How Long Does It Take to Refinance a Home Loan?

Many homeowners assume refinancing a home loan is a long and complicated process.

In reality, a straightforward refinance can often be completed relatively quickly, although the exact timeframe depends on the lenders involved, your financial situation and how quickly the required documents are provided.

Some refinances move smoothly from application to settlement, while others can take longer due to property valuations, lender assessment times or delays discharging the existing loan.

Understanding the refinancing process and what can cause delays can help you know what to expect before getting started.

Home Loan Review Series

Regularly reviewing your home loan can help you save money, improve your financial flexibility and ensure your loan continues to meet your needs.

Available guides:

✅ Is It Worth Refinancing My Home Loan?

✅ What Does It Cost to Refinance a Home Loan?

✅ How Long Does It Take to Refinance a Home Loan?

🔜 Can I Refinance to Access Equity?

🔜 Should I Stay With My Current Bank or Switch?

🔜 Home Loan Review (Complete Guide)

How Long Does Refinancing Usually Take?

There isn’t one set timeframe for refinancing a home loan.

A straightforward refinance may take a few weeks from application through to settlement, while more complex applications can take longer.

The timeframe can depend on:

• The lender you choose
• Current lender processing times
• Your employment and income type
• Whether a property valuation is required
• How quickly documents are provided
• How quickly your existing lender processes the discharge
• Whether the lender requires any additional information

If you’re refinancing for a particular reason or need the funds by a certain date, it’s important to allow enough time for the entire process.

What Are the Steps Involved in Refinancing?

While every refinance is slightly different, the process generally follows several key steps.

1. Review Your Current Home Loan

The first step is understanding what you already have.

This includes reviewing:

• Your current interest rate
• Loan balance
• Remaining loan term
• Repayments
• Loan features
• Fees
• Your future plans

From there, you can determine whether refinancing is likely to provide a genuine benefit.

2. Compare Your Options

Once your existing loan has been reviewed, suitable alternatives can be compared.

This isn’t just about finding the lowest interest rate.

It’s also important to consider loan features, lender policy, fees, repayment structure and whether the new loan supports your longer-term goals.

3. Gather Your Documents

Refinancing generally requires you to provide updated financial information.

Depending on your circumstances, this may include:

• Payslips
• Bank statements
• Home loan statements
• Identification
• Evidence of other debts
• Self-employed financial documents where applicable

Having everything ready upfront can help avoid unnecessary delays.

4. Property Valuation

The new lender may need to confirm the value of your property.

Depending on the property and lender, this could involve an electronic valuation, desktop assessment or physical inspection.

The valuation helps the lender determine your loan-to-value ratio and whether the proposed refinance fits within its lending policy.

5. Application and Assessment

Once the application is submitted, the lender reviews your financial position.

This generally includes assessing:

• Income
• Living expenses
• Existing debts
• Credit history
• Property value
• Overall borrowing capacity

The lender may request additional information before making a final decision.

If you’d like to understand how lenders assess these areas, read our Home Loan Assessment Series.

6. Formal Approval and Loan Documents

Once the lender is satisfied with the application, formal approval can be issued.

Loan documents are then prepared for you to review and complete.

It’s important to check these carefully and ensure you understand the loan before proceeding.

7. Discharge Your Existing Home Loan

Your existing lender needs to be instructed that you’re refinancing and that its mortgage over the property needs to be discharged.

This is an important part of the process and can sometimes be one of the slower stages.

Each lender has its own discharge process and timeframe.

8. Settlement

At settlement, the new lender provides the funds required to repay your existing home loan.

Your old loan is closed and the new lender’s mortgage is registered against the property.

Your refinance is then complete.

What Can Slow Down a Refinance?

Even straightforward refinances can occasionally experience delays.

Some common causes include:

Missing Documents

If the lender needs additional payslips, bank statements or other information, the application may not progress until these are provided.

Property Valuation Issues

A valuation coming in lower than expected can affect the proposed loan structure and may require the application to be reconsidered.

Complex Income

Self-employed income, overtime, allowances, commissions or multiple income sources can sometimes require additional assessment.

Lender Turnaround Times

Assessment times vary between lenders and can change depending on application volumes.

A lender that is quick today may not necessarily have the same turnaround time several months from now.

Existing Lender Discharge Delays

Even after your new loan is approved, your existing lender still needs to process the discharge.

This can sometimes add time between approval and settlement.

Can You Make Refinancing Faster?

There are several things you can do to help keep the process moving.

These include:

• Providing requested documents promptly
• Ensuring documents are complete and current
• Responding quickly to lender questions
• Completing identification requirements early
• Signing loan documents promptly
• Starting the discharge process as soon as appropriate

A well-prepared application can reduce unnecessary back-and-forth during assessment.

Do You Keep Paying Your Existing Home Loan While Refinancing?

Yes.

You should continue making your normal repayments to your existing lender until the refinance has settled.

Submitting a refinance application or receiving approval doesn’t automatically close your existing loan.

Your existing home loan remains active until settlement occurs and the loan is formally paid out.

When Does the New Interest Rate Start?

Your new home loan generally becomes active once the refinance settles.

At settlement, the new lender pays out the existing lender and your loan moves across to the new lender.

From that point, your repayments and interest are based on the terms of your new home loan.

What Happens to Your Offset Account and Direct Debits?

This is an easy part of refinancing to overlook.

If your existing offset account or everyday transaction account is linked to the lender you’re leaving, you may need to update:

• Salary payments
• Direct debits
• Subscription payments
• BPAY arrangements
• Automatic transfers

You should also make sure any funds held in an existing offset account are managed appropriately before the old accounts are closed.

Not every refinance requires you to change your everyday banking, so this will depend on the lenders and products involved.

Should You Close Your Old Accounts Straight Away?

Not necessarily.

It’s generally better to make sure the refinance has settled successfully and that your new loan and banking arrangements are operating correctly before closing any accounts that aren’t automatically closed as part of the refinance.

This also gives you time to move any direct debits or regular payments that may still be linked to the old account.

Common Refinancing Myths

“Refinancing Takes Months”

Not necessarily.

Many straightforward refinances can be completed within a few weeks, although lender turnaround times and individual circumstances can affect the process.

“My Old Loan Closes as Soon as I’m Approved”

No.

Your existing loan remains active until settlement and should continue to be managed normally in the meantime.

“Once I’m Approved, Settlement Happens Immediately”

Not always.

Your existing lender still needs to complete the discharge process and both lenders need to be ready for settlement.

Formal approval is an important milestone, but it isn’t the end of the process.

Why Work With a Mortgage Broker?

Refinancing involves several moving parts between you, your existing lender and your new lender.

A mortgage broker can help you:

• Review your existing home loan
• Compare suitable alternatives
• Prepare the application
• Coordinate the property valuation
• Respond to lender requirements
• Help manage the discharge process
• Keep you updated through to settlement

The goal is to make the transition between lenders as straightforward as possible while ensuring the refinance genuinely improves your position.

Frequently Asked Questions