Simultaneous settlement: buying and selling a home at the same time

A simultaneous settlement lets you use the proceeds from selling your home to help pay for your next home on the same day. It can save you a second move and the cost of bridging finance, but both transactions need to be ready together. If you are planning a same day settlement, organise the funding and contract conditions together.

The first checks are practical: how much cash will your sale leave after costs, how will you pay the purchase deposit before settlement, and what happens if either transaction is delayed?

Your current mortgage is paid out when your home sells. The remaining sale proceeds can then contribute to your next purchase, alongside your new home loan and any savings.

A solicitor or conveyancer coordinates the legal settlement with the lenders. Our steps to settlement guide covers the wider purchase process. Where the transactions are formally linked for simultaneous financial settlement in PEXA, they settle together. Simply putting the same date on both contracts does not create that link or make one contract conditional on the other.

Ask your conveyancer whether the transactions will be linked, what funds will pass between them and whether another sale or purchase is also in the chain. PEXA's service charter explains how its linked settlements operate.

If your next purchase depends on your sale settling, ask your solicitor whether the purchase contract needs a simultaneous settlement clause or another special condition. For a Queensland purchase, they should check the REIQ contract terms, any special conditions and the actual event your purchase depends on: signing a sale contract, completing that sale or receiving its proceeds.

The clause needs to address what happens if that event does not occur on time. Matching the dates on both contracts, or linking the transactions in PEXA, does not give you that contractual protection. Have your solicitor review both contracts before signing; do not copy a sample clause without advice.

Treat this as a planning checklist. Your contracts set the deadlines, and your lender and conveyancer need to confirm how much preparation time they require.

A longer settlement can give you more time to find a home. It does not give you an automatic right to bring settlement forward or extend it again. If you want that flexibility, have your solicitor negotiate and document it before you sign.

Do not assume that passing a cooling-off period makes your sale unconditional. Finance, inspection or other conditions may still be outstanding. Confirm the position with your solicitor before making a purchase commitment that depends on that sale.

This is where many buying-and-selling plans run into trouble. The deposit payable under your purchase contract may fall due well before your current home settles. Equity in your home is not cash sitting in your bank account.

Check the deposit amount and payment dates before you sign. Your options might include using savings, negotiating a smaller deposit, arranging approved borrowing or asking whether the seller will accept a deposit bond. A deposit bond is a guarantee, not money towards the final purchase price: you still need the full funds at settlement and must meet the issuer's terms.

If family will help, tell your broker whether the money is a gift or a loan. A repayable loan can affect your borrowing assessment. Do not rely on receiving your buyer's deposit early without legal advice and a confirmed release arrangement.

The difference between your property's value and its loan balance is only a starting point. Selling expenses, loan payout costs and settlement adjustments reduce the money available for your next home.

This is an illustration, not a fee quote or a lender assessment. Assume an $850,000 sale, a $300,000 mortgage payout and $25,000 in selling costs and adjustments. All sale proceeds in this example are available for settlement, and no tax is withheld.

Now assume the next home costs $1,200,000. You have already paid a $60,000 purchase deposit from separate savings, budgeted $45,000 for buying costs and adjustments, and arranged a new loan with a net advance of $660,000.

The $60,000 deposit was needed earlier. It is separate from the $525,000 sale proceeds, so it cannot be counted again as available cash at settlement. If the sale price falls by $20,000 and nothing else changes, you need another $20,000 or a revised, approved loan arrangement.

The example leaves no spare settlement funds. Keep moving expenses and an emergency buffer outside these figures, and replace every allowance with your actual quote or settlement statement.

For a Queensland purchase, use our stamp duty calculator as an estimate and check the result against Queensland Revenue Office guidance. Ask your conveyancer to confirm the separate Titles Queensland fees. If the home you are selling has been rented out or used to earn income, ask your tax adviser whether you need to keep money aside for capital gains tax; do not assume every dollar released at settlement is free to spend.

For relevant Australian property contracts entered into from 1 January 2025, foreign resident capital gains withholding can apply at 15% with no minimum property value. Australian resident sellers generally need to give the buyer a valid ATO clearance certificate before settlement to avoid withholding, even when selling their own home.

Each seller needs their own certificate. The ATO says processing can take up to 28 days, so leave time for it. On an $850,000 sale, 15% is $127,500: an unexpected withholding could leave a substantial gap in your next purchase. Your solicitor or tax adviser should confirm what applies to your sale. Read the ATO's clearance certificate instructions.

