Refinancing a home loan in Australia follows a clear sequence. Most borrowers can expect the process to take anywhere from a few weeks to around 2 months from first enquiry through to settlement, depending on the lender, your paperwork and the discharge timing at your current bank. When you understand what happens at each step, you can plan ahead, avoid delays and stay in control of the outcome.
This guide walks through the refinance timeline stage by stage, from valuation to discharge to settlement, with a simple checklist you can follow. It also highlights how specialist products, such as Empower Money’s Power Up Elite 105% LVR solution, fit into the picture when you are borrowing at higher leverage.
Overview Of The Home Refinance Timeline
Key Stages From Application To Settlement
While every lender has its own systems, most home refinance applications move through similar phases. Seeing the structure up front helps you know what is coming next.
- Enquiry and preliminary assessment, where you share basic details and a lender or broker confirms whether a refinance looks feasible.
- Full application, including your identification, income documents, existing loan statements and expense details.
- Property valuation ordered by the new lender to confirm your loan to value ratio and final approval position.
- Discharge authority lodged with your existing lender so they can calculate your payout figure and prepare for settlement.
- Settlement, where the new loan pays out the old loan, the mortgage on your title is updated and your new repayments begin.
Who Is Involved In A Refinance Old Lender New Lender And Conveyancer
Several parties work together in the background once your refinance is underway:
- you as the borrower
- your existing lender
- your new lender
- any mortgage broker you use
- and in some cases a solicitor or conveyancer plus the relevant state land titles office or electronic settlement platform.
Your new lender will usually coordinate most of the contact with your old lender and the settlement platform once you have supplied your documents and signed the new loan contract.
Typical Timeframes For Valuation Discharge And Settlement In Australia
Timeframes vary, but as a working guide:
The new lender may issue conditional approval within a few business days once they have your application and supporting documents. Valuation is normally ordered at this point and can take from several days to around 1 week, depending on property access and location.
Discharge processing at the existing lender typically takes around 10 to 21 business days once they receive a correctly completed discharge authority. If information is missing or dates change, the discharge can take longer.
Once valuation, approval and discharge are all in place, refinance settlement itself is usually booked for a specific date and completed electronically through platforms such as PEXA. On settlement day the new loan pays out the old one and your new lender becomes the mortgagee on title.
Valuation Stage What To Expect And How To Prepare
When Your New Lender Orders A Property Valuation
After you submit a full refinance application, your new lender will order a valuation of the property that secures the current loan. The purpose is to confirm the market value, calculate your exact loan to value ratio and check that the property meets the lender’s criteria.
In most cases a valuation is arranged within a few days of conditional approval. For standard properties in metro locations the lender may use a desktop or kerbside assessment. For higher risk or higher leverage lending, such as 95% to 105% solutions, a full internal valuation is more common.
Products like Empower Money’s Power Up Elite, which can fund up to 105% of the purchase price for eligible borrowers, rely heavily on accurate valuations and tight property criteria. When more than 100% of the price is being advanced, lenders will pay particular attention to market value, location and build quality to manage risk.
Documents Access And Presentation For The Valuer
The valuer will either inspect the property in person or review data and recent sales. You may be asked to provide access at an agreed time if an internal inspection is required.
There’s no need to stage the property as though you’re selling it, but it does help to present it in a clean and orderly condition. Having recent plans, approvals & renovation details available allows the valuer to factor improvements into their report.
The completion and accuracy of the information, the less likely that the valuation coming in will be low.
How The Valuation Result Impacts Your LVR Rate And Approval
Once the valuation report is back, the lender updates your loan to value ratio. If your LVR is at or below 80%, you can normally avoid lenders' mortgage insurance. A stronger equity position can also open up sharper interest rates and more product options.
If the valuation comes in below your expectations, the LVR increases. That can limit how much you can borrow, trigger LMI, or in some cases force you to contribute more cash or reconsider the refinance. For high LVR structures, including leveraged solutions such as 105% lending, an unexpectedly low valuation can mean the application must be restructured or delayed.
Discharge Process With Your Existing Lender
Requesting A Payout Figure And Completing A Discharge Authority
Once you have conditional or formal approval from the new lender, the next step is to initiate the discharge with your existing lender. This is done by completing a discharge authority form that tells your current bank you intend to close or refinance the loan.
The form will ask for details such as the loan accounts being discharged, the reason for discharge, your contact details and the proposed settlement date. Your new lender or broker will usually help you complete and submit this form.
