Do you know how long refinancing really takes?

Most refinancing applications in Altona take between three and six weeks to settle, though the actual timeline depends on how quickly documents move between your current lender, the new lender, and your solicitor.

How long does a refinancing application take to process?

A standard refinancing application typically takes four to six weeks from submission to settlement. The new lender needs one to two weeks to assess your application and issue formal approval, then another two to three weeks for discharge and settlement once you accept the loan offer. That timeline assumes your income documentation is current, the property valuation comes back at or above the amount required, and your existing lender processes the discharge request without delay.

Consider a property owner in Altona who submitted a refinancing application on a Monday with two years of tax returns, recent payslips, and bank statements already prepared. The new lender ordered a valuation within two days, formal approval arrived within ten days, and settlement occurred three weeks after that. Total time from application to new loan: five weeks. The difference between a five-week settlement and an eight-week settlement usually comes down to whether documentation was ready upfront or requested in pieces after the application started.

What slows down the refinancing process?

Valuation delays and discharge processing are the two most common bottlenecks. If the lender's valuer takes two weeks to inspect your property instead of one, or if your current lender takes three weeks to process the discharge instead of two, the entire timeline extends accordingly. These delays are more common during peak refinancing periods when lenders are managing high volumes.

In our experience, properties in Altona Meadows or near the Altona foreshore occasionally require desktop valuations instead of kerbside assessments if comparable sales are recent and clear. If the lender requests a full inspection instead, that can add another week to the process. Similarly, discharge requests submitted to your current lender during their internal processing backlog can sit for longer than the standard timeframe. You cannot control these delays, but you can prepare for them by starting the refinancing process well before your fixed rate period ends or before you need access to equity.

When should you start the refinancing process if your fixed rate is ending?

Start the process at least eight to ten weeks before your fixed rate expires. Formal approval usually takes two weeks, but if the valuation is delayed or the lender requests additional documentation, you need that buffer to avoid rolling onto a higher variable rate while the new loan is still processing. Once your fixed term ends, you lose the ability to compare your current rate against what else is available without facing break costs, so timing matters.

A homeowner with a fixed rate ending in mid-September should begin conversations in early July. If the application is submitted by late July, formal approval can arrive by mid-August, leaving four weeks for discharge and settlement before the fixed period expires. That margin allows for one or two unexpected delays without forcing you onto your lender's standard variable rate while you wait for the new loan to settle. Missing that window can mean paying a rate that is significantly higher than what you locked in during the fixed period, even if only for a few weeks.

Can you speed up the refinancing timeline?

You can control your side of the process by submitting complete documentation upfront and responding to lender requests the same day they arrive. You cannot speed up the valuation, the credit assessment, or the discharge process, but you can avoid adding delays by ensuring your application does not sit waiting for information the lender has already requested.

Prepare two years of tax returns if you are self-employed, three months of payslips if you are a PAYE employee, and three months of bank statements for all accounts before the application starts. If you are refinancing to access equity for an investment property deposit or renovation, include a clear explanation of what the funds will be used for. Lenders assess equity release differently depending on the purpose, and providing that detail upfront prevents follow-up questions that extend the assessment period. The difference between a four-week approval and a six-week approval often comes down to whether the lender had everything they needed in the first submission or had to request it in stages.

What happens during the discharge and settlement stage?

Once you accept the formal loan offer, the new lender prepares settlement instructions and requests a discharge authority from your current lender. Your current lender calculates the final payout figure, including any accrued interest and discharge fees, and provides that to the settlement agent. On settlement day, the new lender pays out your existing loan, and the title is updated to reflect the new mortgage. This stage typically takes two to three weeks, though it can extend to four if either lender experiences processing delays.

Your solicitor or conveyancer coordinates the exchange of documents between lenders and ensures the discharge is registered correctly. If you are refinancing a property in Altona near the Pier Street shops or along the Esplanade, the settlement process is identical to any other suburb, though properties with older titles occasionally require additional checks before discharge is finalised. You will receive confirmation once settlement is complete, and your first repayment to the new lender usually begins within the first month after settlement.

If you are uncertain whether refinancing suits your situation right now, a loan health check can clarify whether the potential saving justifies the time and cost involved. Call one of our team or book an appointment at a time that works for you.

Frequently Asked Questions