Refinancing conveyancing in NSW: what you need to know

Refinancing your home loan in NSW involves legal steps beyond just signing a new loan agreement. A mortgage must be discharged from your property's title, and a new one registered. Whether you need your own conveyancer or solicitor depends on how straightforward your situation is.

What refinancing involves legally

When you refinance your home loan in NSW, two legal transactions occur on your property title:

1. Discharge of mortgage: your existing lender removes their mortgage from your property's title at NSW Land Registry Services. Until this is done, you are still legally encumbered by the original loan.
2. Registration of new mortgage: your incoming lender registers their new mortgage on the title. This gives them a legal security interest in your property.

Both of these steps require legal documents to be prepared, executed, and lodged with NSW Land Registry Services. In most refinances today, this happens electronically through the PEXA platform (Property Exchange Australia).

Unlike buying or selling property, refinancing does not involve a contract of sale, exchange, cooling-off period, or settlement between a buyer and vendor. The legal work is narrower but still requires licensed professionals on at least the lender's side.

Do you need your own conveyancer to refinance?

In a straightforward refinance, you do not always need your own conveyancer or solicitor. Your incoming lender will appoint their own legal representative (a solicitor or conveyancer from their panel) to handle the mortgage registration. Your outgoing lender handles their own mortgage discharge.

For many borrowers with a standard residential property, a single-owner title, and no complications on the title, the lender's panel firm handles the whole transaction and you sign documents directly with them.

However, there are situations where having your own licensed conveyancer or solicitor is strongly advisable. These are covered in the section below.

What the lender's solicitor does (and does not do)

The lender's solicitor or conveyancer acts for the lender, not for you. Their job is to ensure the lender's mortgage is correctly registered and that the lender's security interest is protected. Their obligations run to the lender, not to you as the borrower.

This means they will:

• Prepare and lodge the mortgage documents on behalf of the incoming lender
• Coordinate the discharge of the existing mortgage
• Confirm the title is clear for the new mortgage to register

They will not:

• Advise you on the terms of the loan
• Identify title issues that do not affect the lender's security (such as encroachments or easement issues that affect your use of the property)
• Represent your interests if a dispute arises

When you should get your own legal representation

You should seriously consider engaging your own licensed conveyancer or solicitor for a refinance if any of the following apply:

• Adding or removing a borrower or owner: if someone is being added or removed from the loan and/or the property title (for example, after a separation or marriage), this involves a transfer of title and is more complex than a standard refinance. Transfer duty may apply. You need independent representation.
• Multiple owners or tenancy changes: if the property is held by more than one person and the ownership structure is changing (for example, converting from joint tenancy to tenants in common), this is a title dealing requiring legal advice. See our guide: joint tenants vs tenants in common in NSW.
• Title complications: if there is an existing caveat, second mortgage, encroachment, or other registered dealing on the title, you may need your own advice on how this affects the refinance.
• Refinancing after a property dispute or court order: any court-ordered property dealing requires careful handling and your own legal representation.
• Commercial or investment properties: the lender's panel firm may not provide full advice on issues affecting your commercial interests. Your own solicitor can.
• If you are unsure: a 30-minute conversation with a licensed conveyancer or solicitor costs far less than fixing a title problem later. If anything about your title, ownership, or loan arrangement feels complicated, get advice.

What refinancing conveyancing costs

The costs in a refinance fall into two categories: lender-side legal costs (which you typically pay as a loan fee) and your own legal costs (if you engage a conveyancer).

Note: LRS fees are set by NSW Land Registry Services and change periodically. Always confirm current rates at NSW LRS fees and payments. Conveyancer and solicitor fees vary by firm, complexity, and location.

Stamp duty and refinancing

In a standard mortgage refinance in NSW, you do not pay transfer duty (stamp duty). Transfer duty applies to transfers of ownership -- and refinancing does not transfer ownership. You are simply changing the lender who holds a mortgage security over a property you already own.

NSW abolished mortgage duty on home loans in 2007, meaning there is no duty on registering a new mortgage.

If your refinance also involves a change of ownership (for example, adding a partner to the title, or a transfer following separation), transfer duty may apply to the ownership-transfer component. See our stamp duty NSW guide for rates and concessions, and speak to a conveyancer or solicitor about your specific situation.

PEXA and electronic settlement for refinancing

The vast majority of NSW mortgage refinances today are completed electronically through PEXA (Property Exchange Australia), the national e-conveyancing platform. Both your outgoing and incoming lenders' legal representatives connect through PEXA to handle the simultaneous discharge and registration of mortgages.

What this means for you in practice:

• You will typically receive loan documents electronically and sign digitally (or via DocuSign or a similar platform).
• Settlement occurs on the agreed date when all parties are ready in the PEXA workspace.
• You do not need to attend a settlement. The whole process is remote.
• Funds are transferred electronically on settlement day, with the existing loan paid out and the new loan drawn simultaneously.

PEXA is used for refinances where the property is in NSW. Some paper-based processes still exist for properties that cannot be transacted electronically, but this is rare for standard residential refinances.

How long does refinancing take in NSW?

A standard refinance in NSW typically takes 4 to 8 weeks from application approval to settlement, though this varies significantly by lender and complexity.

The most common cause of delays is the outgoing lender's discharge process. Some lenders have notoriously slow discharge turnaround. If you are on a deadline (for example, a fixed rate expiry date), factor this into your timeline and allow extra buffer.

FAQs

Conveyancing Explained provides general information about property transactions in Australia. It is not legal advice and does not create a client relationship. For advice on your situation, engage a licensed conveyancer, settlement agent, or property solicitor in your state or territory.