How long does it take to Refinance?

Article published 06 July 2021

The process to refinance works in a similar way as applying for your original loan and therefore refinancing on average can generally take 4-8 weeks in total. Of course, the process can vary based on your individual situation and some lenders may even be able to offer a “FASTRefi^®”.¹

If eligible, a fast refi can speed up the time it takes to refinance your home loan. A fast refi works by using title insurance² to allow lenders to payout your loan account without waiting for your existing lender to process the discharge. While this reduces the time it takes to refinance your loan, your lender is still obligated to make reasonable inquiries about your requirements and reasons for refinancing your existing home loan as well as determine and verify your financial situation in the process. It is of course important to understand that not all lenders are able to offer a fast refi and you may not be eligible. 

To find out more about fast refinance options, it is best to speak with your local Mortgage Choice broker, who can go through your situation and help you get the right deal. 

The Refinancing Process

The first step involved in the refinancing process is to review your current mortgage and financial situation and understand if refinancing is right for you. There are many reasons why someone may want to refinance and to determine whether it is the right decision. At Mortgage Choice, your broker can help you with a Home Loan Health Check to review your situation and ensure you’re receiving the best deal. 

Once you’ve decided that refinancing is the right choice for you, the next step of the process is to find the right home loan for you. You can search through thousands of different home loans across our lender panel here or speak to a Mortgage Choice Broker who can go through your situation, compare the loans available and find the loan that’s right for you.  

Now that you’ve decided on the home loan and lender that you would like to refinance to, the refinance application will work similarly to your original loan application. Your broker can do all the legwork for you to assist your refinance application. During the process your property may need to be revalued by the new lender. 

Finally, once you’ve received approval for your new mortgage, you will get your settlement date where your new lender will pay off your existing loan and you will receive your new home loan product. 

How to know if you should refinance?

There are many different reasons someone may want to refinance their home loan.These reasons can include securing a better interest rate, receiving additional or better loan features, consolidating other debt or even accessing home equity. 

However, before deciding whether you should refinance or not, you should consider the potential costs involved that can include exit costs from leaving your existing lender as well as borrowing costs charged by your new lender.

Of course, every situation is different when it comes to the benefits and costs of refinancing, therefore it helps to review your situation and get expert advice. You can use our online tool below to review your home loan and understand whether refinancing is right for you!