What happens if settlement is delayed?

Common reasons for bank delays and how to avoid them

Consequences when buyers or sellers delay settlement

• If the buyer causes a delay, they may have to pay penalty interest to the seller. In serious cases, the buyer could be in breach of their contract. The seller could cancel the contract and keep the deposit if the delay turns into default.
• If the seller causes the delay, the buyer may issue a notice to complete, and in some cases claim compensation or end the contract.

If a delay looks likely, ask your conveyancer to request an extension in writing and explain the reason. It’s better to seek the extension before the settlement time. Settlement rules may vary slightly depending on the state or territory of purchase/sale.

Risks with long settlement periods

A long settlement can seem convenient, but it comes with risks.

• Property prices might change, which can affect your borrowing power.
• Your loan approval could expire, forcing you to reapply.
• Public holidays and year end closures can slow down banks and legal teams.

Reduce risk by checking your finance expiry dates, scheduling a mid-period check-in with your lender, and confirming your conveyancer is ready at least a week before.

Does a 30-day settlement include weekends?

Many contracts count 30 days as calendar days, so weekends are included when you’re counting towards the date. However, the actual settlement must occur on a business day. If your calculated date lands on a Saturday, Sunday, or a public holiday, settlement typically rolls to the next business day.

Steps to keep your settlement on track

If you have questions or need extra support navigating any part of the process, you can always speak with one of our home loan experts for guidance. We’re here to support with fast approvals and a smooth and stress-free settlement.