Most refinance applications in Australia take between three and six weeks from application to settlement.
Knowing what to expect during the refinancing process means you can time your application appropriately, particularly if your fixed rate period is ending soon or you need to access equity by a specific date. The actual timeline depends on your situation, how quickly you provide documentation, and whether your property requires a new valuation.
What Happens in the First Week
Your lender begins processing your application as soon as you submit it. Within the first few days, they'll request documents including recent payslips, tax returns, bank statements, and details about your current mortgage. If you're self-employed or have income from multiple sources, expect the lender to request additional verification.
Consider a borrower who recently changed jobs and submitted their application before receiving their first payslip at the new employer. The lender required a signed employment contract and a letter from HR confirming the start date and salary. This added five business days to the initial processing stage because the borrower needed to obtain documents they hadn't anticipated. Having all your income verification ready before you apply accelerates this stage significantly.
The Property Valuation Stage
Lenders typically order a property valuation within the first week of your application. The valuation itself takes one to three days to complete once the valuer attends your property, though scheduling the inspection can add another few days depending on availability in your area.
If the valuation comes back lower than expected, your loan amount may need adjusting or the lender might decline the application altogether. In our experience, properties in regional areas or those with unique features sometimes face delays at this stage because valuers need additional time to find comparable sales. Desktop valuations, where the lender uses existing data without an inspection, can reduce this timeframe to a few days but aren't available for all properties or loan amounts.
If you're looking to access equity as part of your refinancing, the valuation becomes particularly important as it determines how much you can borrow.
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From Approval to Settlement
Once your application receives formal approval, you'll receive loan documents to review and sign. This conditional approval stage typically takes one to two weeks from when you submit all requested documents. After you sign, your new lender contacts your existing lender to request a payout figure and arrange settlement.
The settlement period usually spans 10 to 14 days from when you sign your loan documents. During this time, your solicitor or conveyancer handles the legal transfer, the new lender prepares funds, and your existing lender calculates the final payout amount including any accrued interest. If you're refinancing as your fixed rate period is ending, timing this settlement to align with your fixed term expiry helps you avoid break costs.
As an example, a borrower with a fixed rate expiring on the 15th of the month submitted their refinance application six weeks earlier. Their new lender scheduled settlement for the 14th, allowing the existing loan to close on the final day of the fixed period. This coordination saved them approximately $3,200 in potential break costs that would have applied if they'd settled even one day earlier.
What Can Slow Things Down
Incomplete documentation is the most common cause of delays. Missing bank statements, unsigned forms, or outdated payslips can add one to two weeks to your timeline as you gather additional paperwork and resubmit.
Complex income structures extend processing time. If you earn income through a trust, company, or have multiple investment properties, allow an additional week for the lender to assess your financial position. Changes to your employment, income, or credit file between application and settlement can also restart parts of the assessment process.
Property-related issues including unclear title, existing caveats, or complications with body corporate documentation can delay settlement by several weeks. Before applying, conducting a loan health check helps identify potential issues that might affect your timeline.
Planning Your Refinancing Timeline
Start your application at least eight weeks before you need the refinancing to complete. This buffer accommodates unexpected delays while still allowing you to meet important deadlines such as fixed rate expiry dates or property settlement dates if you're releasing equity to buy the next property.
Respond to lender requests within 24 hours wherever possible. Every day you delay providing documents extends your overall timeline. Keep digital copies of all financial documents in one location so you can send them immediately when requested.
If you're refinancing to switch to variable or lock in a rate before anticipated rate movements, remember that rate offerings can change during the application period. Some lenders allow you to lock in a rate for 90 days from application, though this isn't universal across all loan products.
Call one of our team or book an appointment at a time that works for you. We'll review your specific situation, help you gather the right documentation upfront, and coordinate the timeline to align with your goals whether that's avoiding break costs, accessing equity, or securing a lower interest rate before your current arrangement ends.
Frequently Asked Questions
How long does a typical refinance take in Australia?
Most refinance applications take between three and six weeks from application to settlement. The actual timeline depends on how quickly you provide documentation, whether a property valuation is required, and the complexity of your financial situation.
What stage of refinancing usually takes the longest?
The property valuation and initial document assessment stages typically take the longest, especially if you have complex income or the property requires a physical inspection. Valuations can take one to three days once scheduled, but arranging the inspection may add several more days.
Can I speed up the refinancing process?
Yes, you can accelerate the timeline by having all documentation ready before applying and responding to lender requests within 24 hours. Starting your application at least eight weeks before you need it completed also provides a buffer for unexpected delays.
What happens if my fixed rate expires during the refinancing process?
If your fixed rate expires before settlement completes, you'll move to your lender's standard variable rate temporarily. To avoid this, start your refinance application six to eight weeks before your fixed term ends so settlement can align with the expiry date.
What documents do I need to prepare for refinancing?
You'll need recent payslips, tax returns, bank statements, and details about your current mortgage. Self-employed borrowers or those with investment properties should expect to provide additional income verification and potentially tax returns for the past two years.
