Quick answer
A settlement statement is the document that reconciles every dollar moving at settlement. For a property purchase it shows the price, deposit, rate and levy adjustments and the balance payable. For a business loan it starts with the gross loan, deducts fees and any prepaid interest, lists debts paid out directly, and shows the net amount reaching your account. Check it before settlement, not after.
Key points
- Lists every deduction between the approved loan amount and the cash you actually receive
- Property versions apportion council rates, water and strata levies by the day
- Usually issued a few days before settlement, so there's time to query errors
- The net advance can be far lower than the headline loan once fees and payouts come off
Approvals talk in round numbers. Settlement statements deal in exact ones. This is the sheet that shows, line by line, how the money in a transaction is split up on the day: what comes off, who gets paid, and what’s left for you. Lenders sometimes call it a funds disbursement or a settlement sheet, and conveyancers often call their version the adjustment sheet.
What’s on a business loan settlement statement?
Here’s an illustrative statement for a Perth electrical contractor taking a $250k property-secured loan to clear an ATO debt and a supplier account:
| Line | Amount |
|---|---|
| Approved loan amount (gross) | $250,000 |
| Less establishment fee | –$5,000 |
| Less lender’s legal fees | –$2,200 |
| Less valuation fee | –$1,100 |
| Less prepaid interest, first three months | –$9,000 |
| Less direct payment to the ATO | –$120,000 |
| Less direct payment to electrical wholesaler | –$40,000 |
| Net to business account | $72,700 |
The owner asked for $250k and will repay $250k, plus ongoing interest. Yet only $72,700 lands in the bank. Nothing is wrong here; the other money did exactly what it was borrowed for. But if the owner was counting on $90k of spare working capital, the statement tells them before settlement that they’ll fall short.
That’s the main reason to read it closely. Our loan cost comparison calculator can help you see the total dollar cost of two offers once fees like these are included.
What’s on a property settlement statement?
When a business buys premises, the statement looks different. It starts with the purchase price, subtracts the deposit already paid, then applies adjustments: council rates, water charges and any strata levies, divided between seller and buyer by the number of days each owns the property in the billing period. Land tax can also be adjusted in some states, depending on the contract. The bottom line is the balance the buyer must pay at settlement, often split across several cheques or electronic payments to the seller, the seller’s lender and others.
If the purchase is funded by a loan, there will usually be two statements: one from the conveyancer for the property and one from the lender for the loan. The figures need to agree with each other.
Paying an ATO debt or settling a purchase? Start a quick enquiry here.
Five lines worth checking
- Fees against the letter of offer. Any fee on the statement should already appear in your offer. New ones deserve a question.
- Payout figures and their expiry dates. A payout letter valid to last Friday may be short by several days of interest.
- Bank account details for every payee. Ring the payee on a number you found independently to confirm them; payment redirection scams target settlements.
- Prepaid or retained interest. Know how many months are held back and whether any unused portion is refunded if you repay early.
- The net figure. Make sure it still covers what you need the cash for.
Our guide on how fees change the cost of a loan explains why two loans of the same size can deliver very different net amounts.
Related terms: settlement, drawdown, discharge of mortgage.
Want a loan where the numbers are clear upfront?
A good lender shows you the expected fees and payouts long before the settlement statement arrives, so the final sheet holds no surprises. Tell us what the money needs to cover, including any debts to be paid out on the day. It’s a sixty-second form, there’s no credit check involved in sending it, and it isn’t distributed to other lenders. Someone from our team works through it personally and calls you back. Accurate figures for those payouts make it far easier to size the loan so the net amount still does its job.
Frequently asked questions
Who prepares the settlement statement?
On a property purchase, the seller's conveyancer or solicitor usually prepares the adjustment figures and the buyer's representative checks them. On a loan, the lender or its solicitors prepare a funds disbursement or settlement statement showing how the advance will be paid.
When should I receive it?
Ask for it a few business days before settlement. That gives you time to check payout figures, fee amounts and bank account details. If it only arrives on the morning of settlement, ask your adviser to walk you through it before anything is signed off.
Why is my net loan amount less than the approved amount?
Because fees, prepaid interest and any debts the lender pays out directly are taken from the gross advance. The settlement statement is where these show up together. Compare each line with your letter of offer, which should list the same fees.
What are adjustments on a property settlement statement?
Adjustments share ongoing costs like council rates, water charges and strata levies between buyer and seller based on who owns the property on which days. If the seller has prepaid rates past settlement, the buyer reimburses that portion, and vice versa.
Can a settlement statement change after it's issued?
Yes. Payout figures can expire, a council might issue a new notice, or a fee might be corrected. Ask to be told of any change and check the final version that the settlement actually runs on.