The past year has seen a big increase in the number of Australian homeowners who are looking to refinance. As the economy continues to take repeated hits and the pandemic drags on longer than anyone anticipated, refinancing has now taken on an added sense of urgency, leaving many asking the question: “How long does refinancing take?”
Big Savings Now Available to Refinancing Homeowners
In an effort to support a pandemic-affected national economy, the Reserve Bank of Australia (RBA) slashed the official cash rate to a record-breaking low of just 0.10%, and most lenders responded by dropping interest rates. In fact, many lenders started offering fixed-term interest rates of less than 2%. At the same time, Brisbane property prices experienced an unexpected increase. And as a result of all this, many Australians now have more equity in their property, making them eligible for some fantastic refinance home loan deals.
But as we’ve already mentioned, countless Australian families are also experiencing increased economic pressure due to the ongoing COVID situation. The sooner they can benefit from a more competitive home loan, the better. So, how long does refinancing take? And is there anything a homeowner can do to minimise delays?
How Long Does It Usually Take to Refinance a Home Loan?
The process of refinancing a home loan can take as little as 1 week or as long as 4-6 weeks. Why is there such a discrepancy in the amount of time it takes? In large part, it comes down to the individual lenders – each mortgage lender will have their own process for handling a home loan refinance. As a result, some lenders will spend more time going over certain details of a refinance application, while others will be happy to grant approval based on a more cursory overview.
There are some important factors that can impact how long it takes a lender to finalise the refinance process. These include:
- How long it takes for you to submit the necessary documents.
- The amount of supporting documentation you provide with your application.
- The details of your application – for example, if you have minimal debt, a solid income from a long-term employer and a high credit score, then your application will be easier (and quicker) to process.
What Are the Most Common Reasons Why a Refinance Application Is Delayed?
There’s not much a refinancing homeowner can do to speed up a lender’s application assessment process. However, some things can cause unnecessary delays in refinancing. The most common issues are:
- Not providing enough supporting documentation (such as bank statements).
- Making mistakes on the application or only submitting a partially completed application.
- Misunderstandings between the lender and the homeowner.
Avoid Unnecessary Delays and Refinance Your Home Loan as Quickly as Possible!
The easiest way to avoid unnecessary delays when refinancing is to talk to an experienced finance broker before you get started. A broker can help you to quickly and accurately identify which loan product will offer the best solution. They can complete all the paperwork on your behalf (so, no need to worry about mistakes) and let you know exactly what supporting documentation the lender will require. A mortgage broker will also be able to present your application in the best possible light, emphasising all the reasons why your application should be approved. They can even contact the lender directly to explain any irregularities in your application and to ensure that there are no misunderstandings during the application assessment.
To find out more about how a broker can help you to refinance your home loan, contact the experienced team of mortgage brokers at Coronis Finance.