Your home is possibly your most significant investment, so ensuring you have the best possible loan and interest rate is vital. Many homeowners are turning to refinancing as a way to improve their financial position. This brings up the question: how long does a refinance take? The answer: it’s quicker than you think.
How long does a refinance take?
The refinance process can take anywhere from 3 days to 6 weeks depending on the lender and the complexity of your application.
How to speed up the refinance process
There are a few things you can do to speed up the process once you’ve chosen your mortgage broker or lender:
- Quickly submit your required documentation
- Ensure the accuracy of your application as well as the level of detail in your application
- Maintain a good credit score so you have a strong application
How long does settlement take when refinancing?
Settlement when refinancing is typically within four to eight weeks, depending on the lender. During this time, the final details of your refinance are completed.
Your new lender will:
- Work with the previous lender to discharge your previous loan and register for a new mortgage for your property
- Ensure your accounts are set up correctly so all funds go to the right place
- Let you know when your first loan repayment is due and the repayment amount and frequency.
Reasons to consider refinancing your home
There are several reasons to consider refinancing, including:
- Shortening your loan term to pay off the home loan faster
- Lowering monthly repayments
- Increasing your cash flow
- Consolidating your debt
The refinance process
The process of refinancing is as simple as the below:
1. Get in touch with a mortgage broker
A mortgage broker will help you figure out what loan features you may want to help you understand your goals and compare home loans.
2. Research your home loan options
Your mortgage broker will browse dozens of home loan options to find the right deals for your needs.
3. Submit your new loan application
Once you’ve found the right home loan product for you, your mortgage broker will help you submit an error-free application and complete all the paperwork to submit to the lender. With some lenders, you may be required to get a new property valuation.
4. Discharge your old loan and settle your new one:
Once you get your refinance approval, your broker will get in touch with your old lender to inform them of the change. When the settlement date is established, you’ll get a pay out figure including all of your discharge fees. From thereon, your new home loan provider will pay out your existing loan. Throughout this whole process, your mortgage broker will take the stress off your plate and handle everything.
5. Start your new home loan repayment schedule:
You can start enjoying the lower repayments or added features of your new loan.
What documents do I need when refinancing?
- List of current assets, including things like savings, shares, vehicles, high-end art, etc.
- List of existing loans and expenses
- Personal information like driver’s license, passport, birth certificate
- Proof of income such as your payslips, tax assessment notice, a letter from your employer regarding salary
- Recent home loan repayment statements
Potential reasons for your refinance delay
Occasionally, a refinancing can be slowed down for simple reasons that do not signify problems with your loan. These include,
- Errors on your application
- Omitting necessary documents when you apply
- The lender is asking for additional information
Refinancing your home loan can save you many thousands of dollars over the life of your loan and can take anywhere between 3 days and 6 weeks.
If you think refinancing is a good option for you or if you would like to learn more about the process before making a commitment, do not hesitate to get in touch with us at Quantum Finance Australia.
For over 30 years, our financial experts have worked with clients like you to help them make the most of their hard-earned money.
What factors affect how long refinancing takes?
Factors that can affect how long refinancing takes include how promptly you submit the required documentation, the complexity of the application, and the lender’s processing times.
What are the main steps involved in refinancing?
The five main steps involved in refinancing are application, approval, contract, settlement, and discharge.
Can refinancing be done quickly?
In some cases, refinancing can be done in as little as a week, but this depends on a range of factors such as how fast you’re able to upload your documents and your chosen lender’s processing times.
Can I speed up the refinancing process?
Yes, you can speed up the refinancing process by ensuring you have all the necessary documentation ready and submitting it promptly to your lender.
What documents do I need to provide to refinance?
The documents required to refinance can vary depending on the lender, but generally, you will need to provide proof of income, identification, and details of your current home loan.
Can I refinance my home loan while on maternity leave?
Yes, you can refinance your home loan while on maternity leave, but you will need to provide proof of income and meet the lender’s eligibility criteria.
Is now a good time to refinance?
If your low fixed rate has expired, it is certainly a good time to look at refinancing to avoid paying higher repayments than necessary.