Beginner's Guide to Refinancing Timeline Expectations

Most refinancing applications in Kedron take between three and six weeks from initial conversation to settlement.

The timeline depends on how quickly your current lender releases the mortgage, how responsive your new lender is with valuation and assessment, and whether your financial position has changed since you took out your original loan. If you're coming off a fixed rate and want to lock in a new arrangement before reverting to a higher variable rate, understanding each stage of the process helps you plan the switch without leaving yourself exposed.

What Happens Before the Application Goes In

Before a formal application is lodged, your broker reviews your current loan structure, your income documentation, and your goals for the refinance. This stage typically takes one to two weeks, depending on how quickly you can provide payslips, tax returns, and statements.

Consider a Kedron household holding a loan of $550,000 at 6.2% with their fixed period ending in two months. They want to move to a variable product with an offset account and access $80,000 in equity for investment purposes. The broker compares their current loan against products from four lenders, confirms their serviceability at the new loan amount, and identifies which lender will value the property closest to recent comparable sales in the area. Once the structure is settled and documents are ready, the application is submitted.

If your income has changed, you're self-employed, or you've recently switched jobs, this stage can extend to three weeks. Lenders assess serviceability on current income, so if your most recent tax return shows lower earnings than the year before, the broker may need to explain the context or provide additional documentation to support the application.

How Long the Lender Takes to Assess and Value

Once the application is lodged, the lender orders a valuation and begins credit assessment. Most lenders complete this stage within seven to ten business days, though some take longer during busy periods or if the valuer cannot access the property.

The valuation itself usually occurs within three to five days of being ordered. If you're refinancing a property in Kedron near Kedron Brook or close to the schools around Lutwyche Road, valuers are familiar with the area and recent sales data is readily available. Properties in less frequently transacted streets or those with non-standard features, such as large subdivided blocks or significant renovations, may require additional assessment time.

If the valuation comes in below the amount required to support your loan, the lender may reduce the approved amount or request a larger deposit. In some cases, ordering a second valuation from a different valuer resolves the issue, but this adds another week to the timeline.

What Happens During Formal Approval and Documentation

Formal approval is issued once the lender has reviewed the valuation, verified your income, and completed credit checks. This stage takes between two and five business days in most cases.

Once approval is issued, the lender prepares loan documents and sends them to you for signing. You'll also need to arrange settlement with a solicitor or conveyancer, who will coordinate the discharge of your existing mortgage and the registration of the new one. This stage adds another five to seven business days, depending on how quickly you return signed documents and how responsive your current lender is with providing discharge information.

Your current lender is required to process a discharge request within a set timeframe, but some lenders take longer than others. If you're refinancing from a non-bank lender or a smaller institution, expect the discharge process to take closer to two weeks. Major banks typically process discharges within seven business days.

How to Avoid Delays That Extend the Timeline

Delays usually occur when documentation is incomplete, when the property valuation requires a second opinion, or when your current lender is slow to provide discharge figures. You can reduce the likelihood of these delays by providing all requested documents upfront, ensuring your solicitor is briefed early, and confirming that your property is accessible for the valuer.

If you're planning to refinance your home loan and access equity at the same time, delays are more common because the lender needs to confirm the purpose of the equity drawdown and may require additional documentation. Equity released for investment purposes generally requires a contract of sale or evidence of the intended purchase, which can extend the timeline by one to two weeks if you're still searching for the investment property.

In our experience, clients who engage a broker early, provide complete documentation within 48 hours of the initial conversation, and keep their solicitor informed throughout the process typically settle within four weeks. Those who wait until the last minute or provide documents in stages often extend the timeline to eight weeks or more.

When to Start the Process If You Have a Fixed Rate Ending

If your fixed period is ending within the next three months, start the refinancing conversation at least six weeks before expiry. Most lenders allow you to lock in a new rate up to 90 days before settlement, which means you can secure your new arrangement before reverting to the higher revert rate on your current loan.

Waiting until the fixed period has already ended leaves you exposed to the revert rate, which is often 1% to 2% higher than the lowest variable products available. On a loan of $500,000, that difference costs an additional $5,000 to $10,000 per year in interest, depending on the margin.

If you're considering whether to switch to variable or lock in another fixed term, your broker can model both scenarios based on your current rate, the rates available now, and your intended holding period. The refinancing timeline is the same regardless of which product you choose, but the decision itself should be made early enough to allow the process to complete before your current arrangement expires.

What Settlement Day Looks Like

Settlement occurs when your solicitor coordinates the discharge of your old loan and the registration of your new one. Funds are transferred from the new lender to your current lender, any additional equity is released into your nominated account, and the new mortgage is registered on title.

You don't need to attend settlement in person. Your solicitor handles the process on your behalf, and you'll receive confirmation once it's complete. From that point, your repayments switch to the new lender, and you can start using any new features such as an offset account or redraw facility.

If you've refinanced to access equity, the funds are typically available within one to two business days of settlement. Some lenders release equity immediately, while others require a short processing period before the funds appear in your account.

Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions