When do you make first mortgage payment in Australia?

In Australia, your first mortgage payment is typically due one month after the settlement date (the day that property ownership officially transfers to you and the loan funds are disbursed). This timeline can vary depending on the lender and specific loan agreement, so it’s essential to confirm the exact details with your lender. Preparing for this payment involves setting aside funds in advance and considering automatic payments to ensure timely and stress-free management of your mortgage obligations.

Understanding when you need to make your first mortgage payment is crucial for new homeowners. This knowledge helps in planning your finances and ensuring you meet your obligations on time. This article will explore the timeline and factors influencing your first mortgage payment, providing clear and practical information to help you manage this important aspect of home ownership.

Understanding the Mortgage Process

The journey to securing a mortgage involves several key steps. Initially, you apply for a mortgage and receive conditional approval from your lender. After this, you will need to meet any conditions set by the lender, such as providing additional documentation or satisfying certain financial criteria. Once these conditions are met, you receive unconditional approval, leading to the settlement process where the loan funds are transferred, and the property ownership changes hands. Your first mortgage payment timeline is closely tied to these milestones.

When is the First Mortgage Payment?

Generally, your first mortgage payment is due one month after the settlement date, although this can vary depending on the lender and specific loan agreement. The settlement date is when the property ownership officially transfers to you, and the lender disburses the loan funds. Some lenders may allow a grace period before the first payment is due, while others might require the payment sooner. It's essential to confirm the exact timeline with your lender. For example, if your settlement date is on the 15th of the month, your first payment might be due on the 15th of the following month. If you have opted for fortnightly or weekly repayments, then this would also bring the date of the payment forward.

What is the Settlement Date?

The settlement date marks the official transfer of the property and the disbursement of the loan funds by your lender. This date plays a critical role in determining when your first mortgage payment is due. Typically, your first repayment is due one month from this date, giving you time to settle into your new home and manage your finances. Being aware of the settlement date will help you prepare for your first payment and avoid any surprises.

Types of Mortgage Repayment Schedules

Mortgage repayment schedules can vary, with options including monthly, fortnightly, or weekly payments. The frequency of your payments can affect the timing of your first mortgage payment. For instance, if you opt for fortnightly payments, your first payment might be due two weeks after the settlement date, rather than a full month. It's important to choose a repayment schedule that aligns with your financial planning and cash flow management.

Coordination with Lenders

Effective communication with your lender is key to understanding when your first mortgage payment is due. Your lender will provide you with a payment schedule detailing when each repayment is due. Confirm the date, amount, and method of your first payment with your lender to ensure there are no misunderstandings. Setting up automatic payments can help you stay on track and avoid missing any due dates.

Tips for Preparing for Your First Payment

Preparing for your first mortgage payment involves careful financial planning and budgeting. Start by setting aside funds to cover your first payment well in advance of the due date. Consider setting up an automatic payment system to ensure timely payments. Additionally, review your household budget to accommodate this new expense and avoid financial strain.

Frequently Asked Questions

When is the first mortgage payment due?

Typically, your first mortgage payment is due one month after the settlement date, but this can vary based on your loan agreement.

Can the first payment date be adjusted?

Some lenders may offer flexibility with the first payment date, but this should be confirmed during the loan setup.

What happens if I miss my first payment?

Missing your first payment can lead to late fees and potentially impact your credit score, so it's crucial to plan ahead and ensure timely payment.

Do I need to set up automatic payments for my mortgage?

While not mandatory, setting up automatic payments is recommended to avoid missed payments and ensure your mortgage is paid on time.


Understanding when your first mortgage payment is due is essential for effective financial planning and stress-free home ownership. By knowing when your repayments need to be made, and preparing in advance, you can confidently manage your mortgage repayments. 

You may also like

Get in touch

0 of 350