What Is a Fast Refinance?

Worried about refinancing? Concerned that the process could take several weeks – and lead you to miss out on the money you could have saved on a lower rate?

These are legitimate concerns for borrowers. Some lenders may, intentionally or not, delay the process. The only way to prevent this is with a fast refinance.

Let’s look at this from your bank’s perspective; why would they rush a complex financial transaction that will only serve to reduce their incoming revenue? Lenders may even decide to delay the process in order to earn more interest from your mortgage. By slowing down a discharge by just a week or two, for dozens or even hundreds of borrowers, lenders can hold on to a significant amount of revenue. They would have lost this money if they facilitated a speedy, efficient loan discharge.

You don’t have to wait several weeks or longer for your current lender to give you a discharge agreement. Instead, you can apply for a fast refinance loan with your new lender. This way you can take advantage of the financial benefits of your new home loan as soon as possible.

How Long Does a Fast Refinance Take?

Normally, when you decide to refinance your home loan, the entire process can take anywhere from a month to three months. You’d be surprised how many days can be added when something as common as a key individual being out of the office or tied up with other work for a few days gets in the way, or if you have to submit documents multiple times. With a high volume bank, these occurrences are typical.

With a rapid refinance, instead of waiting for your old bank to provide the title for your property, your new lender will automatically deposit funds into your old loan account once you are approved and your offer has been signed and returned. Once the money is deposited, your old account automatically is closed. This means, a fast refinance can be completed within two to three weeks in some cases.

A More Simplified Home Loan Process

Another benefit of a fast refinance loan is that your new lender will take care of some of the paperwork for you, contacting your current lender and organising the new loan themselves.

Make sure you compare lenders before choosing which one to use for a rapid refi. There are some who will charge a fee for a faster approval process. This may be in addition to an application fee, as well as discharge and settlement fees. On the other hand, some banks will offer a fast refinance with no fees in order to attract new borrowers.

Getting Ready for Your Rapid Refinance

To ensure the process goes as smoothly as possible, make sure you have all your documents ready to go when you apply with your new bank. You’ll need recent bank statements, details on your current loan, as well as the standard loan application paperwork to verify your income, liabilities, and assets.

Self-employed? Don’t worry, there are plenty of lenders who will let you do a fast refinance for an existing low doc loan.

Rates have a tendency to change, which means that taking advantage of a low interest rate by refinancing can lower your monthly repayments, making it that much easier for you to manage your finances.

You may also want to change your home loan quickly in order to free up extra cash for a renovation project, an investment, or for other reasons. Do your part and have all your paperwork ready, then, research your options to find a lender with a competitive home loan product that can be expedited through the fast refinance process.

Want to see How Much You Can Save by Refinancing?

We have access to free upfront valuations from any of our lenders. Owner Occupied rates from only 3.63% and Investment rates from 3.88%. Please don't hesitate to contact me if you want more information - I can instantly tell you how much you can save.

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Disclaimer: This is general information only and should not be taken as financial advice. Please speak to a Shore financial planning professional before making a decision on your home loan.