How Long Does Refinancing Take and What to Expect

Refinancing a home loan typically takes between three and six weeks from application through to settlement.

The timeline depends on how quickly your lender processes the application, how long the property valuation takes, and whether your financial situation raises any queries. A straightforward application with complete documentation and a property that values in line with expectations can settle in as little as three weeks. Applications that require additional income verification, involve complex property types, or trigger a longer valuation process may stretch closer to six weeks or beyond.

What Happens During the First Week

Your broker submits the application and supporting documents to the new lender within the first few days. The lender reviews your income, employment, existing debts, and credit history. If they need clarification on any item, such as a cash deposit or a recent change in employment, they will request additional documents. Responding to these requests within 24 hours keeps the application moving. Delays at this stage often come from missing payslips, incomplete bank statements, or questions about how you intend to discharge the existing loan.

Cornubia buyers refinancing established homes near Pacific Pines Road or around the Springwood Road corridor typically see straightforward valuations because the suburb has consistent sales data and a high proportion of detached houses on standard residential lots.

Property Valuation and Approval Timing

Once the lender is satisfied with your financials, they order a property valuation. This usually happens within the first week to ten days. The valuer inspects the property or conducts a desktop assessment, depending on the lender's policy and the loan amount. Desktop valuations can return in as little as 48 hours. Physical inspections may take up to a week, particularly if the valuer's schedule is full or the property is in a location they visit less frequently.

Formal approval typically follows within two to five days of receiving the valuation, assuming the property value supports the loan amount. If the valuation comes in lower than expected, the lender may reduce the approved loan amount or request a larger deposit. In that scenario, you may need to renegotiate terms or source additional funds before proceeding.

How Long Does Settlement Take After Approval

Settlement occurs between 14 and 30 days after formal approval. Your new lender prepares loan documents and coordinates with your solicitor or conveyancer to schedule a settlement date. Your existing lender must provide a payout figure, which includes the outstanding balance, any break costs if you are coming off a fixed rate early, and discharge fees. The new lender uses this figure to ensure they advance enough funds to clear the old loan and register the new mortgage.

Delay at this stage usually stems from one of three issues: the payout figure arrives late, the existing lender takes longer than expected to process the discharge, or there is a mismatch between the settlement date your solicitor requested and the date your new lender can fund. Requesting the payout figure as soon as you receive formal approval reduces the chance of a last-minute hold-up.

What Slows Down a Refinance Application

Incomplete documentation is the most common delay. Lenders require recent payslips, tax returns if you are self-employed, and at least three months of bank statements showing all accounts. If you have recently changed jobs, moved from permanent to contract work, or taken parental leave, the lender may ask for additional proof of income stability. Providing these upfront shortens the approval timeline.

Complex income structures also extend processing time. Business owners, contractors, and commission-based earners often need to supply ABN details, business financials, or contracts that confirm ongoing income. If your income varies month to month, the lender may take longer to assess serviceability. In our experience, clients who gather this documentation before lodging an application save at least a week.

Property-related delays occur when the valuation identifies issues such as structural concerns, unapproved renovations, or zoning that limits borrowing capacity. Rural properties, properties on large acreage, or homes with non-standard construction can trigger longer assessment periods. Cornubia properties near John Paul College or within the Springwood catchment area generally avoid these issues due to the suburb's established residential character and proximity to Logan.

Can You Speed Up the Refinance Process

You can shorten the timeline by preparing your documents before you apply. Request recent payslips from your employer, download bank statements covering the past three months, and locate your most recent rates notice. If you are refinancing to access equity, obtain a recent estimate of your property's value so you know whether your loan-to-value ratio supports the amount you need.

Responding to lender requests within 24 hours keeps the application in motion. Lenders process files in the order they receive complete information, so delays on your end push your application further down the queue. If your broker requests a document, treat it as urgent.

Choosing a lender with a faster turnaround can also help. Some lenders prioritise refinance applications and offer conditional approval within 48 hours. Others have slower credit assessment teams or require additional sign-offs for certain loan types. Your broker will know which lenders are currently processing applications quickly and which are experiencing backlogs.

What Happens If You Miss the Fixed Rate Expiry Date

If your fixed rate expires before your refinance settles, you will revert to your existing lender's standard variable rate. This rate is often higher than the variable rates available through refinancing, which means you may pay more interest for the period between expiry and settlement. Some lenders allow you to lock in a new rate while your refinance is processing, but this depends on their policy and whether you meet their criteria.

Consider a scenario where a Cornubia household has a fixed rate expiring in mid-year. They apply to refinance six weeks before the expiry date, anticipating a four-week settlement. The valuation takes longer than expected due to the valuer's schedule, and settlement pushes out to five weeks. The household reverts to the variable rate for one week, incurring additional interest. Starting the refinancing process eight to ten weeks before the fixed rate expires provides a buffer for unexpected delays and reduces the likelihood of reverting to a higher rate.

Call one of our team or book an appointment at a time that works for you. We will review your current loan, confirm the documentation you need, and coordinate the application to ensure your refinance settles within the timeframe that suits your circumstances.

Frequently Asked Questions