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Auction Finance

Bid with confidence. Settle on time.
Hold the deposit.



Auction finance is short-term property funding structured around the unique pressure of auction settlement. Australian auction contracts are unconditional and have no cooling-off period - once the hammer falls, you've signed. Settlement is typically 30 days. Miss it and the deposit is forfeit, with the vendor entitled to pursue further losses. Commercial Property Funding settles auction-finance loans in days, not weeks - giving buyers the certainty to bid and the breathing room to settle on time.

Overview

  • Loan SizeUp to $7 million
  • Maximum LVRUp to 75% LVR
  • Loan Terms1 to 12 months
  • Property SecurityVacant land, houses, units, duplex, or completed developments
  • Loan Structure1st or 2nd mortgage - keep your existing bank loan in place
  • RepaymentsNo monthly debt servicing - interest can be capitalised
  • VerificationAsset-led - no tax returns or full serviceability test
  • Pre-Bid IndicationIndicative terms before auction day, on application
  • Settlement SpeedLetter of Offer in 48 hours; settlement within 7 days of executed docs
  • LocationAvailable across all Australian states and territories
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Auction finance is short-term property funding structured around the unique pressure of auction settlement. Australian auction contracts are unconditional and have no cooling-off period - once the hammer falls, you've signed. Settlement is typically 30 days. Miss it and the deposit is forfeit, with the vendor entitled to pursue further losses. Commercial Property Funding settles auction-finance loans in days, not weeks - giving buyers the certainty to bid and the breathing room to settle on time.

How Auction Finance Works

Auction finance solves a specific problem. When you buy at auction, the contract is unconditional from the moment the hammer falls - there's no cooling-off period, no finance-subject-to clause, no chance to walk away. The deposit (usually 10% of the purchase price) is forfeit if settlement doesn't complete on the contract date, and the vendor can pursue you for any shortfall on resale. That makes the question simple: can your finance settle in time?

Most bank approvals can't move at auction speed. A typical bank loan takes weeks of credit assessment, valuation, serviceability review, and document preparation - too slow for a 30-day settlement clock that's already running. Auction finance is structured differently. The loan is assessed on the property and the exit strategy rather than borrower serviceability, with a Letter of Offer issued within 48 hours of a complete submission and settlement within seven days of executed loan documents. On a 30-day settlement, that leaves a comfortable buffer.

Auction finance is used in two distinct moments. Before the auction, smart bidders arrange indicative finance terms and bid with confidence, knowing exactly what they can settle. After the auction, when bank finance has fallen through or was always going to be too slow, auction finance steps in to settle the contract before the deposit is at risk. Both scenarios run on the same product, structured around the same seven-day settlement capability.

Why Borrowers Use Auction Finance

  • img Settle within seven days of executed documents - well inside the auction clock
  • img Indicative terms available before auction day
  • img Bid with confidence, knowing finance is in place
  • img Step in fast when bank finance falls through after the hammer
  • img 1st or 2nd mortgage - no need to refinance an existing bank loan
  • img Asset-led assessment - no tax returns or full serviceability test
  • img No monthly repayments - interest capitalised through the term
  • img Available to company and trust borrowers

When Auction Finance is Used

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Pre-Bid Auction Confidence

Arranged before auction day. Indicative terms in place so the buyer knows their settlement capability and bids with certainty.

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Bank Finance Won't Settle in Time

Won the auction, applied to the bank, the timeline doesn't stack up. Auction finance steps in to settle the contract on time.

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Bank Approval Withdrawn After the Hammer

Pre-approval was in place but the bank's final assessment came back negative. Auction finance covers settlement period.

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Auction Acquisition for Development

Site purchased at auction with development intent. Auction finance settles the acquisition; the loan refinances later.

Auction Coming Up - or Already Won One?

Submit your scenario for assessment or speak with our team about auction finance for your bid or settlement.

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Auction Scenarios We Fund

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Residential property auctions - houses, units, and duplex
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Commercial property auctions - office, retail, industrial
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Land and development site auctions
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Mortgagee-in-possession and receiver auctions
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Pre-bid finance arrangements before attending an auction
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Post-auction settlement rescue when bank finance falls short
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Auction acquisitions intended for development or refinance

frequently asked questions

Auction finance is short-term property-secured funding structured for the timing of an auction settlement. Australian auction contracts are unconditional with no cooling-off period, so finance has to settle inside the contract deadline - typically 30 days - to protect the deposit. Auction finance is built to move at that speed.

Yes - and it's strongly recommended. Submitting your scenario before auction day allows indicative terms to be confirmed in advance, so you bid with certainty about your settlement capability rather than scrambling after the hammer falls. Pre-bid arrangements don't lock you in to buying any specific property.

A no-cost, no-obligation Letter of Offer is issued within 48 hours of a complete submission, with settlement typically within seven days of executed loan documents. On a 30-day auction settlement, that timeline leaves comfortable buffer for due diligence, valuation, and document preparation.

Missing auction settlement is a serious matter. The deposit (usually 10% of the purchase price) is typically forfeit, and the vendor can resell the property and pursue the buyer for any shortfall on the resale price plus costs. The purpose of auction finance is to ensure that doesn't happen - by settling well inside the contract deadline.

Yes. This is one of the most common auction-finance scenarios. Bank pre-approvals are conditional on a final assessment that often takes weeks and can come back negative because the valuation is short, serviceability tightens, or the bank's policy on the asset class shifts. Auction finance can step in to settle the contract on time, and the borrower can pursue a longer-term refinance after settlement without the auction-clock pressure.

Up to $7 million, at up to 75% of the value of the property. The exact lend depends on the property type, location, and the structure of the deal - including any existing equity in another asset that's also being used as security.

No monthly debt servicing is required. Interest is capitalised into the approved loan amount and the full balance is repaid at the end of the term, when the agreed exit takes place - typically a refinance to a longer-term facility once the auction-clock pressure is gone.

Yes. Auction finance can be structured with security across the auctioned property and one or more existing assets, which can lift available borrowing and reduce cash deposit requirements. This is particularly useful for buyers carrying equity in another property they don't want to sell or refinance immediately.

The most common exit is a refinance to a longer-term facility once the auction-clock pressure is gone - either a bank loan that's had time to complete properly, a CPF long-term facility, or the sale of an existing asset that was always intended to fund the purchase. The exit is locked in upfront so the loan term matches the timing realistically required.

Pricing is structured around the deal - the property security, loan size, term, and exit strategy. Indicative pricing is provided on request and confirmed in the no-cost, no-obligation Letter of Offer. Contact our team for current terms on your specific scenario.

Yes. Auction finance is available to company and trust borrowers, including special-purpose vehicles structured for a specific deal - the standard structure for most professional buyers acquiring at auction.

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