What Documentation You'll Need for a Refinance Application
A refinance application requires proof of income, existing loan details, property information, and identification documents. Your lender uses these to verify your capacity to service the loan and assess the security property.
The core documents include recent payslips or tax returns, statements from your current mortgage, a rates notice or valuation for the property, and photo ID. The combination depends on your employment type and how you earn income. An applicant earning a salary submits payslips and a letter from their employer. A self-employed applicant submits tax returns and financial statements prepared by their accountant.
Consider a Brisbane couple refinancing an owner-occupied property to access a lower variable rate. Both are salaried, so they provide two recent payslips each, their most recent group certificate, and a letter from each employer confirming role and income. They also supply the latest statement from their existing lender showing the current loan balance, three months of statements from the account that receives their salary, and the most recent Brisbane City Council rates notice. The lender uses these to confirm income, verify repayment history, and determine the property's value for loan-to-value ratio calculations.
If you're self-employed, the submission changes. Lenders typically request two years of tax returns, including the full assessment notices from the ATO. Some lenders also ask for financial statements and, in certain cases, evidence of Business Activity Statements or company tax returns if you operate through a structure. The aim remains the same: proving consistent income over time.
Income Verification for Salaried and Self-Employed Applicants
Salaried applicants provide payslips and an employment letter. Self-employed applicants provide tax returns and financial statements.
For salaried applicants, lenders want to see your last two payslips and confirmation from your employer that you remain employed. The letter should state your role, income, and whether the position is permanent or contract. If you receive bonuses or overtime, lenders may average these over a period to determine whether they can be included in your serviceability assessment.
For self-employed applicants, the submission includes two years of individual tax returns with the full ATO notices of assessment. Lenders calculate your income based on taxable income, add-backs for certain deductions like depreciation, and sometimes a percentage of retained earnings if you operate through a company. If your business structure involves a trust or company, expect to provide additional documentation such as trust deeds, company extracts, and financial statements prepared by your accountant.
A Brisbane-based contractor might submit two years of tax returns showing income of $95,000 and $102,000 respectively, along with a letter from their accountant confirming the figures and the nature of the work. The lender uses the lower year or an average, depending on their policy. If the contractor also has a rental property, they'll need to provide a lease agreement and statements showing rental income and expenses.
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How Existing Loan Statements Influence the Assessment
Your current loan statement shows your repayment history and remaining balance. Lenders check for missed payments and calculate equity in the property.
A statement covering at least the past three months demonstrates whether you've maintained consistent repayments. Lenders look for any arrears or dishonours. If your account shows late payments, expect questions. One missed payment from a documented hardship event may not disqualify you, but a pattern of arrears typically does.
The statement also confirms your current balance, which the lender subtracts from the property value to determine available equity. If you're refinancing to release equity for another purpose, such as an investment property deposit, the statement helps the lender calculate how much you can access while maintaining an acceptable loan-to-value ratio.
Property Valuation and Council Rates Notice
Lenders use a rates notice or commission a valuation to confirm the property's current value. A Brisbane City Council rates notice provides the land valuation and sometimes an improvement valuation, which gives the lender a starting reference.
Most lenders will order a desktop valuation or kerbside assessment rather than rely solely on the rates notice. In some cases, particularly when the loan amount is high or the property is unique, they'll arrange a full inspection. You don't typically pay for this unless the lender advises otherwise upfront.
If you've recently completed renovations or if the property is in a suburb where values have moved significantly, mention this during the application. Lenders may adjust their approach if there's a reasonable case that the rates notice understates current value.
Bank Statements and Proof of Savings
Lenders request three months of statements from your primary transaction account and any other account relevant to the application. They're looking at your spending patterns, recurring commitments, and evidence of genuine savings if you're borrowing additional funds.
Statements reveal regular expenses such as car loans, personal loans, and credit card limits. Even if you pay the card in full each month, the lender includes the limit in their serviceability calculations. If you have unused credit facilities, consider closing them before applying.
Statements also confirm that the deposit or equity you're using has been held in your account for at least three months. A sudden large deposit raises questions about whether the funds are borrowed or gifted, both of which affect the lender's risk assessment.
How Long the Approval Process Takes Once Documents Are Submitted
Once your complete documentation is submitted, most lenders issue conditional approval within three to seven business days. The timeframe depends on the lender's volume and the complexity of your income or property situation.
Conditional approval means the lender is satisfied with your income, expenses, and credit profile but may request clarification or additional documents before formal approval. Common follow-up requests include updated payslips if time has passed, or confirmation of a bonus payment shown on a recent statement.
Formal approval follows once all conditions are met. Settlement typically occurs two to four weeks after formal approval, depending on your existing lender's discharge process and the availability of your solicitor or conveyancer. If you're refinancing with your current lender, the timeframe shortens because no discharge is required.
When to Request a Loan Health Check Before Refinancing
A loan health check is useful before you commit to a refinance application, particularly if your circumstances have changed since your last loan was approved. It reviews your current loan structure, compares available rates, and identifies whether refinancing delivers a tangible benefit.
If your fixed rate period is ending, a health check gives you time to assess options before rolling onto a variable rate that may not suit your situation. If you're considering equity release or loan consolidation, it clarifies how much you can access and what the repayments would look like.
We regularly see applicants who assume their current lender offers the most suitable product, only to find that another lender provides an offset account, redraw flexibility, or a lower rate that saves several thousand dollars over the life of the loan. A health check surfaces these options without locking you into an application.
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Frequently Asked Questions
What documents do I need to refinance my home loan?
You'll need proof of income such as payslips or tax returns, your current loan statement, identification documents, and a property rates notice. The exact combination depends on whether you're salaried or self-employed.
How long does refinance approval take once documents are submitted?
Most lenders issue conditional approval within three to seven business days after receiving complete documentation. Formal approval and settlement typically follow within two to four weeks, depending on your existing lender's discharge process.
Do lenders require a property valuation when refinancing?
Lenders usually commission a desktop or kerbside valuation to confirm your property's current value. In some cases, they'll arrange a full inspection, particularly for high loan amounts or unique properties.
Why do lenders request bank statements for a refinance?
Bank statements show your spending patterns, recurring commitments, and any existing debts. Lenders use these to assess your capacity to service the loan and to verify that any deposit or equity has been held in your account for at least three months.
What income documents are required if I'm self-employed?
Self-employed applicants typically provide two years of individual tax returns with full ATO notices of assessment, plus financial statements prepared by an accountant. Additional documents may be required if you operate through a company or trust structure.
