Settle and move in
Getting ready for settlement dayYou’re offer is unconditional now, that’s great! Now let’s look ahead to settlement day and make sure you have all the checks and balances tidied up so everything can go ahead smoothly on the day. Here are some things to remember in the leadup to this milestone. Some may find it helpful to take time off work to finalise the paperwork and move.
If you’re borrowing money to finance the purchase, now’s the time to finalise your home loan structure and lock in an interest rate if that’s what you’d like to do. See our previous guides to get a better understanding of the different types of home loan and interest rates.
If you are relying on your KiwiSaver savings or First Home grant to fund part of your purchase. Now’s the time to get the paperwork underway and submitted. See our guide on using KiwiSaver or Kāinga Ora grants for your purchase in the Useful Links tab below.
Once you’ve decided on your loan structure, your broker will confirm it with the lender who will prepare the loan documents and send it to your lawyer. This will normally include the home loan contract, terms and conditions of the loan, mortgage instructions to secure the loan, and any guarantees involved. Once your lawyer receives the documentation, they should get in touch with you to make sure all the terms are as you expect.
You will need to book in a time to see your lawyer to sign these documents.
You will also need to make sure that you transfer the final payment amount (not borrowed from a bank) is in your lawyer’s trust account before settlement day.
A pre-settlement inspection lets you check the property and chattels are in the same condition they were in when you agreed to buy the property. Note that this is not to uncover any problems that existed when you signed the agreement.
When can the inspection happen?
The pre-settlement inspection should happen at least 2 days before settlement day. This would allow the seller time to address any issues that you may pick up.
What to look for in pre-settlement inspection?
What happens if I find an issue during the pre-settlement inspection?
If you find any damage that wasn’t there when you signed the sale and purchase agreement, or any fittings or chattels are missing, get in touch with your lawyer immediately. They will let you know what your options are and can negotiate with the seller’s lawyer to rectify the situation.
The seller might decide to repair the damage immediately or may reduce the sale price by the cost of fixing the issue. This is why it is important to complete the pre-settlement inspection at least 2 days before settlement; to allow time for any unexpected negotiations to take place.
Full house insurance is usually a condition of the property finance and needs to be sorted prior to settlement day with provide proof of this insurance to your lawyer. The bank will most likely need to have them recorded on the policy as the interested party.
Once you have an unconditional approval, and a settlement date (to purchase a property or refinance) interest rates and structure will be confirmed with you. At that time, you can opt to ‘Ratelock’ or fix in your fixed rates. This can be up to 60 days before settlement date depending on the lender (most are 30 days).
For refixing a homeloan with an existing bank, ratelocking can be done before the homeloan is due to expire. This way it can rollover to the new agreed rate without going on variable. The time you can ratelock for existing loans is 30 days with most lenders.
To know more about the benefits of fixing interest rates, see the information on 'Fixed Loans' in the related guide on Home Loan Mortgage Types below.
When contacting your insurance provider to insure your new home, you will be asked numerous questions. When was the home built, what standard of build was it, what is the roof made out of, is it on a slope, are there retaining walls, elevators, tennis courts… and how much would you like to insure it for and where did this figure come from?
A building report or registered valuation may give a rebuild cost. It is common to use an online calculator, referred to as the Cordell Sum Sure calculator. This is an independent company that provides a building replacement value based on the answers you give. It does not consider every possible feature, nor does it provide advice and final responsibility is up to you. An insurance broker will be able to provide guidance.
While not necessary, if you're still in doubt you can contact a valuer, certified builder, architect, or quantity surveyor to assess.
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