Home Loan Checklist for Refinancing

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So you want to refinance your home loan, but you're not too sure what documents you'll need to submit to your lender to be approved. As well as the documents you submitted when getting your original home loan, you'll need to supply some additional paperwork, so it's important to be sure of what you'll need to collect.

You can also use our home loan documents checklist for refinancing, which allows you to tick off each document once you have it so you can be confident that you haven't missed anything in your application. If you're a doctor, engineer, lawyer or IT professional, we've made specific checklists for your occupation so you're ready to apply for a specialised home loan for your profession.

If you're finding the process of refinancing time-consuming or overwhelming, you're not alone. Our experienced mortgage brokers can save you time and money by helping you compare loans, collect the relevant paperwork and submit your application. We're always available to chat, so feel free to get in touch.

This article explains what documents you'll need when refinancing your home loan and why you'll need them. It also mentions the other documents you need when applying for a home loan, even if you already have one.

The documents you'll need can be split into a few sections:

  • Special documentation for refinancing
  • Personal identification
  • Income details
  • Assets and Liabilities
  • Expenses
  • Property details

You can also watch our short video summarising what you'll need when buying a home or refinancing:

INSERT VIDEO: WHAT YOU'LL NEED WHEN BUYING A HOME OR REFINANCING

Special documentation for refinancing

When refinancing your home loan, there's some extra paperwork you'll need to provide. Since refinancing may require you to switch lenders, your new lender will need details about your existing loan to assess your application.

These details include:

  • Home or investment loan statements from your existing lender from the last three months
  • The current balance of any loan/s being refinanced, including pay-out costs

Your lender will also need to know why you want to refinance. People decide to refinance for many different reasons. Here are just a few of the reasons why you may want to refinance your loan:

If you're releasing your equity to use as spendable cash, you'll need to tell your lender where you're planning to spend this money. Common ways in which this equity is spent include:

  • Renovations (to increase the value of your home or an investment property)
  • Investment (buying an investment property, buying shares)
  • Starting a business  (instead of waiting for a business loan to be approved)
  • Luxury purposes (going on a holiday, buying a car)

Personal identification

Your lender will require documentation to verify your identity. This is usually provided by primary photo identification, which includes your:

  • Current passport
  • Current driver’s licence
  • Current Proof of Age Card or other State or Territory issued photo card

If you cannot provide any primary photo identification, your lender will require secondary identification documents. This could include your:

  • Birth certificate
  • Medicare card
  • Citizenship certificate
  • Recent utility bills with your name and current address
  • Tax assessment notice
  • Debit/credit card information

Income details

Your income details are very important when refinancing. Everyone’s income situation is different and different lenders require different types of documentation for your application to be accepted. It’s important to be familiar with a lender’s specific requirements before applying so you don’t miss anything.

Here’s what you’ll need to provide to your lender based on the most common income types:

  • Employee (full-time, part-time or casual): Two or three of your most recent payslips and a payment summary from your employer
  • Self-employed: Your ABN (Australian Business Number) and ATO tax assessments from the past two years
  • Rental income: A signed lease and your most recent rental statement
  • Foreign income: Evidence of that income for the last three months
  • Government income (superannuation, pension, annuity, etc.): Evidence of that income for the last three months
  • Interest or dividend income: Evidence of the current balance of the asset and income earned in the last 12 months

You may also be wondering what kinds of income are accepted by lenders and what conditions surround each income type. These conditions vary from lender to lender, but this list can be used as a general guide:

  • Base PAYG salary: 100% accepted for full time and part time work
  • Casual income: 100% can be accepted. Most lenders require you to have remained with the same employer for at least 12 months, however, some will accept a casual income after 3 months with your current employer
  • Overtime: Some lenders will accept 100%, however, most lenders only accept 80%. In any case, you will need to have stayed with your current employer for at least 3 months
  • Allowances: Some lenders will accept 100%, however, most banks only accept 80%. This all depends on the type of allowance

Assets and Liabilities

Your assets are the things you own and your liabilities are current outstanding debts. When looking for information on your assets and liabilities, a lender may ask for:

  • A detailed list of your assets
  • Any personal loan statements
  • Any debit/credit card statements
  • Any store card statements
  • Superannuation statements
  • Information about shares you own
  • Account statements from the past three months for all loan, savings and transaction accounts you have (including proof of your deposit)

Expenses

Details regarding your expenses are also important for lenders to have when you apply for a home loan. Your lender will typically ask for monthly expenses, which can include:

  • Current rent or board information
  • Current child support details
  • Higher Education/Vocational Training
  • Insurance (including life, health, sickness and personal accident insurance)
  • Medical and health (excluding insurance)
  • Private or independent primary and secondary schooling and tuition
  • Utility bills
  • Recreation and entertainment
  • Telephone/internet/pay TV/media streaming plans and subscriptions
  • Transport
  • Other applicable monthly costs

Property details

Your lender will also need some information about the property you're applying for before they can finalise your home loan.

If you're buying an existing home, you will need:

  • A signed contract of sale

If you're building a home, you will need:

  • A signed contract of sale
  • Council approval building plans and specifications or a building permit
  • A Fixed Price Builders Contract  

So, if you're ready to find your home loan, we're ready to help. Get in touch with one of our experienced brokers via our website, or explore our other posts about refinancing.

Disclaimer: The information provided is general in nature and does not constitute financial advice. Please speak to us for recommendations on your individual circumstances and requirements.

Emily James
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