Short answer: a refinance typically takes 2 to 6 weeks from application to settlement, and involves five steps: apply with the new lender, request a discharge authority from the old one, get a valuation, receive formal approval, then settle. Here's what each step actually involves.
The process feels bigger than it is because it involves two separate institutions working in parallel: your new lender processing an application, and your old lender processing an exit. Once you know what each side is doing and roughly when, the whole thing is far less mysterious.
Before you apply: what to gather
Having documents ready before you start cuts real time off the process, since most delays happen when a lender is waiting on paperwork rather than processing your file. You'll typically need your current loan statement with the payout figure, recent payslips or two years of tax returns if self-employed, bank statements from the last three to six months, identification documents, and details of your property including its estimated current value.
It's also worth having your current lender's contact details on hand for the discharge authority step, since you'll need to reach out to them directly, separate from your new loan application.
The five-step switching process
Step 1: Apply with your new lender
This starts like any home loan application: you submit your financial details, the new lender assesses your borrowing capacity, and you receive conditional approval if everything checks out. Many brokers can pre-check your eligibility against multiple lenders before you formally apply, which avoids unnecessary hard credit enquiries.
Step 2: Request a discharge authority from your current lender
A discharge authority is the form that lets your current lender know you intend to pay out and close your loan. It needs to be completed and signed by all borrowers, and submitted with accurate details, since incomplete forms are a common cause of delay. Submit this at the same time as your new loan application, ideally at least four weeks before your intended settlement date, since processing commonly takes 10 to 21 business days.
This step is easy to leave too late because it happens with a different institution to the one processing your new loan. Put a reminder in as soon as you submit your new application.
Step 3: Property valuation
Your new lender arranges a valuation of your property as part of assessing the loan, so there's no need to organise one separately. This confirms your loan-to-value ratio, which affects both your rate and whether Lenders Mortgage Insurance applies, covered in more detail in our guide to refinancing costs.
Step 4: Formal approval
Once your valuation and documents are confirmed, your new lender issues formal (unconditional) approval and prepares loan documents for you to sign. This is also when a settlement date gets proposed, coordinated between your new lender, your old lender, and, if applicable, your conveyancer or solicitor.
Step 5: Settlement day
On settlement day, your new lender notifies your existing lender and pays out your old loan balance in full. Your new mortgage is registered on the property title, your old one is discharged, and your first repayment to the new lender is scheduled. Your outgoing lender then sends a final discharge statement confirming the loan is paid out in full.
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How long it actually takes
| Stage | Typical timeframe |
|---|---|
| New lender application to conditional approval | 3 to 10 business days |
| Discharge authority processing (old lender) | 10 to 21 business days |
| Valuation and formal approval | 5 to 10 business days |
| Settlement date confirmation | 1 to 3 days' notice |
| Total, application to settlement | 2 to 6 weeks |
Most major banks process standard variable discharges within 10 to 15 business days, at the faster end of that range. The discharge authority step is usually what sets the pace for the whole timeline, since it runs on a separate track to your new application.
The double-repayment question
A common worry is ending up paying both loans at once during the switch. In a standard refinance, that doesn't happen: your new lender pays out the full balance of your old loan on settlement day, so there's no gap where you owe money on both. The real risk isn't double repayments, it's a delayed settlement if your discharge authority wasn't submitted early enough, which can push your settlement date back by a few weeks rather than create an overlap in repayments.
Common mistakes that cause delays
This is the single biggest cause of delayed settlement. Submit it alongside your new application, not after approval.
All borrowers need to sign the discharge authority. Missing a signature sends it back to the start of the queue.
Breaking a fixed term partway through adds a break cost and can affect timing. Confirm your loan type before applying anywhere.
Lenders typically want documents from within the last 60 to 90 days. Gather these right before applying, not weeks in advance.
Full switching checklist
- Current loan statement with payout figure
- Recent payslips or two years of tax returns if self-employed
- Bank statements from the last three to six months
- Identification documents for all borrowers
- Estimated current property value
- Discharge authority form, submitted early and signed by everyone on the loan
Sources
- Yard, Understand the Process of Discharging Your Mortgage.
- Unloan, Discharging Your Mortgage in Australia: What to Know.
- Mortgage World Australia, Discharge of Mortgage: Australian Guide, Fees & Timeline.
- MoneyMart, How to Switch Home Loan Provider.