Before transferring any money, verify payment instructions with your conveyancer on a phone number you already know. Be especially cautious about an email changing the bank details. PEXA explains common settlement scams.

If your transactions are linked for simultaneous financial settlement in PEXA and one is not ready, both can be rescheduled. If one cannot complete financial settlement, neither proceeds. That protects the linked funding process, but it does not automatically extend your contractual deadlines.

If the transactions are only scheduled for the same day and are not linked, the position can be different. Your sale might complete while your purchase is still delayed. Confirm the arrangement beforehand rather than finding out with your belongings in a moving truck.

Your solicitor handles extensions and default rights. Your broker follows up the lender's funding requirements. The agent helps coordinate access and keys. Keeping those roles clear makes it easier to resolve the problem quickly. Ask your solicitor which default-interest rate and amount the contract uses before estimating a daily cost. Your broker should also confirm whether the lender can re-book the funds or needs anything refreshed for the new date.

In Queensland, REIQ residential contracts can include a clause allowing settlement extensions totalling up to 5 business days through the required notice process. This is not a blanket grace period for every property contract, and an extension on your sale does not automatically extend your purchase. Ask your solicitor to check the version you signed, special conditions and notice requirements. REIQ explains the settlement-date provisions.

Rules differ across states and contract forms. Do not assume a delay automatically entitles you to cancel, claim compensation or move in early.

Tell your broker from the start that the purchase depends on selling your current home. The lender needs to assess the loan you will have after the move and confirm how the existing mortgage will be paid out.

A loan approval may require the existing sale to settle before, or together with, the purchase. That lending condition does not protect you under the purchase contract if the sale fails. Have your solicitor check whether your contract conditions match the funding arrangement before you waive finance or other protections.

Pre-approval is also different from having the loan ready for settlement. The lender may still need a valuation, signed loan documents or evidence that the sale conditions have been met. Ask your broker which requirements remain outstanding and who is responsible for each one.

Moving your current loan to a new property may be possible through loan portability or a security substitution, if your lender permits it. It is not automatic, and a change in property, loan amount or timing may trigger further assessment and costs.

Bridging finance covers the gap between buying and selling. The bank checks your total debt while you own both properties, often called peak debt, against their combined value. This includes the existing loan, new borrowing and any costs or interest being financed.

An 80% limit is a useful starting point to discuss, not a universal approval rule. Westpac's public guidance caps borrowing at 80% of the combined property values. Other lenders may allow less room for borrowing or reduce the sale value used in their assessment. Check the expected debt after selling as well as the peak debt.

Some bridging loans add interest to the balance, called capitalised interest. Others require you to make interest-only payments during the bridging period. That difference can decide whether buying first fits your household budget.

For example, Westpac publishes no repayments during its bridging period, with interest capitalised. CBA requires interest-only payments and its guide says borrowers must demonstrate they can service interest on the total debt during the bridge. These are different funding arrangements, so ask for the repayments and final loan balance in writing. Westpac's bridging details and CBA's bridging guide explain their requirements.

Terms commonly run for 6 to 12 months, depending on the lender and transaction. For example, Beyond Bank's public bridging page allows up to 6 months for buying an existing home, or 12 months if building. CBA and Westpac publish terms of up to 12 months. Check that your sale will settle within the approved term. Signing a sale contract alone does not meet that deadline.

Bridging is not available from every lender, and access can depend on your existing loan. Beyond Bank, for example, limits its product to existing home loan customers. Your broker should check current availability, whether the existing mortgage must move and whether the whole arrangement can be approved in time. Do that before relying on a bridge to sign an unconditional purchase.

Ask for a comparison using a slower sale and a lower sale price as well as the expected result. Our bridging loan guide explains the questions to work through.

A family guarantee may help with security in some situations, but it does not remove the need to afford the loan or provide funds on time. Availability differs by lender and application channel. The bank may limit both the guarantee amount and the total borrowing secured against the guarantor's property; there is no single cap to apply across lenders. The guarantor takes on a financial risk, and their release later requires lender approval. Read about guarantor home loans before relying on family support.

Same-day settlement can make a direct move possible. It does not guarantee that the keys will be available at a particular hour.

Confirm vacant possession and key release arrangements with your conveyancer and agent. Ask the removalist what happens if settlement runs late, and keep essential belongings accessible if you need to stay elsewhere. Any early access or arrangement to stay after selling should be documented through your solicitor, with insurance and responsibility for damage addressed.

Check when your insurance responsibility starts under the contract. It may begin before settlement, so do not wait until moving day to arrange cover.