Settlement is when ownership transfers and your loan finalises. Lenders can reassess your financial position right up until that moment, and changes to your income, debt, or employment can delay or derail the process.
The period between loan approval and settlement typically runs four to eight weeks, depending on contract terms and property type. For ADF members in Western Australia, this window often coincides with posting notices, pre-deployment admin, or leave periods. That makes it tempting to act on financial decisions you have been putting off, but doing so before settlement finalises can create problems that are difficult to resolve under time pressure.
Do Not Change Jobs or Accept a Posting Without Telling Your Broker
Lenders approve your loan based on your current income and employment status. If you accept a posting from RAAF Base Pearce to Tindal or transition from permanent to contract roles before settlement, your income structure changes and the lender may need to reassess your application.
Consider an ADF member who accepted a role change from full-time to reserves two weeks before settlement on a property in Rockingham. The lender flagged the income change during a routine pre-settlement check, and the loan had to be re-submitted with updated payslips and a new employment letter. Settlement was delayed by three weeks, and the member had to negotiate an extension with the vendor to avoid penalty costs.
If a posting or role change is unavoidable, contact your broker immediately. Some lenders will accept updated documentation without re-triggering full assessment, but that depends on the timing and the nature of the change. Waiting until the week of settlement to disclose it limits your options.
Do Not Take On New Debt or Increase Credit Limits
Lenders calculate your borrowing capacity based on your existing commitments at the time of approval. Taking out a car loan, increasing a credit card limit, or financing furniture before settlement reduces your serviceability and can trigger a loan withdrawal.
In one scenario, an Air Force member financing a vehicle on a five-year term added $650 per month to their committed expenses. The lender re-ran serviceability and determined the member could no longer support the approved loan amount. The member had to either repay the car loan in full or renegotiate the property contract, both of which came with financial penalties.
Even small changes add up. A $5,000 credit limit increase might seem minor, but lenders assess the full limit as potential debt, not just the amount you use. That can reduce your borrowing capacity by tens of thousands of dollars depending on the lender's calculation method.
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Do Not Make Large Cash Deposits or Withdrawals
Lenders verify your deposit source and account balances before settlement. Unusual cash deposits, transfers from third parties, or large withdrawals can raise questions about undisclosed liabilities or gifted funds that were not declared during the home loan application.
If you receive funds from family, a tax return, or a bonus payment during this period, keep a clear record of the source. Lenders may request a statutory declaration or additional documentation to confirm the funds are genuinely yours and not borrowed. That process takes time, and if you cannot provide the required evidence quickly, settlement can be delayed.
Similarly, withdrawing large amounts for furniture, removalists, or renovation materials before settlement can leave you short of the funds needed to complete. Lenders check account balances in the days leading up to settlement, and if your cash position has deteriorated, they may require proof that you still have sufficient funds to cover costs.
Do Not Miss Loan Document Deadlines or Conditional Requirements
Loan approval comes with conditions that must be satisfied before the lender releases funds. These typically include a satisfactory property valuation, building and pest reports, insurance confirmation, and signed loan documents. Missing a deadline or failing to provide a required document can delay settlement or void your approval.
For ADF members deployed or on exercise during the pre-settlement period, this becomes a practical issue. If you are in the field or offshore and unable to access email, sign documents, or provide updated information, you need to nominate someone with appropriate authority to act on your behalf. That might mean setting up a limited power of attorney or ensuring your broker has digital signing authority where the lender permits it.
Insurance is a common sticking point. Lenders require building insurance to be in place from settlement day, and the policy must list the lender as an interested party. If you delay arranging cover or the insurer issues the certificate with incorrect details, the lender will not settle until it is corrected. That can take 24 to 48 hours, which is enough to push settlement past the scheduled date.
Coordinate with Your Conveyancer and Broker in the Final Week
The final week before settlement involves multiple parties: your broker, the lender, your conveyancer, the vendor's solicitor, and sometimes your real estate agent. If any one of them is waiting on information or documentation from you, the entire timeline stalls.
Your conveyancer will typically send a settlement statement three to five days before the scheduled date. That statement confirms the exact amount you need to transfer, including adjustments for rates, water, and strata fees. If you do not review and approve it promptly, settlement cannot proceed.
Similarly, your broker may need to provide final payslips, a rates notice, or confirmation of funds to the lender in the days leading up to settlement. If you are away or uncontactable, those requests sit unanswered and settlement gets pushed.
For ADF members in WA who are frequently in remote postings or sea deployments, setting up a process in advance matters. That might mean scheduling check-ins with your broker, nominating a contact person for urgent matters, or ensuring you have secure document access offshore.
If you are approaching settlement and want to confirm you have everything in order, call one of our team or book an appointment at a time that works for you.
Frequently Asked Questions
Can I change jobs between loan approval and settlement?
Changing jobs before settlement can trigger a lender reassessment of your income and employment status, which may delay or affect your loan approval. If a posting or role change is unavoidable, contact your broker immediately to manage the process with your lender.
What happens if I take out a car loan before settlement?
Taking on new debt before settlement reduces your borrowing capacity and can lead to your loan being withdrawn. Lenders re-run serviceability checks, and additional commitments may mean you no longer meet the approval criteria for the loan amount.
Why do lenders check bank accounts again before settlement?
Lenders verify your deposit source and account balances before releasing funds to ensure your financial position has not changed. Large cash deposits, unusual transfers, or reduced balances can delay settlement if they cannot be explained quickly.
What happens if I miss a loan condition deadline?
Missing a conditional requirement such as insurance confirmation or signed loan documents can delay settlement or void your approval. For ADF members who may be deployed or on exercise, arranging authority for someone to act on your behalf helps avoid delays.
How far in advance should I arrange building insurance?
Building insurance must be in place from settlement day and list the lender as an interested party. Arranging cover at least one week before settlement allows time to correct any errors on the policy certificate that could delay the lender releasing funds.
