While your solicitor handles the settlement of your loan, there are a couple of things you need to think about ahead of settlement day.

The importance of Insurance

You will need house insurance as part of your home loan conditions, as it can cover your new home against sudden and accidental loss or damage from events such as fire, flooding, burglary, or natural disasters. You must provide your lawyer with proof that your property will be insured from the settlement date.

You only need house insurance to finalise settlement however, it’s a good time to discuss other insurances with your broker, particularly contents and life insurance. 

Pre-settlement inspection

Before you move in, you will have a chance to inspect the property you’ve agreed to purchase. This assures you that there have been no damages to the property since signing the sale and purchase agreement. Take a copy of your sale and purchase agreement with you to ensure all agreed chattels are left.

If the seller was obligated to make any repairs, check that these have been done. If there are any issues, contact your lawyer immediately. Your lawyer will communicate with the seller’s lawyer to ensure issues are resolved before the settlement date.

Settlement day usually comes four to six weeks after your offer was accepted, depending on the date you and the seller agreed.

On settlement day, most of the work is completed behind the scenes by your solicitor/lawyer.

These tasks include:

• Your KiwiSaver first home withdrawal is paid directly to your solicitor on or before the settlement day
• Your solicitor will notify your lender of the amount required to settle the purchase and will arrange for your loan to be drawn down and the money transferred to the vendor
• Your solicitor will also check that the rates have been paid by the vendor and are up-to-date
• Once they receive confirmation that the vendor has received the money, your solicitor will register the property in your name and arrange for you to receive the keys
• Once settlement has taken place, your solicitor or real estate agent will notify you, and you can then get the keys!

After a long, and sometimes unnerving, journey you’re now officially a proud homeowner! It’s time to move in and set-up your very first home sweet home. Congratulations!

We know the road to success in home buying can be daunting. There’s a lot to learn. Think of it as a step-by-step process and tick things off one by one. Take your time. Once you set the goal of purchasing your first home, there are plenty of people to help you achieve it.

Here at Unity, we love helping our members reach their goals. If a new home is on the cards for you, give us a call! We’re here to answer your questions and steer you in the right direction.