How Long Does It Take to Refinance a Home Loan?

By Deltos Finance on March 19, 2024
how long does it take to refinance a home loan

Switching to a new home loan, also known as refinancing, is a wise move, especially when you want to take advantage of lower interest rates or access the equity in your property. But how long does it take to refinance a home loan in Australia? 

Refinancing may seem lengthy and overly complicated, but it can be swift and convenient with a good mortgage broker by your side. On average, refinancing home loans can take from four to six weeks. Of course, this timeline can be influenced by several factors, so it varies for every homeowner. To help you understand the refinancing process and the timeline involved, we will break down the different stages and what you can expect during each of these stages. 

The Stages of Home Loan Refinancing

Stage 1: Speaking to Your Lender

The first step in home loan refinancing is to speak to your lender or a mortgage broker to discuss your options and determine the best course of action. This initial conversation can take between 20 and 30 minutes, during which you can discuss your goals, preferred loan structure, and the documentation you’ll need to provide.

Stage 2: Sending Your Paperwork

After speaking to your lender or broker and exploring your options regarding new home loan rates and terms, the next step is providing all necessary identity and financial documentation. How long will it take? You can expect this stage to take one to two business days in your refinancing timeline, depending on how many documents are required and how quickly you can gather and submit them.

Stage 3: Organising Property Valuation

A home loan refinancing won’t be complete without property valuation since it enables your new lender to gauge the maximum loan amount they can offer. 

You can expect your lender to organise a property valuation and inspection around the third day after you apply for refinancing. The valuation can take varying amounts of time, depending on the lender’s requirements and whether it’s done remotely or physically. Just to give you a rough estimate, a remote valuation can be done in a few hours, while a physical valuation generally takes five business days. 

Stage 4: Reviewing Loan Application 

After the property valuation is complete, your lender will review your loan application, which can take one to two weeks. During this stage, your lender will assess your financial situation, credit history, and the property’s value to determine whether you’re eligible to refinance or switch to a new home loan.

refinancing your home loan

Stage 5: Processing Loan Approval and Settlement

Once your loan application has been approved, your lender will provide you with a loan offer, which you’ll need to review and sign. The settlement process can take one to two weeks. During that time, your new lender will finalise the loan and arrange for the transfer of funds to discharge or pay out your old loan. After that, you will receive new documentation for your new mortgage and begin making repayments on your new loan, which ideally should be better than your old loan.  

To Sum It Up

So, how long does it take to refinance your mortgage? In summary, it can take four to six weeks, depending on the complexity of your financial situation, the lender’s criteria and processes, and the amount of documentation required. Suppose you want to ensure a smooth and efficient refinancing process. In that case, it’s essential to gather all the necessary documentation, have a good credit history, and present an error-free loan refinancing application complete with all the relevant paperwork.

If you’re considering refinancing your home loan, speak to a reputable mortgage broker who can guide you through the process, help you find the best home loan product for your needs, and expedite the process. With the right support and guidance, you can refinance your home loan and reap the benefits it offers.

How Can a Mortgage Broker Help with Refinancing Your Home Loan?

Now that you have an idea of how long the process is to refinance a house in Australia, it’s time to discuss how a mortgage broker can exactly help you:

  • Understanding Your Needs: Mortgage brokers, especially those with years of experience in refinancing, can help you understand the complexities of different mortgage features and which ones suit your current and future needs. They can scour and compare different loan options on your behalf.
  • Connecting You to Multiple Lenders: Brokers typically work with a panel of lenders, each offering various home loan options. They can provide you with more options to choose from compared to directly approaching a lender.
  • Providing Expert Advice: Mortgage brokers are trained to offer advice on home loans and help you make informed decisions about your refinancing options. You can also count on them to help you point you in the right direction during the application process and help settle issues that may arise.
  • Negotiating on Your Behalf: Brokers can negotiate with lenders on your behalf, potentially securing better deals and rates for your refinancing needs.
  • Skipping the Legwork: By working with a broker, you can save time and effort researching, shopping and comparing different home loan options. They can handle the legwork for you, making the process more convenient and faster.
  • Providing Ongoing Support: Mortgage brokers can provide ongoing support throughout the refinancing process, ensuring you are well-informed and confident in your decisions. 

Speak with Hobart’s Best Mortgage Brokers Today

If you live in Hobart (or any part of Tasmania) and want to learn more about how refinancing home loans, Hobart’s #1 mortgage broking team is here to help. 

Our brokers have years of experience assisting clients in switching to new mortgages and helping them reduce their monthly repayments and enjoy better loan features. We have also helped clients consolidate debts or purchase investment properties by refinancing to new mortgages and accessing equity in their homes. It’s time we do the same for you. Reach out to us now and start exploring your refinancing options. 

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