Refinancing sounds like a lot of paperwork, and it does involve some. But most of it is handled by your broker and the new lender. Here's what actually happens, step by step, and how long each part usually takes.
Step 1: Review your current loan (day 1)
Start with your latest loan statement. You'll need:
- Current balance and interest rate
- Whether it's fixed or variable, and any fixed expiry date
- Loan term remaining
- Any offset or redraw balances
- Your lender's discharge fee
If your loan is fixed, ask your lender for an estimate of break costs.
Step 2: Work out your goals
Refinancing isn't just about rate. Decide what matters most:
- Lower repayments
- An offset account
- Releasing equity for a renovation or investment
- Consolidating other debts
- Splitting between fixed and variable
Your goals determine which lenders and products suit.
Step 3: Compare lenders (days 1 to 3)
A broker compares rates, fees and policies across a panel of lenders. Key things to compare:
- Interest rate and comparison rate
- Annual and upfront fees
- Offset and redraw features
- Cashback offers (and their conditions)
- LVR bands and how they affect the rate
Before you apply, it's also worth asking your current lender whether they'll match the better offer.
Step 4: Gather documents (days 2 to 5)
For a typical PAYG borrower:
- Photo ID
- Two recent payslips
- Most recent home loan statements (usually the last 6 months)
- Statements for any other debts and credit cards
- Bank statements showing living expenses
- Council rates notice
Self-employed borrowers usually need two years of tax returns and notices of assessment, or BAS statements for low doc loans.
Step 5: Application and valuation (days 5 to 15)
Your broker lodges the application. The new lender:
- Checks your credit file
- Assesses your income and expenses against a buffered rate
- Orders a valuation of your property
Valuations are usually done from a desktop or with a short inspection. If the valuation is lower than expected, we may be able to ask for a review or try another lender.
Step 6: Approval and loan documents (days 10 to 20)
Once approved, the lender issues loan documents. Read them, sign them and return them quickly. Delays here are the most common reason refinances drag on.
You'll also sign a discharge authority for your current lender. This tells them you're leaving and allows them to prepare for settlement.
Step 7: Discharge and settlement (days 20 to 35)
Your current lender processes the discharge. This can take 10 business days or more, depending on the lender. Some are faster than others.
At settlement, the new lender pays out the old loan electronically and registers the new mortgage. You don't need to attend.
Step 8: After settlement
- Set up your new repayments and any direct debits
- Move savings into the new offset account
- Cancel old direct debits to the previous loan
- Check your first statement to make sure everything is correct
- Claim any cashback, if offered
How long does it take overall?
Typically 3 to 6 weeks from application to settlement. The biggest delays tend to be:
- Missing documents
- Valuations that need reviewing
- Slow discharges from the outgoing lender
- Unsigned loan documents
Costs to expect
Common costs include the outgoing lender's discharge fee, government mortgage registration and discharge fees, and any fixed rate break costs. Many lenders charge no application fee. Read our full breakdown of refinancing costs.
Frequently asked questions
Do I need to get my property valued myself?
No. The new lender orders and pays for the valuation in most cases.
Will my repayments change straight away?
Your first repayment to the new lender is usually due about a month after settlement.
Can I refinance while I'm on parental leave?
Sometimes, depending on the lender and your return-to-work date. See our post on refinancing with a change in income.
Ready to refinance or just want to see what you could save? Call Finfident on 0424 545 654. We do the comparison, the paperwork and the chasing.
This article is general information only and doesn't take into account your objectives, financial situation or needs. Figures, rates and scheme rules are current as at October 2026 and can change. Finfident Finance Brokers (ABN 94 679 280 801) is Credit Representative 569374 of Outsource Financial Pty Ltd (ACN 131 090 705), Australian Credit Licence 384324.