The 12-step refinance checklist

Refinancing a home loan typically takes 3-6 weeks end to end. Here’s the order of operations we use on every file.

Before you apply

1. Order a payout figure from your current lender. Break costs (if fixed), discharge fees, title registration - everything that needs to be paid out on settlement day. Most lenders take 3-5 business days to produce this.

2. Pull your credit file. Free from Equifax, illion and Experian (one of each per year). Check for missed payment markers, stale addresses and unexpected credit enquiries. Any surprise takes time to dispute.

3. Calculate the break-even. If you’re paying $4,000 to switch lenders (discharge + application + valuation + legals) and the new rate saves you $2,500 a year, break-even is 19 months. If you plan to move or sell within that time, don’t refinance.

During application

4. Get servicing confirmed in writing. A broker can pre-qualify you against the new lender’s serviceability calculator. If the new lender won’t lend you the same amount as the old one (rate cut cycles tighten buffers), the refinance fails before it starts.

5. Lodge the application with full documentation. Payslips, tax returns, rental statements, current loan statements (12 months), ID. Incomplete docs cost you a week each time the credit officer comes back for more.

6. Order the valuation. Some lenders use an automated valuation (free, instant). Others order a full valuation ($300-$500, 3-5 days). Your broker can pre-check AVM comfort before you commit to an application.

7. Conditional approval. Assuming servicing and valuation are clean, conditional approval lands 5-15 business days after lodgement.

Moving to unconditional

8. Satisfy conditions. Typical conditions: verify employment letter, evidence of insurance on the property, updated rental appraisal (investment).

9. Unconditional approval. Usually within 2-3 business days of the last condition cleared.

10. Loan documents signed. Mortgage documents are couriered or e-signed. Some lenders issue instructions to lawyers at this point; others do it later.

Settlement

11. Settlement booking. Your new lender coordinates with your old lender on PEXA. The settlement date is usually 5-10 business days after loan documents are signed.

12. PEXA settlement. On the day, the new lender pays out the old lender, your mortgage is transferred to the new lender’s name, and any cashback hits your account within 1-2 business days.

What usually delays a refinance

Missing payslips (add 2-3 days), valuation disputes (add 1-2 weeks), payout figure delays (add 1 week), and file transfers between broker and credit officer (add 2-3 days per transfer).

If the file is clean, 3-4 weeks is normal. 6 weeks means something went wrong. Over 8 weeks means you’re being ignored - escalate.