How long does refinancing take?

Refinancing your home loan could offer lower interest rates, useful loan features or give you access to home equity. But how long does refinancing take?

Generally, a standard home loan refinance application could take anywhere from one to six weeks, depending on the lender and the complexity of the loan. 

To help you better understand how to get a home loan refinance, we’ve provided an overview of the process below and tips on how to avoid delays on your application below. 

How does the home loan refinancing process work? 

The refinancing process is similar to a standard home loan application. Here’s a summary of what to expect when you apply for a home loan refinance: 

Submit your documents 

Once you’ve found the right home loan refinance option, it’s time to submit your application. Make sure you have all the relevant documents on hand, such as payslips, three months of bank statements, rental income evidence, ID, any loan statements, a copy of your rates notice, and six months of your current home loan statements. 

Property valuation 

Your new lender will require a property valuation of your home. A property valuation is used to calculate a borrower's LVR. Where LVR is above 80%, Lenders Mortgage Insurance (LMI) is required. Your lender will be looking to see the value of the property to help determine the loan amount they can provide to you.

Approval and settlement 

When your lender has inspected your paperwork and deemed your credit history satisfactory, your loan will be approved. Once you’ve received your approval, you will get your settlement date, at which point your lender will arrange to pay off your existing loan. As soon as this goes through, you will officially begin making loan repayments to your new home loan lender. 

Tips when refinancing a home loan 

Here are a few tips to keep in mind when you’re looking for a home loan refinance or starting your application. 

Understand your financial situation 

Analyse why you want to refinance and ultimately whether it’s your best option. This will help you and your home loan lender narrow down which loan type and interest rate will suit you. 

Review your current interest rate and the time you have remaining on your current loan versus fixed and variable rate options on the market to work out how different your repayments will be, and if it makes financial sense to refinance. 

Compare loan options 

Talk to your lender about other available loan products that may suit you. By having a chat with them, they may be able to offer you a better deal and ultimately save you the stress of switching lenders. 

Or if you’re looking at switching, do some extensive research to see which lenders are offering competitive rates and who has useful features. 

Prepare the documents needed to refinance 

To ensure your chances of getting your home loan refinanced run as smoothly and quickly as possible, you want to make sure you provide all the relevant documentation. Here is a list of the paperwork you will likely need to show when refinancing: 

• Proof of income (payslips, tax assessment notice, a letter from your employer regarding salary) 
• List of existing loans and expenses (credit card statements)
• Personal information (driver's license, passport, birth certificate) 
• List of current assets (savings, shares, vehicles, high-end art, etc.) 
• Repayments (recent home loan repayment statements) 

If you’re ready to refinance, check out our competitive refinancing home loans or chat to one of our lending specialists today to help you explore your options. 

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