Your loan is cleared for settlement: Here’s what happens next.
- Ash Gates
- Jan 14
- 3 min read
You’ve reached the final green light, now settlement can move fast. Here’s what “cleared for settlement” really means, how soon it can happen, and the small prep steps that prevent last-minute stress (especially for refinances).
If you have received a note that your loan is cleared for settlement, congratulations. This is a major milestone. It means your lender has reviewed your loan documents, confirmed everything is complete, and you are now moving into the final settlement stage.
Settlement can move quickly, so a little preparation now helps everything run smoothly on the day.
What "cleared for settlement" means
When a lender certifies documents as complete, it means:
Your signed loan documents have been received and checked.
The lender has confirmed they have everything they need.
The file can now progress to settlement booking and settlement preparation.
From here, the parties involved will work together to confirm a settlement date. Once that is locked in, you will be notified.
How quickly can settlement happen?
In many cases, settlement can happen faster than people expect, especially with electronic settlements. Sometimes it can be as soon as the next business day, but timing depends on your lender, the other bank (for refinances), your conveyancer, and platform availability.
Refinance settlements: key points to know
Quick settlements
Electronic settlements can move quickly once everything is ready. If you have upcoming payments or transfers planned, it is worth being organised early.
Access to funds is important
If you have a Line of Credit or Redraw facility, your lender may lock access shortly before settlement. This is done to keep payout figures accurate and prevent last minute changes.
If you will need funds from these accounts soon, transfer what you need to another account ahead of time.
Download your statements
After your existing loan is paid out and removed from your online banking, you may no longer be able to view statements.
If you think you may need them for your records, such as tax, property history, or future reference, download recent statements now and save them somewhere secure. A year or two is often a sensible starting point.
Purchase settlements: key points to know
Make sure your funds are ready
Please ensure any funds required for settlement day are available and cleared in advance. This might be held in your personal account or in your conveyancer’s trust account, depending on how your purchase is structured.
If you are unsure where the funds should sit, check with your conveyancer.
Be reachable on settlement day
On settlement day, it is important that you are reachable by phone. Occasionally, last minute confirmations are needed and being contactable helps avoid delays.
Common questions
Do I need to do anything right now?
Usually, no. If you have been cleared for settlement, the next step is often simply waiting for the settlement date to be confirmed. The main actions are the preparation items above, especially for refinances.
What if I need money from redraw before settlement?
Transfer it early. Once accounts are locked, you may not be able to access funds until after settlement.
What if I cannot find my statements later?
That is why we recommend downloading them now, before payout occurs and the loan disappears from online banking.
Final thoughts.
Being cleared for settlement is the final green light. A few small steps now can make settlement day feel effortless.
If you have questions about your situation or would like help preparing for settlement, please contact our team at Fync.
*Disclaimer: Please note that the information provided in this communication is for general informational purposes only and should not be construed as professional advice. It is not intended to substitute for personalised financial, legal, or tax advice. Please consult a qualified professional before making any decisions based on the information provided.
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