A refinance application moves faster when your documentation is complete before you submit.
Lenders assess your current financial position the same way they did when you first borrowed, sometimes more thoroughly. The difference now is that you know what to expect, and you can prepare everything in advance. Most applications stall because something is missing, not because the applicant doesn't qualify.
Income Verification: Payslips and Tax Returns
Income-document requirements vary between lenders. PAYG employees will generally need recent payslips or other accepted evidence of salary income, such as bank statements showing salary credits or an employment letter. Self-employed borrowers may need personal and business tax returns, financial statements and corresponding ATO Notices of Assessment for one or two financial years, depending on the lender and application.
Consider someone refinancing a property in Bentleigh East who runs a sole trader business from home. Their income fluctuated between the two most recent financial years, with one year showing lower profit due to equipment purchases. The lender requested a profit and loss statement for the current year to date, prepared by their accountant, to demonstrate that income had returned to the higher level. Without that additional document, the application would have been assessed on the lower year's income, reducing borrowing capacity and potentially blocking access to the rate they wanted.
If your employment or business structure changed in the past year, expect the lender to ask for an explanation and supporting evidence. A letter from your employer confirming ongoing employment, or a contract if you're a contractor, removes ambiguity.
Bank Statements and Living Expenses
Depending on the lender and application, you may be asked to provide recent statements for accounts where your income is deposited or expenses are paid. This could include transaction, savings and offset accounts, as well as details of any redraw facilities you use regularly. Lenders will ask you to declare your living expenses and may review your transaction history to check that the figures provided are reasonable. They may also compare your declared expenses against an expenditure benchmark, with assessment methods varying between lenders. They look for recurring debts, subscription services, childcare costs, and spending patterns. If you have a buy now pay later account or a personal loan that doesn't appear on your credit file yet, it will show up here.
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In our experience, applicants underestimate how closely lenders review transaction history. A $15 monthly subscription doesn't matter, but six different subscriptions plus two buy now pay later accounts with balances can reduce your borrowing capacity by tens of thousands. If you're planning to consolidate debt into your mortgage during the refinance, those liabilities need to appear clearly in your statements so the lender can account for them in the new loan amount.
Property Valuation and Council Rates
The lender will order a valuation, but you should have a recent council rates notice ready. It confirms the property address and your ownership, and some lenders use it to verify that rates are up to date.
Valuations in Bentleigh East often reflect the suburb's proximity to Centre Road shops, Bentleigh Secondary College, and the train line. Properties within walking distance of these amenities typically hold valuation better than those on the outer edges near the industrial areas along Boundary Road. If your property has been renovated since you purchased it, mention this in the application and provide photos or a depreciation schedule if you have one from an investment property claim. If your property has undergone substantial renovations since you purchased it, mention these in the application. Supporting evidence may help with a request for a valuation review or a full inspection, although the valuation method available will depend on the lender’s policy.
If the valuation comes back lower than expected and it affects your loan-to-value ratio, you may need to reduce the loan amount, provide a larger deposit from savings, or accept a slightly higher rate. Knowing the likely valuation range before you apply helps you structure the loan amount correctly from the start.
Existing Loan Statements and Offset Account Balances
Your current lender's most recent statement shows your outstanding balance, the interest rate you're paying, and whether you're ahead or behind on repayments. If you have an offset account, include a statement showing the current balance.
Some borrowers in Bentleigh East refinance to access equity for an investment property deposit. The lender calculates available equity by taking the valuation, multiplying it by 80% (or whichever loan-to-value ratio applies), then subtracting your current loan balance. If you have $50,000 in offset, that doesn't increase the equity you can access, but it does demonstrate savings behaviour and reduces the lender's risk assessment. Keep the offset balance where it is until settlement unless you need it for another purpose.
If you're coming off a fixed rate period and refinancing at the same time, provide the original loan contract or a statement showing when the term ended. Some lenders charge break costs if you exit a fixed term early, and you'll need to budget for that in your settlement costs.
Identity Documents and Credit File
You'll need a driver's licence or passport, plus a Medicare card or rates notice to satisfy identification requirements. If your name has changed since you took out the original loan, bring the marriage certificate or change of name documentation.
Lenders pull your credit file during the application, but you should check it yourself first through a free service. Look for any defaults, overdue accounts, or incorrect information that could affect your application. A single default, even if it's disputed, can delay approval while you provide a statutory declaration or evidence that it's been resolved.
How Long Does Refinance Approval Take?
Once your documentation is submitted, most lenders take between five and ten business days to issue conditional approval. Final approval and settlement usually happen within four to six weeks, depending on how quickly the valuation is completed and whether any additional information is requested.
If you're refinancing to access a lower rate or switch from fixed to variable, timing matters. Interest rates can change between application and settlement. For fixed-rate applications, some lenders may offer a rate-lock facility, which can involve a fee and eligibility conditions. Your broker can confirm when the applicable interest rate will be determined. Submit your documents as soon as you have them, and respond to any lender requests within 24 hours.
Refinancing isn't about gathering perfect documentation, it's about being thorough enough that the lender can assess your application without delays. Call one of our team or book an appointment at a time that works for you.
Frequently Asked Questions
What documents do I need to refinance my home loan?
The documents required will depend on your lender, income type and individual circumstances. PAYG employees will generally need recent payslips or other accepted evidence of salary income. Self-employed borrowers may need personal and business tax returns, financial statements and ATO Notices of Assessment. You may also be asked for bank statements, a current home loan statement, a council rates notice and identification documents.
How long does refinance approval take in Bentleigh East?
Most lenders take five to ten business days for conditional approval once documentation is submitted. Final approval and settlement typically occur within four to six weeks, depending on valuation completion and whether the lender requests additional information.
Do I need to provide bank statements when refinancing?
You may need to provide recent bank statements when refinancing, although the period and accounts required vary between lenders. Statements may be used to verify income, review declared living expenses and identify debts or liabilities relevant to the application.
What happens if my property valuation is lower than expected?
A lower valuation may affect your loan-to-value ratio, which could mean reducing the loan amount, contributing additional funds or, depending on the lender and product, receiving a different interest rate. Evidence of substantial renovations or improvements may support a request for the valuation to be reviewed or for a full valuation to be completed, although the lender decides whether another valuation method is available.
Can I refinance to access equity for an investment property?
Yes, lenders calculate available equity by taking your property valuation, multiplying by 80% or the applicable loan-to-value ratio, then subtracting your current loan balance. You'll need documentation showing your current loan balance and a recent valuation to determine how much equity you can access.
