Simple hacks to settle your refinance faster

What Actually Happens After Your Refinance Gets Approved

Once your refinance application is approved, settlement is the final step where your new lender pays out your old one and the loan switches over. This usually takes between two and six weeks, depending on how quickly documents move between lenders, your solicitor, and the land titles office. Your job during this time is to keep things moving by responding quickly and making sure nothing changes with your employment or credit file.

Consider a property owner in Cooma who refinanced a $380,000 loan to access a lower interest rate and consolidate a car loan. The application was approved in eight days, but settlement took five weeks because the discharge authority from the old lender sat on someone's desk for eleven days before being lodged. The delay cost nothing directly, but it meant an extra fortnight of interest at the old rate, roughly $290 that could have been avoided if the discharge had been chased up earlier.

How the Discharge Authority Works

Your old lender needs to release the mortgage over your property before the new lender can register theirs. They do this by issuing a discharge authority, which is lodged with NSW Land Registry Services. Once lodged, it can take anywhere from a few days to two weeks to process, depending on whether it's done electronically or by paper. Most lenders now lodge electronically, which is faster, but not all of them do.

If your old lender is slow to issue the discharge, your settlement date can blow out. This is where a broker can help by following up directly with the old lender's settlements team, rather than leaving it to your solicitor who might be juggling twenty other files. In our experience, the discharge is the single biggest cause of settlement delays in refinancing, and it's almost always preventable with a phone call at the right time.

What Your Solicitor Does During Settlement

Your solicitor or conveyancer handles the paperwork between your old lender, your new lender, and the land titles office. They request the payout figure from your old lender, prepare the discharge documents, and arrange for the new lender's mortgage to be registered once the old one is removed. They also handle the transfer of funds on settlement day, making sure your old loan is paid out in full and any remaining funds are sent to you if you're releasing equity.

You'll need to sign a few documents during this period, usually the mortgage documents from your new lender and an authority for your solicitor to act on your behalf. Some lenders now allow electronic signing, others still require wet signatures. If you're asked to sign something, do it the same day if you can. Every day a document sits unsigned is a day added to your settlement timeline.

When You Need a Valuation and When You Don't

Most refinances require a property valuation so the new lender can confirm your loan-to-value ratio. Some lenders will accept an automated valuation if your loan amount is low relative to the property value, which can save a week or more. If a physical valuation is required, it's usually ordered during the application stage, but occasionally a lender will ask for a second valuation if the first one comes in lower than expected or if the property has unusual features.

In Cooma, where rural residential blocks and lifestyle properties are common, valuers sometimes take longer to find comparable sales, especially if your property has acreage or improvements like sheds or water infrastructure. If your valuation is delayed, ask your broker to check whether the lender will accept a desktop valuation or whether they need a full inspection. Sometimes a phone call from the broker to the lender's valuation team can speed things up.

What Happens If Your Fixed Rate Ends Before Settlement

If you're coming off a fixed rate and your refinance hasn't settled yet, you'll usually roll onto your current lender's variable rate for the period between expiry and settlement. This can be frustrating if the variable rate is higher than the new rate you've locked in, but there's not much you can do about it except push settlement along as quickly as possible.

One way to reduce this gap is to start your refinance application about eight weeks before your fixed rate ends, which gives enough time for approval, valuation, and settlement without rolling onto the variable rate. If you've already rolled over, make settlement your priority and chase up any outstanding documents or signatures the same day they're requested.

Costs You'll Pay at Settlement

Refinancing involves a few costs that are either paid upfront or deducted from your loan at settlement. These usually include a discharge fee from your old lender, which is typically between $150 and $400, legal fees for your solicitor, which can range from $800 to $1,500 depending on complexity, and registration fees for the new mortgage, which are set by the state government and currently sit around $150 in NSW. Some lenders also charge an application fee or a valuation fee, though many now waive these to attract refinance customers.

If you're releasing equity to fund renovations or an investment, the additional loan amount will usually cover these costs so you're not paying anything out of pocket at settlement. If you're refinancing purely to access a lower rate without increasing your loan amount, you'll need to cover these costs separately, either by paying your solicitor directly or having them deducted from any redraw or offset balance you have with your old lender.

What You Can't Do Between Approval and Settlement

Once your refinance is approved, don't change jobs, apply for new credit, or make large cash withdrawals until after settlement. Lenders sometimes run a final credit check in the days before settlement, and if something has changed, they can withdraw the approval. This doesn't happen often, but it does happen, and it's almost always avoidable.

We regularly see this with clients who assume approval means the deal is done and then go and buy a car or take out a personal loan for a holiday. If the lender sees new debt on your credit file, they'll reassess your borrowing capacity, and if you no longer meet their serviceability requirements, they can pull the loan. Wait until settlement is finished and the funds have moved before making any financial changes.

How Long the Whole Process Takes From Start to Finish

From the day you submit your refinance application to the day settlement completes, you're usually looking at four to eight weeks. The application itself might be assessed in a week or two, but the settlement process adds another two to six weeks depending on how quickly your old lender issues the discharge and how busy the land titles office is. If you're refinancing because your fixed rate period is ending, start the process early so you're not stuck on a high variable rate while you wait for settlement.

If you need the refinance to settle by a specific date, say to pay out another debt or fund a purchase, let your broker know upfront so they can choose a lender with faster settlement times and follow up on any delays as they happen. Some lenders are consistently quicker than others, and that can make a real difference if you're working to a deadline.

If you're thinking about refinancing or your fixed rate is ending soon, call one of our team or book an appointment at a time that works for you. We'll walk you through the settlement process and keep things moving so you're not stuck waiting longer than you need to.

Frequently Asked Questions