Simultaneous settlement explained | Selling and buying a home - NAB

Why timing matters for a simultaneous settlement

Selling one property to buy another can feel complex because two big events overlap. If you want to move once, you may try to line up the dates so the sale of your current home and the purchase of your next home settle on the same day. This is often called a simultaneous settlement (also called a contemporaneous settlement).

This guide explains the common steps people move through, from planning and finance to contracts and settlement. While this is the general flow of events, everyone’s situation is different, and rules and lender requirements can vary.

Step 1: Prepare your property for sale

Often starts 12–16+ weeks before moving

Start by decluttering, completing minor repairs and thinking about presentation. This can also be the stage where you organise professional photography or styling and choose a selling agent.

Even though you’re not ready to buy yet, one of the most useful things you can do early in the journey is to:

  • Check borrowing power and work out what you can comfortably afford.

  • Figure out approximately what funds you may need available upfront.

This is because some payments, like the contract deposit, can be due before you receive funds from selling. It’s also good practice to map out the main costs of selling and buying, so your budget is based on more than just the headline price.

Step 2: List your home and begin active buying research

Often starts 8–12 weeks before moving

Once your home is listed, inspections begin and the sale campaign starts to run. In property reporting, the time from listing to a signed contract is often described as ‘days on market’, and it can vary widely by location and conditions.

At this stage, you’re also actively inspecting homes you may want to buy. Even though you’re not ready to make an offer yet, it helps to learn what your budget can actually buy.

Step 3: Understand your finance position 

Often 8-10 weeks before moving and may be revised later

What the lender reviews

When you’re selling and buying close together, a lender may look at your income, regular spending, existing debts and how funds from your sale might be used for the next purchase. The aim is to understand what repayments look like and whether the numbers work during the changeover.

What pre-approval helps you do

Pre-approval, sometimes called conditional approval, is an in-principle indication of how much a lender may be willing to lend based on the information you provide. Many people use it as a way to narrow their search range and avoid falling in love with homes that are well outside budget.

Why pre-approval isn’t final

Pre-approval is not the same as unconditional approval. Final approval typically comes later, once a specific property is chosen and further checks are completed. This is one reason many people revisit finance once they have a property under contract.

Step 4: Accept an offer and align settlement timing

Often 6-8 weeks before moving

When you accept an offer on your home, the sale usually doesn’t become final straight away. Timing differs by state, so it’s best treated as a milestone rather than a fixed number of days. Contracts often include conditions, and once these are met, the sale becomes unconditional.

At this point, the settlement date is usually locked in. Many contracts set settlement somewhere between 30 and 90 days from contract signing, and this window is often what you’re trying to align on both sides if same-day settlement is the goal.

If you’re aiming to buy first before selling, you may explore options such bridging finance, which is described as short-term finance to help cover the gap between buying and selling.

Step 5: Finalise the purchase contract and pay deposit

Often 4-6 weeks before moving

Unconditional approval

Once your offer is accepted, the property goes under contract. At this stage, the finance process usually moves from pre-approval to full, unconditional approval once your lender has completed further checks, including a valuation of the chosen property.

Keep deposit ready

In many purchases, a deposit is payable when contracts are signed, exchanged and the conditions satisfied, with the timing almost immediate for auctions. Deposit amounts vary, but it’s common to pay deposits around 10% or in some cases 5%. The key point is that the deposit is often due before your sale funds arrive, so deposit planning is key.

Step 6: Contract to settlement

Settlement timing is commonly 30-90 days from contract signing

Before settlement

After contracts are signed, the process usually shifts into the settlement period. This is the window where the conveyancer and lender coordinate the legal and financial steps needed to complete the transfer, including preparing documents, confirming figures and organising funds for settlement day. If you’re aiming for same-day settlement, this is where timing and coordination matter most, because the sale and purchase can be linked and delays on one side may affect the other. In the final week, final inspections are completed and all the paperwork finalised.

On settlement day

The lender typically advances the loan funds and registers the new mortgage against the title as part of the ownership transfer. If everything is aligned, the sale of your current home and the purchase of your next home settle on the same day. The proceeds from the sale are used to help pay out the existing mortgage, and the remaining amount contributes toward completing the new purchase. Ownership transfers, your old loan is discharged and your new home loan begins from the settlement date.

Simultaneous settlement: timeline checklist

Selling a house to buy another works best when you understand the sequence. The sale usually leads, the settlement date becomes the anchor, and the purchase is timed around it. Pre approval, deposit timing, and settlement coordination all play a role.

  • Research recent sales and likely costs of selling and buying

  • Prepare your home for sale and choose an agent

  • List your property and begin inspections

  • Actively inspect homes in your target buying area

  • Speak with a lender about borrowing capacity and pre-approval

  • Accept an offer and track when your sale becomes unconditional

  • Confirm the settlement date written into the sale contract

  • Negotiate purchase timing if aiming for same day settlement

  • Plan for the purchase deposit and how it will be funded

  • Understand when unconditional approval is expected

  • During settlement, conveyancers and lenders coordinate documents and funds

  • Complete settlement and move into your new home

If you want help understanding how this timeline could apply to your situation, you can speak to a home loan expert who can talk through your options and what information may be needed at each stage.

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The information contained in this article is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, NAB recommends that you consider whether it is appropriate for your circumstances. NAB recommends that you seek independent legal, financial and taxation advice before acting on any information in this article.

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