What the Refinancing Process Actually Involves
Refinancing your home loan means replacing your existing mortgage with a new one, usually with a different lender. The process takes four to eight weeks from application to settlement, depending on how quickly you can pull together documentation and how backed up the lender's valuation team is.
For FIFO civil engineers, the main friction point isn't the process itself but the documentation requirements around your income. You'll need to prove your roster pattern is stable and your employer relationship is ongoing, which means recent payslips, employment contracts, and often a letter from your employer confirming your FIFO arrangement. Most lenders want at least three months of payslips, but some will ask for six if your roster includes variable overtime or project-based allowances.
Consider a civil engineer refinancing from a fixed rate that expired six months ago. They stayed on the default variable rate at 6.8% with a loan amount of around $450,000. A new lender offered 6.1% on a three-year fixed term. The monthly saving was roughly $260, which over three years adds up to more than $9,000. The refinance took five weeks from start to finish, with most of that time spent waiting for the valuation and formal approval.
When Refinancing Makes Sense for Your Situation
You should refinance when the rate difference covers the cost of switching and you plan to stay in the property long enough to recover any upfront fees. Most refinances cost between $600 and $1,200 in application fees, valuation costs, and discharge fees from your current lender.
If your fixed rate period is ending, refinancing often delivers immediate value because reverting to a standard variable rate can push your rate well above what new customers pay. Lenders don't reward loyalty. The best rates go to people who apply as new customers, which is exactly what you become when you refinance.
In our experience, FIFO workers also refinance to consolidate debt or access equity for a deposit on an investment property. That requires a different application process because you're not just switching lenders, you're also increasing your loan amount. The lender will reassess your borrowing capacity based on your current income and expenses, so timing matters. If you've recently taken on new credit or your roster has changed, wait until your financial position stabilises before applying.
What You'll Need to Provide During the Application
The refinance application mirrors a standard home loan application. You'll submit proof of income, proof of identity, and details about your current loan and property. The difference is that your existing lender already has a mortgage over the property, so the new lender needs to confirm the payout figure and arrange settlement timing.
FIFO civil engineers should gather at least three months of payslips showing base salary, FIFO allowances, and any overtime or shift loadings. If your contract includes a daily living allowance or travel allowance, include documentation that explains how those payments work. Some lenders treat certain allowances as ongoing income, others don't. Your broker will know which lenders accept your specific pay structure without discounting it.
You'll also need a current employment contract and, in most cases, a letter from your employer. That letter should confirm your start date, your roster pattern, and that your role is ongoing. If you're employed through a labour hire company, make sure the letter clarifies the arrangement and the expected duration of your assignment.
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How the Valuation and Approval Process Works
Once you submit your application, the lender orders a valuation. Most refinances use a desktop valuation, which means the valuer doesn't visit the property. They compare your property to recent sales in the area and assess its current value based on those comparables. If your property is unusual or in a location with limited sales data, the lender may order a physical inspection instead.
The valuation usually takes one to two weeks. After that, the lender's credit team reviews your application and either issues formal approval or requests additional information. Conditional approval means they'll lend to you, but only after you satisfy certain conditions like providing an updated payslip or explaining a recent credit enquiry. Formal approval means you're cleared to proceed to settlement.
If the valuation comes in lower than expected, the lender may reduce the loan amount they're willing to offer. That can happen if property values in your area have softened since you bought, or if the valuer takes a conservative view of your property's condition. You can dispute the valuation, but most lenders won't budge unless you provide evidence of a clear error.
What Happens Between Approval and Settlement
After formal approval, your solicitor or conveyancer coordinates settlement. They'll request a payout figure from your current lender, prepare the discharge documents, and arrange for the new lender to transfer funds on settlement day. You don't need to do much during this stage except respond quickly if your solicitor asks for signatures or additional information.
Settlement usually happens four to six weeks after approval, though you can sometimes push it out further if you need more time. On settlement day, the new lender pays out your old loan, registers the new mortgage, and the switch is complete. Your first repayment under the new loan will be due about a month after settlement.
If you're refinancing to access equity, the process is the same except the new loan amount will be higher than your existing payout figure. The difference gets transferred to your nominated account on settlement day. Some lenders hold back the equity portion until a few days after settlement, so check the timing if you need those funds for a specific purpose like a deposit on another property.
Choosing Between Variable and Fixed Rates During a Refinance
You'll need to decide whether to lock in a fixed rate or switch to a variable rate when you refinance. Fixed rates give you certainty but lock you in for the term, usually between one and five years. Variable rates move with the market, which means your repayments can go up or down depending on what the Reserve Bank does with the cash rate.
FIFO workers often prefer fixed rates because it removes one variable from your financial planning. If you're managing a mortgage while working on a remote site, you don't want to be checking interest rate movements between shifts. A fixed rate means you know exactly what your repayment will be for the next few years, which makes budgeting straightforward.
Some people split their loan between fixed and variable. That gives you partial protection if rates rise, but you still benefit if rates fall. The split doesn't need to be 50-50. You can fix 70% and leave 30% variable, or any other combination that suits your risk tolerance. Just be aware that most fixed rate loans limit extra repayments to around $10,000 or $20,000 per year without triggering break costs.
How Long the Entire Process Takes From Start to Finish
From the day you submit your application to the day the new loan settles, expect four to eight weeks. That assumes you provide all requested documents within a few days and the valuation doesn't get delayed. If the lender's processing team is backed up or your application requires manual underwriting, it can stretch out to ten weeks.
The timeline also depends on how responsive your current lender is with the payout figure and discharge documents. Some lenders turn that around in a few days, others take two weeks. Your solicitor will chase them if they're slow, but there's not much you can do to speed it up.
If you're refinancing because your fixed rate is about to expire, start the process at least two months before the expiry date. That gives you enough buffer to complete the refinance before you roll onto the higher variable rate. If you're refinancing for another reason, you can take your time and wait until the right rate comes along.
Call one of our team or book an appointment at a time that works for you. We'll walk through your current loan, show you what's available, and handle the application from start to settlement.
Frequently Asked Questions
How long does the refinancing process take for FIFO workers?
The refinancing process takes four to eight weeks from application to settlement, depending on how quickly you provide documentation and how long the valuation takes. For FIFO civil engineers, most of that time is spent waiting for lender approval and coordinating settlement with your solicitor.
What documents do FIFO civil engineers need to refinance?
You'll need at least three months of payslips, a current employment contract, and often a letter from your employer confirming your roster pattern and that your role is ongoing. The letter should clarify any FIFO allowances and the expected duration of your assignment.
When should I start the refinancing process if my fixed rate is expiring?
Start the refinancing process at least two months before your fixed rate expiry date. This gives you enough time to complete the application, valuation, and settlement before you roll onto the higher default variable rate.
Can I access equity when I refinance my home loan?
Yes, you can access equity by refinancing to a higher loan amount than your current payout figure. The lender will reassess your borrowing capacity based on your current income and expenses, and the equity portion gets transferred to your account on or shortly after settlement.
Should FIFO workers choose fixed or variable rates when refinancing?
FIFO workers often prefer fixed rates because it provides certainty and removes one variable from financial planning while working on remote sites. You can also split your loan between fixed and variable to get partial protection if rates rise while still benefiting if they fall.
