What happens after settlement
Settlement is the end of the buying process and the start of a thirty-year relationship with a loan. The first few weeks decide whether that relationship runs on autopilot in your favour or quietly against you. None of it is complicated; most of it simply never gets explained.
The first fortnight
Your first repayment typically falls about a month after settlement, and the date is on your loan documents. Set up the direct debit if it is not automatic, check that the account it draws from is the one you intend, and confirm the repayment amount matches what you agreed. Building insurance should already be in place from exchange; confirm it names the correct property and that the lender has been noted where required.
Set the loan up to work
If you have an offset account, start using it as your everyday account so the balance works against the loan daily. If you intend to make extra repayments, decide the amount now while the habit is easy to form rather than in a year. Both are small decisions that compound substantially across a loan term, and both are far easier to establish at the start than to introduce later.
What to check on the statement
The first statement is worth reading properly: the rate applied, the loan structure, whether any split is set up as agreed, and whether fees match what was disclosed. Errors are uncommon but they do occur, and they are far easier to correct in month one than in year three when they have been compounding quietly.
Establish the review rhythm
A loan that was competitive at settlement drifts. Lenders price new customers more sharply than existing ones, so the gap opens gradually and without notice. An annual check, comparing your rate against what is currently available and asking your lender to reprice if it has fallen behind, is the single habit that keeps a mortgage honest. The post-settlement centre covers the whole rhythm.
The first month, in order
Four things worth doing before life moves on.
Date, amount and the account it draws from. Usually about a month after settlement, and it is on your loan documents.
Right property, right cover, lender noted where required. It should already be in place from exchange.
Easiest to establish now. Both compound over the term and neither is easy to start later. How offset works.
The rate that was competitive today will not be forever. One reminder is what keeps it honest.
Settled recently and not sure the loan is set up well?
Charles can check the structure, the rate and whether the offset is doing what it should.
After settlement questions
When does my first repayment come out?
Typically about a month after settlement, and the exact date is in your loan documents. It is worth confirming rather than assuming, and worth checking that the account it draws from has the funds, because a missed first repayment is an avoidable mark on an otherwise clean file.
Do I need to do anything with my offset account?
Use it. An offset only saves interest while money is in it, so the common approach is to have your salary paid into it and pay expenses from it, so the balance works while it sits there. Setting that up in the first month is easy; introducing it two years later rarely happens.
How often should I review my home loan?
Annually is a sensible rhythm, and sooner if rates move materially or your circumstances change. Lenders price new customers more sharply than existing ones, so the drift is gradual and predictable. A yearly check and a phone call is usually all it takes.
What if I find an error on my first statement?
Raise it immediately with the lender. Errors are uncommon but not unknown, and they are far simpler to fix in the first month than after they have compounded. Read the rate, the structure and any fees against what you agreed.
Can I make extra repayments straight away?
On a variable loan, generally yes and without limit. On a fixed loan, most lenders cap extra repayments during the fixed term, and exceeding the cap can attract a cost. Check your specific loan before setting up anything automatic.
Related guides
General information only, not credit or financial advice. Professional lending policies, eligible occupations and loan-to-value thresholds vary by lender and change over time. Eligibility is confirmed against current lender policy in an assessment; nothing on this page is a promise that any lender will approve any application.
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