on the same day, when the need is urgent, such is bidding at auction for a property on the same day; so please let us know your funding needs as part of your application enquiry. Generally though, applications may be approved and funded between 24 and 48 hours when needed fast.

Pre-settlement loans are useful in releasing the equity you have in your property quickly and usually for short term needs.

When you are considering selling or are in the process of selling your home or property, then settlement loans (or pre-sale listing loans via our Vendor Paid Advertising productare also a good option to consider, as repayment can be aligned with the eventual sale of your property - or 60 day period.

Some common use cases are listed below:

Via our Vendor Paid Advertising product

• Home repair & renovation costs prior to listing the property for sale
• Home and garden repairs and maintenence pre-sale
• Home advertising costs to list the property

Via our Settlement Advance product

• Deposits on new properties
• Bidding for properties at auction
• Purchase a new property

Yes they can. We have provided funds to borrowers on the same day of application, when the funds have been needed in an emergency, such as bidding on a new property at auction. If the funds are urgently needed, we will need some documentation from you, to ensure the process goes smoothly.

Examples of documentation required:

• 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 Settlement Advances application is fast, and should only take a few minutes.

We do not ask any unnecessary questions, and only need your contact details, the property selling or sold, the purpose and amount of the advance and how much and how long you need it for. This allows us to understand your needs and what is required from you, in order to make sure you have the right product, to answer any questions you may have and to help you complete your advance with us, as quickly as possible.

The amount you will be able to borrow with us, will depend on the available equity built up and available to you¹, in your property.

The largest amount we can advance against is $5,000,000.

This will be dependent on the amount you borrow and how long it is needed for.

Also see our Costs and Charges page for further details and our loan calculator.

All advances taken out with us, are for when the borrower is in the process of selling their property; the repayment will generally conclude, when the property or home sale completes.

Our advances are set up for an initial period of 60 days, which is enough time in most cases; however if the term needs to be renewed again, please contact us for assistance.

These will depend on the status of your property and whether you are preparing to sell, or have an unconditional offer on the property.

See some common documents we require, as below:

• 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

Settlement Advances work a little differently than other property loans as we do not require any property appraisal, which would slow down the approval and funding process.

• For pre-sale preparations, we can generally lend up to $50,000 (in some cases) for repairs and property advertising and listing costs
• From unconditional offer to settlement, we can lend up to your property value¹ or the equity value that you have in the property

This will depend on a careful look at your financial situation and needs. To help simplify the question, it is possible to both sell and buy, at the same time.

Settlement advances offer a solution, allowing you to purchase a new property, when your current property has an unconditional offer, but may take weeks for that to proceed through to settlement.

During the waiting time, you may find a new property that you would like to put down a deposit on or purchase outright. In these situations, a settlement advance can give you quick access to the cash you need, in order to make the offer and purchase the property.

Also see: Bridging Loans in Australia for more options.