At auction the hammer is final. Your finance needs to be settled before you raise your hand.
A private sale gives you a cooling-off period and you can make an offer "subject to finance". An auction gives you neither. On the fall of the hammer the contract is unconditional — no cooling-off, deposit due on the day. The way you win calmly is simple: be finance-ready, with formal approval in place, before you bid. Here's exactly what "ready" looks like.
The auction readiness countdown.
Every step that can be done before you bid, should be — because once the hammer falls there's no going back. Follow the sequence left to right; the moment marked in blue is the point of no return.
Formal approval before you bid
We work to get your application to formal (unconditional) approval on the specific property, so your finance is genuinely in place — not just an estimate — when you walk in.
Building & pest and the contract reviewed
You can't bid "subject to inspection", so inspections and a solicitor's contract review happen beforehand. If something's wrong, you find out before you're committed, not after.
You bid to a considered limit
Set your ceiling before the auction and hold to it. Your borrowing is assessed on the lower of price or valuation, so the number you bid has real consequences.
Fall of the hammer — unconditional, no cooling-off
The instant the hammer falls on your bid you are bound to buy. There is no cooling-off period at auction anywhere in Australia, and the contract is unconditional — you can't withdraw because finance or inspections weren't ready.
Sign the contract, pay the deposit
You sign and pay the deposit — usually 10% of the price — immediately, by the method the contract specifies (often bank cheque or transfer). Confirm the exact figure in the contract beforehand.
Settlement on the agreed date
The balance settles on the contract date (commonly around 30–60 days, as negotiated). Because your finance was formally approved up front, this stretch is about paperwork, not scrambling.
Timeline is a general guide to the auction process, not legal advice — rules and standard terms vary by state and by contract. There is no cooling-off period on a property bought at auction in any Australian state or territory. Confirm the deposit amount, method and settlement date in the contract, and have your solicitor or conveyancer review it before auction day. Not an offer of credit or a guarantee of approval.
Three rules that change everything about your finance.
No cooling-off period
Private-treaty buyers get a cooling-off window to change their mind. At auction you get none — the sale is final the moment the hammer falls, in every state and territory.
Unconditional — no "subject to"
You can't bid subject to finance, valuation or building & pest. Whatever due diligence you'd normally attach as a condition has to be finished before you raise your hand.
Deposit on the day
The deposit — usually 10% of the purchase price — is payable immediately on the day, by the method the contract sets out. Have it ready and cleared before you bid.
More room to negotiate — but the auction rules don't budge.
Clearance rates have softened, which can mean less competition and more considered bidding. It changes your strategy, not your obligations: the contract is still unconditional on the fall of the hammer.
Sources: Cotality (CoreLogic) auction market summary (combined capital cities, early July 2026, subject to revision); Reserve Bank of Australia cash rate (July 2026); NSW and QLD Government / Fair Trading guidance on buying at auction; state cooling-off periods per state guidance (NSW 5, QLD 5, VIC 3 business days for private-treaty sales). Cooling-off periods apply to private-treaty purchases only and never to auctions. Rules and penalties differ by state — confirm current details for your state.
If you bid past the valuation, you cover the gap in cash.
Your loan is assessed against the lower of the price you pay or the lender's valuation. Bid well above what the property values at and the lender funds a percentage of the lower figure — leaving a shortfall you have to make up yourself. There's no renegotiating after the hammer, which is why a considered bidding limit matters.
Illustrative figures only, not a valuation, an offer of credit, or a guarantee of approval or outcome. Valuations and lending percentages vary by lender, property and LVR. We help you weigh valuation risk and set a sensible ceiling before auction day.
What "ready to bid" actually means.
None of this can be done from the auction floor. Get it sorted in the weeks before, and auction day becomes far less daunting.
Formal approval in place
Application worked through to formal (unconditional) approval on the property, so your finance is confirmed, not assumed, before you bid.
Property checked with the lender
Some property types, locations or building styles are treated cautiously by particular lenders — we confirm the property fits before auction day.
A bidding ceiling that holds
A maximum bid set against your borrowing capacity and valuation risk — with a buffer — so you don't chase the room past what your finance supports.
Deposit funds cleared and ready
The deposit (usually 10%) available in the required form on the day, plus a plan for stamp duty and costs at settlement.
Building & pest and contract reviewed
Inspections done and the contract reviewed by your solicitor or conveyancer beforehand — because you can't attach conditions at auction.
Your broker reachable on the day
Questions answered before you bid and support straight after if you win — we're contactable, including auction Saturdays: 0424 406 977.
A note on rates and "being ready"
Owner-occupier variable rates currently sit broadly around the mid-6% range (average roughly 6.2%, RBA lenders' rates, May 2026) and move with the cash rate — so any figure you see is indicative and changes over time. Always compare the comparison rate, which folds in fees, rather than the advertised rate alone.
Being "finance-ready" means having your application formally approved before you bid. It is not a promise or guarantee of approval — every application is assessed by the lender on its own criteria, and approval is always the lender's decision. Rates, fees and figures shown are indicative only and not an offer of credit.
Buying at auction, answered straight.
Is there a cooling-off period when I buy at auction?
No. There is no cooling-off period on a property bought at auction anywhere in Australia. On the fall of the hammer the contract is unconditional and you're bound to complete the purchase — which is exactly why your finance and due diligence need to be sorted before you bid.
Can I bid "subject to finance" at auction?
No. Auction bids are unconditional — you can't make them subject to finance, building & pest or anything else. That's why we work to get your application to formal approval and have your inspections and contract review done before auction day.
What deposit do I pay if I win?
Usually 10% of the purchase price, payable immediately on the day by the method the contract specifies (often bank cheque or electronic transfer). Confirm the exact amount and method in the contract before you bid, and have the funds cleared and ready.
What happens if the lender values the property below my winning bid?
Your loan is assessed against the lower of the price or the valuation, so a low valuation can leave a shortfall you have to cover in cash on top of your deposit. Setting a considered bidding limit, and checking the property and your finance beforehand, helps manage that risk.
What if my finance falls through after I've won?
Because there's no cooling-off period at auction, you're contractually bound to complete. Failing to settle can mean losing your deposit and further liability to the vendor. This is precisely why being finance-ready — with formal approval in place before you bid — matters so much.
Can you get my finance formally approved before an auction?
We work to progress your application to formal (unconditional) approval, matched across our panel of 50 lenders, so you can bid with your finance already in place. Approval is always the lender's decision and subject to their assessment — our job is to prepare and present your file so it has the best possible run.
Auction coming up? Let's get you finance-ready.
Tell us about the property and your situation — we'll work toward formal approval, compare lenders across our panel, and help you set a bidding limit you can stand behind. No credit check to start.
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