Most refinance applications slow down because of missing or incomplete documentation, not because of credit issues or property concerns.
Lenders assess your application based on what you can verify. If you submit incomplete payslips, outdated bank statements, or a property valuation that does not reflect current improvements, your application sits in a queue while the lender requests updates. That delay costs you time and potentially a lower rate if market conditions shift while you wait.
Income Verification: What Lenders Actually Review
Lenders need to confirm your income has remained stable or improved since your original loan. For PAYG borrowers, that means your two most recent payslips and your most recent notice of assessment from the ATO. If your income has increased since your last tax return, your payslips carry more weight. If your income has dropped, the lender will ask why.
Consider a borrower refinancing in Camberwell who changed employers six months ago. Their payslips showed a higher base salary, but their most recent notice of assessment reflected their previous role. The lender approved the application based on current payslips, but required a letter from the new employer confirming permanent employment. That added three days to the process, which could have been avoided if the letter had been included upfront.
For self-employed borrowers, lenders typically require two years of tax returns, two years of notices of assessment, and recent business financials. If your business structure changed in the past two years, such as moving from a sole trader to a company, you will need to explain that transition and provide documentation for both entities.
Property Valuation: How Lenders Assess Your Security
Your property secures the loan, so lenders will either conduct a desktop valuation or send a valuer to your home. If you have renovated, extended, or made structural improvements since your original loan, mention this in your application. A kitchen renovation in a period home in Malvern might add significant value, but only if the valuer knows to look for it.
Desktop valuations rely on recent sales data in your suburb. If comparable properties have sold for higher prices in the past six months, your valuation will likely reflect that. If the market has softened, the valuation may come in lower than expected, which can reduce the amount you are approved to borrow or require you to provide additional equity.
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Liability Documentation: Existing Debts and Commitments
Lenders assess your loan application against all your current financial commitments. That includes credit cards, car loans, personal loans, and any investment property debt. Even if you rarely use a credit card, the lender will assess your serviceability based on the full credit limit, not your actual spending.
If you hold multiple credit cards with a combined limit of $50,000, the lender assumes you could draw that full amount at any time. Closing unused cards before you apply can improve your borrowing capacity and make your application more attractive. The same applies to buy-now-pay-later accounts, which are now treated as ongoing credit commitments by most lenders.
Provide statements for all liabilities covering the most recent month. If you have paid off a car loan or personal loan in the past three months, include evidence of closure. Lenders will verify this through credit reporting, but including proof upfront removes any ambiguity.
Bank Statements: Why Three Months Matters
Lenders use your bank statements to verify income, confirm regular expenses, and identify any patterns that might affect serviceability. Most lenders require three months of statements for all accounts where your income is deposited or where you make regular payments.
Statements need to show the account holder name, account number, and transaction history. Screenshots or partial downloads are not sufficient. If you bank with multiple institutions, you will need statements from each one. If you have offset accounts linked to your current home loan, include those as well.
Lenders look for consistent income deposits, regular savings patterns, and any unusual transactions that might indicate undisclosed liabilities. Large cash deposits without explanation can trigger additional questions. If you sold a car or received a tax refund, note that on the statement or include supporting documentation.
How to Organise Your Documents Before You Apply
Before submitting your refinance application, create a single folder with clearly labelled files. Name each document with the type and date, such as "Payslip_March_2026" or "Bank_Statement_Jan_to_Mar_2026". This makes it straightforward for your broker to review your documents and for the lender to process your application without delays.
If you are refinancing to access equity or consolidate debt, include a brief explanation of how you plan to use the funds. Lenders are more likely to approve equity release when the purpose is clear and the additional borrowing is structured appropriately.
Check that all documents are current. A payslip from two months ago may have been acceptable when you started gathering paperwork, but if your application is submitted weeks later, the lender will request an updated version. The same applies to bank statements, which must cover the most recent three-month period at the time of submission.
Identity and Property Documents
You will need to verify your identity using a current driver's licence or passport, plus a recent rates notice or utility bill showing your residential address. If your name has changed due to marriage or other reasons, provide a marriage certificate or change of name documentation.
For the property being refinanced, provide a copy of your current loan statement showing the outstanding balance and the lender's name. If you are refinancing an investment property, include your most recent rental statement or lease agreement. This confirms the rental income the lender can include in their serviceability assessment.
If you co-own the property with a spouse or partner, both parties will need to provide identity documents and sign the application. If one party is not on the title but will be a borrower on the new loan, you may need to update the title before settlement, which adds time to the process.
Documentation requirements can vary between lenders, but having these core documents ready means your broker can submit your application to multiple lenders if needed without waiting for additional paperwork. That flexibility can be the difference between locking in a lower rate and missing the window.
Call one of our team or book an appointment at a time that works for you. We will review your circumstances, confirm what documentation your lender will require, and make sure your application is structured to get approved without unnecessary delays.
Frequently Asked Questions
What income documents do I need to refinance my home loan?
PAYG borrowers need two recent payslips and their most recent ATO notice of assessment. Self-employed borrowers typically require two years of tax returns, notices of assessment, and recent business financials.
How many months of bank statements do lenders require for refinancing?
Most lenders require three months of bank statements for all accounts where income is deposited or regular payments are made. Statements must show the account holder name, account number, and full transaction history.
Do I need a property valuation to refinance?
Lenders will either conduct a desktop valuation or send a valuer to your property. If you have completed renovations or improvements since your original loan, mention these in your application as they may increase your property value.
Should I close unused credit cards before refinancing?
Closing unused credit cards before you apply can improve your borrowing capacity. Lenders assess serviceability based on the full credit limit of all cards, not your actual spending, so reducing total available credit can strengthen your application.
What property documents do I need for a refinance application?
You need a copy of your current loan statement showing the outstanding balance, identity documents such as a driver's licence or passport, and a recent rates notice or utility bill. For investment properties, include your most recent rental statement or lease agreement.
