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How the refinance process actually works
Refinancing
Stage 5 / 6 · The process

How the refinance process actually works

Discharge form, valuation, settlement, dual-loan period. Six weeks if you start clean, twelve if you don’t.

11 min readBy Sarah ChenStage 5 of 6
A refinance settlement is a discharge from one lender and a new loan from another, run on the same day. The timing between the two is what makes it slow.

The eight steps, in order

  1. New lender pre-approves your application.
  2. New lender orders a valuation.
  3. New lender issues formal approval.
  4. You sign mortgage documents.
  5. Existing lender receives the discharge authority.
  6. Settlement booking confirmed (PEXA).
  7. Settlement: new lender pays out old lender.
  8. Direct debits switch over to new account.

WARNING: This comparison rate is true only for the example given and may not include all fees and charges. Different terms, fees, or other loan amounts might result in a different comparison rate. Comparison rates are based on a secured loan of $30,000 over 5 years for vehicle finance and $50,000 over 5 years for equipment finance, as required under the National Credit Code.