Documents needed to refinance your home loan

The documents needed to refinance usually fall into three groups: who you are, what you earn, and what you owe. When you refinance, a new lender assesses your application much like a fresh home loan, so most lenders ask for photo identification, recent proof of income, statements for your existing mortgage and other debts, and details of the property you are refinancing. Having this paperwork ready before you apply tends to make the switch faster and the costs clearer. This guide walks through the refinance paperwork a borrower is typically asked for, why each item matters, and how to weigh up whether switching is worth it.

Refinancing, also called switching home loans, means moving your loan to a different lender or to a different product with your current lender. It is general information, not advice about your situation. What any one lender requires depends on your circumstances and lender criteria.

What do you need to refinance your home loan

When you refinance, the new lender starts a fresh assessment of your ability to repay. That is why the document list looks similar to the one for a first mortgage, with the addition of records about your current loan. Knowing the buckets makes the list of what documents are needed to refinance a home easier to assemble.

Proof of identity

Lenders verify who you are before they assess anything else. Expect to provide photo identification such as a current driver’s licence or passport. Many lenders use a points-based identity check, so a second document like a Medicare card may be requested. Make sure the name and address match your other paperwork.

Proof of income

This is the core of the assessment. If you are an employee, lenders generally ask for recent payslips and may ask for a letter from your employer or a pay as you go (PAYG) summary. If you are self-employed, lenders usually ask for tax returns and notices of assessment, often for the most recent two financial years, along with business financial statements. Other income, such as rent you receive, is documented in the same way: with a statement that shows the amount and that it is ongoing.

Your current mortgage details

Refinancing adds one group of documents a first home buyer would not have: records about the loan you already hold. Be ready to provide your most recent home loan statements, your current interest rate and loan balance, and details of any fixed-rate period. These help the new lender understand what you are switching from and help you compare the real cost of moving.

Record of other debts and expenses

Lenders look at all your financial commitments to work out what you can comfortably repay. Be ready to list credit cards and their limits, personal loans, car finance, buy now pay later accounts, and any Higher Education Loan Program (HELP) debt. You will also be asked about your regular living expenses. Bank and credit card statements support these figures, so the numbers you provide should match what your statements show.

Property and equity details

Because you already own the home, the lender needs to understand the property and how much equity you hold. Expect questions about the property value and the current loan balance, and the new lender may arrange a valuation. As MoneySmart explains in its guide to switching home loans, having at least 20% equity strengthens your position. If you have less than 20% equity, a new lender may require lenders mortgage insurance (LMI), and the cost of LMI may cancel out the savings from a lower rate.

Credit history

A new lender checks your credit when you apply to refinance. As MoneySmart notes, lenders use your credit score to decide whether to lend to you, and a higher score means the lender will consider you less risky. Your credit report includes your personal details, the credit products you hold, your repayment history, defaults, and the credit applications you have made. You have a right to get a copy of your credit report for free every 3 months, and a credit score is usually a number between zero and either 1,000 or 1,200. Checking your own report before you apply lets you fix any errors and know where you stand.

For a fuller view of what lenders assess when you switch, the MoneySmart guide to switching home loans is a reliable starting point. If you would like a hand pulling the list together for your situation, the team at Finance Lab can talk you through it. You can also read our overview of refinancing options to see where the paperwork fits in the wider picture.

The refinance paperwork checklist

The documents needed to refinance mortgage applications tend to repeat across lenders, even though the exact list depends on your circumstances and lender criteria. Pulling the file together early is one of the simplest ways to keep a refinance moving.

A practical refinance paperwork checklist usually includes:

• Photo identification, current and in date.
• Recent payslips, or tax returns and notices of assessment if you are self-employed.
• Your most recent home loan statements, balance and current interest rate.
• Statements for every other debt: credit cards, personal loans, car finance and buy now pay later.
• A summary of your regular living expenses.
• Details of the property and an estimate of its current value.

Your equity shapes the rest of the application. With at least 20% equity you may avoid LMI, while less than 20% equity generally means a new lender requires it. Whether either path suits you depends on your circumstances and lender criteria.

To see how a different rate changes your repayments, you can try a calculator before you apply. Small differences in your mortgage interest rate can make a big difference to the long-term cost of your home loan, as MoneySmart points out, so it is worth modelling the change.

For how lenders read your credit when you apply, our explainer on the credit score lenders look at goes deeper.

How the documents fit the refinance steps

The paperwork is not collected all at once. It maps to the stages of switching a loan, and knowing the order helps you prepare the right thing at the right time. This is what documents are needed to refinance a house at each step.

What documents are needed to refinance a mortgage when you are self-employed

If you work for yourself, the assessment is the same but the income evidence is heavier. Lenders usually ask for tax returns and notices of assessment for the most recent two financial years, plus business financial statements and sometimes recent business activity statements. Clean, up to date records make a self-employed refinance smoother. If your most recent year was stronger than the one before, it is worth being ready to explain the trend, because lenders look at both.

If you would like the documents organised for you, the team at Finance Lab can prepare your file and approach lenders on your behalf.

Frequently asked questions

Pulling the documents together is the part you can control before you ever speak to a lender. If you would like help building your file and understanding what each lender may look for, the team at Finance Lab can guide you through it.