Home loan refinancing process and timeline

Five simple refinancing steps that can save you now and in the future 

man on couch thinking about refinancing

The process of switching to a new home loan otherwise known as refinancing, may sound like a hassle, but it can be surprisingly easy, especially with an Aussie Broker by your side. 

It’s important to remember that just like when you received your first home loan, when it comes to refinancing, there is no one-size-fits-all solution. It’s a matter of finding the home loan that meets your particular needs now and in the future - both personally and financially. 

Importantly, understanding the refinancing process and how long you can expect it to take can make the whole journey much easier.

The refinancing process can be summarised in five simple steps: 

  1. Your Aussie Broker will take the time to get a clear picture of your needs and your current situation. This includes some information on your income, assets, liabilities, and expenses. With this detail, they’ll provide options and recommendations that match your needs and budget.
  2. Once you’ve chosen your preferred option, the application process works in much the same way as when you applied for your existing loan. In some cases, your home may need to be re-valued. This step will be confirmed by your broker if it’s required. They will then prepare all the paperwork, and once signed, submit it to the lender. 

  3. Once you’re approved for your new loan, your broker and new lender can let your current lender know that you’d like to pay out — or discharge— your existing loan.
  4. When your current lender knows the exact date of settlement, you’ll be given a final pay out figure. Your broker will keep you informed throughout the process but will manage it all on your behalf.
  5. From there, your new lender will pay out your old loan. You can then expect to receive new documentation for your new loan and you will begin making repayments on your new loan.

End-to-end, the entire refinancing process can take anywhere from a couple of days to just over a month, depending on the complexity of your loan.  In most cases, you’ll have your new loan within two months of beginning the process. 

Valuing your property when refinancing  

When you’re looking to refinance, your new lender may want to value your home. Valuing the property will determine the amount of money they’re willing to lend you. Some lenders may charge you a fee for this valuation. Your broker will factor this into the numbers to be sure that refinancing is right for you.  

If refinancing is on your ‘to do’ list, or it’s been over 12 months since you got your home loan, book a free appointment with an Aussie Broker to review your loan. 

Refinancing isn’t as difficult as it may seem, especially when you don’t have to do it alone. An Aussie Broker can manage the process for you and could end up saving you thousands now or in the long run. 

Speak to an Aussie Broker 

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