By Ramesh Kandel – Mortgage Broker & Director, Rayz Financial Services
You’ve found your property, secured finance, and now it’s time for one of the most important steps — signing your mortgage and loan documents and preparing for settlement. The process can be electronic (most common) or paper-based. Both are legally valid, but they work differently in practice.
Here’s what you need to know to make it smooth and stress-free.
1. Review Your Loan Offer Thoroughly
When your loan is formally approved, your lender issues a loan offer pack. Check the following carefully:
- Loan amount and term – Matches your agreement.
- Interest rate type – Fixed, variable, or split.
- Repayment type – Principal & interest or interest-only.
- Fees – Application, ongoing, and any early repayment or break fees.
Rayz Tip: Don’t sign until you understand every term. If unsure, speak to your mortgage broker or solicitor.
2. Understand the Mortgage & Related Documents
You’ll be signing a mortgage that lets the lender register a legal interest over your property. Other forms may include:
- Direct debit authority – Sets up repayments.
- Disbursement authority – Directs where settlement funds go.
- Special conditions – Extra lender requirements before settlement.
Rayz Tip: Keep all documents together and note any conditions you must satisfy before settlement.
3. Check Personal & Property Details
Incorrect details can cause costly delays. Make sure:
- Your full legal name matches your identification.
- Property description (lot, plan, title reference) is correct.
Rayz Tip: Cross-check your contract of sale, loan offer, and ID details line by line.
4. Witnessing Requirements
Some mortgage documents must be signed in front of an authorised witness such as a Justice of the Peace, solicitor, or notary. Your broker or solicitor will advise you.
Rayz Tip: Book your witnessing appointment early and bring the required ID to avoid rescheduling.
5. Settlement Methods: Electronic vs Traditional
Electronic Settlement (PEXA)
Now the preferred method for most property transactions, electronic settlement is completed via a secure online platform.
How it works:
- Your solicitor/conveyancer and lender prepare all documents digitally.
- Funds from both you and your lender are confirmed.
- The property title is transferred and the mortgage is registered instantly.
- Funds are paid to the seller and relevant authorities on the same day.
Advantages:
- Faster processing and cleared funds.
- Reduced risk of lost or delayed documents.
- Real-time tracking of settlement progress.
Traditional Paper Settlement
This is the older, manual process where all parties (or their representatives) meet physically to exchange documents and cheques.
How it works:
- Paper mortgage documents and bank cheques are prepared in advance.
- Representatives meet at a set location to swap paperwork and funds.
- The title transfer is lodged manually with the land registry.
Considerations:
- Can take longer for funds to clear.
- More prone to delays if a cheque or document is incorrect.
- Still used in some cases, especially for complex or cross-border transactions.
Rayz Tip: Ask your conveyancer which method applies to your matter and what you must provide by each deadline.
6. Pre-Settlement Checklist
Regardless of the method, make sure you:
- Do a final inspection – Property should match the contract condition.
- Arrange insurance – Cover should start from the required date.
- Provide shortfall funds early – Transfer to your solicitor/conveyancer in time.
- Complete Verification of Identity (VOI) – Required for all property transfers.
Rayz Tip: Send proof of transfers and insurance certificates as soon as they’re arranged.
7. Keep Communication Open
Work closely with your:
- Mortgage broker – Ensures the loan is ready for settlement.
- Solicitor/conveyancer – Coordinates the legal and financial sides.
- Real estate agent – Confirms key collection once settlement is finalised.
Rayz Tip: Share one group email thread so everyone sees updates and timelines in real time.
Final Thoughts
Whether settlement is completed electronically or through traditional means, success comes down to preparation — signing documents correctly, checking details, and acting early to avoid last-minute issues. At Rayz Financial Services, we guide you through each step, working alongside your solicitor or conveyancer to ensure your settlement runs smoothly.
Disclaimer: This article provides general information only and does not constitute legal, financial, or conveyancing advice. Always seek independent legal advice before signing loan or mortgage documents.
📍 Get in Touch:
Ramesh Kandel
Mortgage Broker & Director – Rayz Financial Services
🌐 www.rayz.com.au
📧 ramesh@rayz.com.au
📞 0451 065 166 | 02 6106 9988
📍 Based in Canberra | Serving clients Australia-wide
