Home loan refinancing process and timeline

Learn about the 5 simple refinancing steps that can save you now and in the future

The process of switching to a new home loan otherwise known as refinancing, may sound like a hassle, but it can be surprisingly easy, especially with an FND Broker by your side.

It’s important to remember that just like when you received your first home loan, when it comes to refinancing, there is no one-size-fits-all solution. It’s a matter of finding the home loan that meets your particular needs now and in the future – both personally and financially.

Looking for a better home loan deal?

See if you can save by comparing loans from 25+ lenders in minutes.

Compare rates

You might be interested in: Do you need a deposit to refinance?

What is the refinance process timeline?

The refinancing process can be summarised in five simple steps:

1. Understand your financial goals and reasons to refinance

Before you decide to refinance, think about your goals. Are you looking for a lower interest rate? Do you want to add loan features that could help save you on interest or take away loan features you’re no longer using? Do you want to switch lenders? Getting support from an FND Broker can help you understand what deals and offers are available on the market and how you can benefit.

They will take the time to get a clear picture of your needs and your current situation to help you find the right loan for you. You might be interested in: Refinancing costs and stamp duty

2. Research your home loan options

After you’ve had a chance to speak to a broker, it’s time to do some research.

While you can take the time speaking to different lenders about the home loans they have to offer, you can save time by comparing home loans online.

Ask an FND Broker which loans you might be eligible for to help you streamline your search.

At this stage, it’s a good idea to ask any questions you have about the refinancing process and what documents you’ll need to provide in your specific situation.

3. Submit an application for your new loan

Once you’ve chosen your preferred option, the application process works in much the same way as when you applied for your existing loan. In some cases, your home may need to be re-valued. This step will be confirmed by your broker if it’s required. They will then prepare all the paperwork, and once signed, submit it to the lender.

You might be interested in: Documents required when refinancing

4. Discharge your existing loan and settle your new loan

Once you’re approved for your new loan, your broker and new lender can let your current lender know that you’d like to pay out — or discharge— your existing loan.

When your current lender knows the exact date of settlement, you’ll be given a final pay out figure. Your broker will keep you informed throughout the process but will manage it all on your behalf.

From there, your new lender will pay out your old loan.

Planning to refinance to reduce your interest?

See how much you can save and calculate your potential new repayments.

Let's talk now

5. Continue making repayments on your new loan

You can then expect to receive new documentation for your new loan and begin making repayments on your new loan.

How long does it take to refinance a house?

The timeline of refinancing a house is similar to any other type of property.

If you’re wondering how long refinance settlement takes end-to-end, the entire refinancing process typically takes anywhere from a couple of days to just over a month.

This will largely depend on the lender’s processing times, your preparedness and the complexity of your loan.

In most cases, you’ll have your new loan within two months of beginning the process.

What happens at refinance settlement?

On settlement day, your old home loan will be discharged and paid in full by your new lender Typically, your new lender will take care of this process, including:

• Working with your previous lender to settle and discharge your old mortgage and registering a new home loan for you

• Ensuring all funds are allocated appropriately and that your accounts are set up properly

• Letting you know when your first loan payment is due, as well as the amount and frequency of future payments.

Looking for free expert support?

Get in touch with an FND Broker who can guide you through the refinance process.

Let's talk

Valuing your property when refinancing

When you’re looking to refinance, your new lender may want to value your home.

Valuing the property will determine the amount of money they’re willing to lend you. Some lenders may charge you a fee for this valuation.

Your broker will factor this into the numbers to be sure that refinancing is right for you.

Refinancing isn’t as difficult as it may seem, especially when you don’t have to do it alone. If refinancing is on your ‘to do’ list, book a free appointment with an FND Broker to review your loan. You could end up saving thousands in the long run.