Education5 min read
Buying at Auction: Your Complete Finance Guide
Auctions require different financial preparation than private sales. Here is how to be auction-ready.
Raj Bhangu
Principal Mortgage Broker
12 January 2026
Key Takeaways
- 1Auctions have no cooling-off period - contract is unconditional when hammer falls
- 2Need 10% deposit on auction day and typically 30-60 days to settlement
- 3Get unconditional (not conditional) pre-approval before auction day
- 4Have specific property valued by lender, complete building inspection, and solicitor review before bidding
Buying at auction can be exciting but stressful. The key to success is having your finance sorted well in advance.
Why Auction Finance Is Different
- No cooling-off period. The contract is unconditional
- 10% deposit required on the day
- Settlement typically 30-60 days
- No finance clause. You must have funds
Essential Steps Before Auction Day
- Get unconditional pre-approval (not just conditional)
- Have the specific property valued by the lender
- Complete building inspection before auction
- Have your solicitor review the contract
- Arrange 10% deposit ready for auction day
Planning to buy at auction? Get unconditional pre-approval so you can bid with confidence.
RB
Raj Bhangu
Principal Mortgage Broker
FBAA MemberLicensed Credit Representative
Expert mortgage broker helping Australians achieve their property dreams with personalized home loan solutions.
Published: 12 Jan 2026