After receiving the discharge authority, your existing lender will calculate a payout figure that includes the outstanding balance, any accrued interest and applicable fees up to the proposed settlement date.
Discharge Fees Timing And Common Delays
Most lenders charge a discharge fee to close a home loan. You may also see government registration or release fees for removing the mortgage from the property title. These amounts are generally added into the final payout figure.
Processing time depends on the lender, but many request at least 10 business days and some allow up to 21 business days. Common causes of delay include missing signatures, incorrect loan details, or changes to the requested settlement date after the discharge has already been booked.
Submitting a complete discharge authority well ahead of your target settlement date is one of the most effective ways to keep the refinance timeline on track.
How Your Old And New Lenders Coordinate The Switch
Once your discharge request is live and your new loan is approved, the two lenders liaise directly. Your new lender will confirm the payout amount shortly before settlement and ensure that funds are available to clear the old loan.
On settlement day the new lender sends funds to the old lender, the old loan is paid out and closed, and the mortgage on the property title is updated to show the new lender as mortgagee. This is usually managed through an electronic settlement platform, without you needing to attend in person.
Refinance Settlement Day And Post Settlement Checklist
Final Approval Loan Documents And Settlement Booking
Before settlement, your new lender will issue formal approval along with loan and mortgage documents. You will need to review and sign these documents, return them in the format required and complete any final verification steps.
Once everything is in order, the new lender books a settlement date with your existing lender and any settlement agent. You will be told the date and, in some cases, the expected time window, although the process itself occurs in the background.
What Actually Happens On Refinance Settlement Day
On the day of settlement, the new lender draws down the approved loan and sends the required funds to your existing lender to pay out the current mortgage and associated fees. Title and mortgage dealings are lodged with the relevant land titles office, usually electronically.
From your perspective, you may receive notifications that settlement has been completed and the old loan account has been closed. Your new lender will then confirm the date and amount of your first repayment.
Post Settlement Checks Direct Debits Statements And Title Records
Once settlement has gone through, it is worth spending a small amount of time checking that everything is in order.
- Confirm that your old loan account shows as closed and that any linked offset or redraw accounts have been handled the way you expected.
- Update any direct debits that were coming from the old loan or linked accounts so they now draw from your new everyday or offset account.
- Check your new loan statements and internet banking to confirm the interest rate, repayment amount, frequency and any package or account fees are exactly what you agreed to.
- Ask your new lender or conveyancer to confirm when the updated mortgage details will appear on the property title and keep any settlement and discharge documents on file for your records.
Completing these checks in the first week after settlement reduces the risk of missed payments or confusion about how your new structure operates.
Frequently Asked Questions About Refinance Valuations And Settlement
How long does a typical home refinance take from application to settlement?
Most standard refinances are completed within a window of roughly 4 to 8 weeks, although some fast refinance models can move more quickly if your paperwork is complete and the discharge is processed without delays.
What if the valuation comes in lower than I expected?
A lower valuation increases your loan to value ratio, which can reduce how much you can borrow, trigger lenders' mortgage insurance or limit product options. In some cases you may be able to challenge factual errors in the report or supply additional recent sales data, but if the valuer holds their position you may need to adjust the loan amount or wait until your equity improves.
How much notice should I give my existing lender to discharge the loan?
Many lenders ask for at least 10 business days to process a discharge authority and some recommend up to 21 business days. Lodging the form as soon as you have conditional or formal approval from the new lender helps avoid last minute settlement delays.
Do I need a solicitor or conveyancer for a simple refinance?
For most straightforward refinances your new lender and the settlement platform will handle the title and mortgage work, so you may not need your own solicitor or conveyancer. If your situation is more complex, or if you want independent advice on the documents, engaging a professional can still be worthwhile.
What should I double check after refinance settlement?
You should check that the old loan is closed, any linked accounts have been dealt with correctly, your new interest rate and repayment details match the loan contract, your direct debits are updated and you have copies of key settlement and discharge documents for your records.
Sources
https://moneysmart.gov.au/home-loans/switching-home-loans
https://www.anz.com.au/personal/home-loans/settlements-discharges/
https://www.homeloanexperts.com.au/refinance-home-loan/refinance-process/
https://www.finspo.com.au/learn/time-to-refinance-home-loan/
https://www.yourmortgage.com.au/compare-home-loans/what-you-should-know-about-discharging-your-mortgage
https://www.empowermoney.com.au/power-up-elite
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