Off-the-Plan Settlement Help
When the bank pulls out, or the valuation comes in short

You bought off the plan two or three years ago. Settlement is now weeks away — and the loan you assumed would be there isn't: the bank's policy changed, the valuation came in under the contract price, or you've moved overseas since signing. This page sets out your options, in order. Written by Steven Shangguan, a licensed mortgage broker in Melbourne who works on exactly these files.

Last updated: 14 August 2026

1. Why this happens so often with off-the-plan

An off-the-plan contract locks the price on signing day, but the loan is assessed at completion — often two to three years later. In that gap, three things move:

• Lender policy. The bank that pre-qualified you then may not lend on the same terms today — some tighten on postcodes, property sizes or borrower types.
• The valuation. Lenders lend against the lower of the valuation and the contract price. If the valuation lands below contract, every dollar of shortfall is a dollar more cash you must bring.
• Your circumstances. New job, new home overseas, new family situation. If you now live overseas, you're assessed as a non-resident — a different and smaller lender panel, typically 60%–80% loan-to-value. See the non-resident loans guide.

2. The clock: when to start

No later than 6–8 weeks before settlement — earlier if your income is from overseas. Cross-border files move slower: documents travel, translations are needed, verification takes longer. Treat the settlement loan as a fresh application, not a formality left over from signing day.

3. Your options, in order

1. Run the whole lender panel at once. One lender's no is not the market's no — banks, non-bank lenders and non-resident specialists all read the same file differently. Re-arguing with the lender that already declined is usually the slowest possible move.
2. Test the valuation elsewhere. Valuers and results vary between lender panels. Ordering a valuation through a different lender sometimes closes part of the gap on its own.
3. Size the shortfall precisely. Shortfall = contract price − the lower valuation. Decide with real numbers whether to cover it with extra funds, adjust the loan structure, or switch lender — not with guesses.
4. Get your solicitor moving early. Ask what flexibility your contract allows on settlement timing and what notice the vendor requires. That conversation is far easier four weeks out than four days out.
5. If you're now overseas: go straight to the non-resident line — right documents, certified translations (some lenders specify NAATI-accredited translators), income converted to AUD and usually shaded. Don't spend two of your six weeks discovering that the mainstream bank can no longer take you.

4. What not to do

• Don't spend weeks in a back-and-forth with the lender that already said no.
• Don't wait for the developer's final notice to start the loan.
• Don't agree to anything about settlement timing without your solicitor across it.

5. Have these ready

Whichever lender the file goes to, you'll move fastest with: recent payslips, employment evidence or contract, tax records, bank statements showing salary credits, ID, the contract of sale, and — if any document isn't in English — certified translations. Non-resident applicants: see the full document notes.