Most refinance applications settle within four to six weeks from lodgement.
That timeline assumes your documentation is in order, the lender's valuation comes back at or above your required amount, and no unexpected issues surface during assessment. In our experience working with self-employed borrowers and professionals around Double Bay, the difference between a smooth four-week refinance and one that stretches past two months usually comes down to preparation and lender choice.
How the refinance process breaks down
The application stage typically takes one to two weeks. You'll provide income documentation, property details, and current loan statements. For self-employed borrowers, this often includes two years of tax returns, business financials, and recent BAS statements. Once lodged, the lender assesses your application and orders a valuation, which adds another five to ten business days depending on the valuer's availability and your property type.
After the valuation and credit assessment are complete, formal approval is issued. This is usually another five to seven days. Settlement is then scheduled, typically two to three weeks out from formal approval, though this can be shorter if you're refinancing with your existing lender and no discharge is required.
What slows things down
Incomplete documentation is the most common delay. Missing pages from a tax return, unsigned financials, or outdated payslips can add a week or more while you track down what's needed. Lenders won't progress an application until everything is accounted for, and follow-up requests often sit in queues for days before being reviewed again.
Valuation issues also extend timelines. If the valuer's assessment comes in below the amount you need to refinance your home loan, you'll either need to adjust your loan amount, provide additional funds, or look at a different lender. Each of those options resets part of the clock.
Consider a borrower refinancing an apartment in the Edgecliff precinct. The valuation came back $50,000 lower than expected due to recent strata disputes affecting comparable sales. The borrower had to either accept a higher loan-to-value ratio, which changed the interest rate on offer, or wait for a second valuation with a different lender. Both options added three weeks to the original timeline.
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Coming off a fixed rate changes the urgency
If your fixed rate period is ending, you'll want to start the refinance process at least eight weeks before expiry. Most lenders won't let you lock in a new fixed rate more than 90 days out, but starting early gives you time to compare offers, gather documentation, and settle before you revert to a higher variable rate.
Waiting until the last minute often means you'll spend a month or two on your lender's standard variable rate while the new loan settles. On a $900,000 loan, the difference between a discounted variable rate at 6.1% and a revert rate at 7.2% is around $825 per month. That's real money leaving your offset account while you wait.
Self-employed timelines run longer
Self-employed applications generally take an additional one to two weeks compared to PAYG borrowers. Lenders require more documentation, and their credit teams often send follow-up questions about income calculations, business structure, or irregular deposits. If your most recent financial year shows lower income due to deductions or business reinvestment, expect further queries that stretch the assessment period.
Working with a broker who understands how lenders assess self-employed income can shorten this. We regularly see situations where choosing a lender that uses different income calculation methods, or one that has a dedicated self-employed assessment team, can cut a week off the process simply by reducing the back-and-forth.
You can influence the timeline
Have your documentation ready before you apply. For self-employed borrowers, that means tax returns, notices of assessment, business financials, and recent transaction statements showing regular income. For PAYG professionals, two recent payslips, your employment contract if you've started a new role in the past 12 months, and current loan statements are the baseline.
Respond to lender requests the same day they're sent. Assessment teams work through applications in order, and a delayed response puts you back in the queue. If a lender asks for clarification on a deposit or an explanation for a credit enquiry, send it through immediately rather than waiting until the end of the week.
Choose a lender that suits your situation. Some lenders assess self-employed applications faster because they have streamlined processes for that borrower type. Others are quicker for straightforward PAYG refinances but slower when complexity increases. A loan health check before you apply can identify which lenders are likely to assess your situation efficiently.
Settlement timing depends on your current lender
Once formal approval is issued, settlement usually takes two to three weeks. If you're refinancing to a different lender, your new lender will coordinate with your current lender to discharge the existing mortgage and register the new one. This involves legal teams, land registry lodgements, and payout calculations that need to align on a specific settlement date.
If you're staying with the same lender but switching loan products, settlement can happen within a week because no discharge is required. Internal refinances are faster, though they don't always deliver the same rate improvement as switching to a new lender.
When to push for a faster timeline
If you're accessing equity to secure a property purchase, speed matters. In that scenario, you'll want to work backwards from your purchase settlement date and allow at least six weeks for the refinance to complete. Anything tighter requires a lender that can commit to express processing, which not all lenders offer.
If you're refinancing purely to access a lower interest rate, there's less urgency, but every month you delay costs you in higher repayments. On a $1.2 million loan, a 0.5% rate difference is $500 per month. Waiting an extra month to get organised is another $500 that could have stayed in your offset account.
Call one of our team or book an appointment at a time that works for you. We'll walk through your current loan, your documentation, and match you with a lender that fits your timeline and situation.
Frequently Asked Questions
How long does a typical refinance take from start to finish?
Most refinance applications settle within four to six weeks from lodgement. This assumes your documentation is complete, the valuation comes back at the required amount, and no unexpected issues arise during assessment.
What causes delays in the refinance process?
Incomplete documentation is the most common delay, often adding a week or more. Valuation issues, where the property is assessed lower than needed, can also extend the timeline significantly. Self-employed applications typically take an additional one to two weeks due to more complex income assessments.
When should I start refinancing if my fixed rate is ending?
Start the refinance process at least eight weeks before your fixed rate expires. This gives you time to compare offers, gather documentation, and settle before reverting to a higher variable rate.
Can I speed up the refinance timeline?
Yes, by having all documentation ready before applying and responding to lender requests immediately. Choosing a lender suited to your situation, particularly for self-employed borrowers, can also reduce assessment time.
How long does settlement take after formal approval?
Settlement typically takes two to three weeks after formal approval when switching lenders. If you're staying with the same lender but changing products, settlement can happen within a week as no discharge is required.
