Fast funding for a property settlement

Why settlements go wrong at the last minute

A commercial or business property purchase has a fixed settlement date written into the contract. Everything else — bank approvals, valuations, the sale of another property, the arrival of funds from a partner — has to line up with that date. When one piece slips, the date doesn’t move.

The most common problems we see:

• A bank approval that arrives late, or with conditions that can’t be met in time.
• A valuation shortfall, where the bank values the property below the price and reduces the loan.
• A buy-before-sell gap, where the old premises haven’t sold yet.
• Stamp duty and costs that are larger than planned or due sooner than expected.
• A partner or investor whose contribution is delayed.

What fast settlement funding can do

Problem	Typical solution
Bank approval running late	Private first mortgage or bridging loan to settle, refinanced to the bank later
Shortfall from valuation	Second mortgage over other property to top up
Old property not yet sold	Bridging loan secured over both properties
Duty or costs gap	Caveat loan or second mortgage over existing property

These are all property-secured, which is what makes them fast. Up to $5m is possible within 24–48 hours when the valuation, signing and documents are ready.

Stamp duty and state differences

Stamp duty (transfer duty) is a state tax collected by each state or territory revenue office — Revenue NSW, the State Revenue Office in Victoria, the Queensland Revenue Office, RevenueSA and so on. Rates, concessions and due dates differ. Victoria, for instance, is progressively replacing stamp duty on commercial and industrial property with an annual Commercial and Industrial Property Tax, which changes how purchase costs fall over time.

Your conveyancer or solicitor will confirm the duty payable and when it’s due. If duty is part of the gap, include the exact figure in your enquiry. Our location pages note the revenue office for each state.

Settlement runs on business hours

Most settlements are completed through electronic conveyancing during the business day. That means funding needs to be in place — documents signed, security registered or ready to lodge, funds available — before the settlement booking. If you’re in Perth, Adelaide or Darwin, remember east-coast parties may be working on a different clock. The funding cut-off checker helps.

If settlement is less than a week away, start your enquiry now and include the settlement date.

What to have ready

1. The signed contract of sale and the settlement date.
2. The bank’s approval or latest correspondence, if any.
3. Details of the property being offered as security — rates notice and loan statements.
4. The settlement statement or an estimate of funds required, including duty.
5. Exit evidence — the refinance approval, the sale of the old property, or the investor’s commitment.
6. Your solicitor’s or conveyancer’s contact details.

Protecting yourself

• Tell your solicitor early if there’s any risk to settlement. They may be able to negotiate time with the vendor.
• Check the default provisions in the contract so you know what’s at stake.
• Plan the exit. Settlement funding is usually short-term; know exactly how it will be repaid.
• Build in a buffer for the refinance or sale taking longer than expected.

An illustrative example

A Melbourne printing business agrees to buy its leased factory from the landlord, with settlement in 45 days. Two weeks out, the bank’s valuation comes in below the price and the approved loan drops. The owners have equity in their home. A second mortgage covers the shortfall and duty, the purchase settles on the contract date, and the second mortgage is repaid 18 months later through a refinance once the property is revalued. Illustrative only.

Which structure fits which settlement problem?

Settlement funding comes in a few shapes, and choosing the right one saves money as well as time.

Settling in full while the bank catches up. If the bank has approved in principle but formal approval or documents won’t be ready by the settlement date, a private lender can settle the purchase with a first mortgage over the property being bought. When the bank is ready, it refinances the private loan. The key costs to compare are the private loan’s fees and the interest for the expected number of weeks.

Topping up a reduced bank loan. When a valuation shortfall cuts the bank’s loan, the gap can be covered by a second mortgage over another property you own — often the family home or another commercial property — leaving the bank’s loan on the purchase untouched.

Buying before selling. A bridging loan secured over both the property being sold and the one being bought funds the purchase; the sale of the old property repays it.

Covering duty and costs only. A smaller caveat loan over existing property can cover duty, legal costs and adjustments when the main loan is fine but cash is short.

In every case, the lender will focus on the exit: the bank refinance, the sale, or incoming funds. Clear evidence of that exit is what turns a stressful settlement into a routine one.

Settle on the date you signed for

A missed settlement can cost far more than the funding needed to save it. Enquiring takes about a minute and doesn’t involve a credit check, your details stay with one team instead of being spread across many lenders, and a real person will tell you quickly whether the date is achievable. Please be precise about the settlement date and the shortfall on the form — accuracy is what makes speed possible here. See if you qualify.