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
Lenders require two recent payslips and your two most recent tax returns if you're employed. Self-employed borrowers need two years of tax returns plus a notice of assessment from the ATO for each year.
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
You'll need three months of statements for every account where your income is deposited or expenses are paid. This includes savings accounts, offset accounts, and any redraw facility you use regularly.
Lenders calculate your living expenses from these statements, not from what you estimate. 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. Lenders don't always send a physical valuer, they often use automated models, and additional context can influence the outcome if the property sits on the borderline of a loan-to-value ratio tier.
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. Rates can change between application and settlement, and while most lenders honour the rate quoted at application, some reserve the right to reprice if settlement is delayed. 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?
You'll need two recent payslips and two years of tax returns if employed, or two years of tax returns plus ATO notices of assessment if self-employed. Lenders also require three months of bank statements for all accounts, a current loan statement, property valuation documents like a rates notice, and identification such as a driver's licence and Medicare card.
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?
Yes, lenders require three months of statements for every account where income is deposited or expenses are paid. They use these to calculate your living expenses and identify any debts or liabilities that may not appear on your credit file, such as buy now pay later accounts.
What happens if my property valuation is lower than expected?
A lower valuation may affect your loan-to-value ratio, requiring you to reduce the loan amount, provide additional savings, or accept a higher interest rate. Providing evidence of renovations or property improvements can sometimes influence the valuation if the lender uses an automated model.
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.
