A home loan is likely to be the biggest purchase you will ever make, so it's important to understand what paperwork is required to get refinance your home loan.
If you're already a homeowner, it's likely you’ve gone through this process before - but it always pays to double check that you've completed all the necessary steps before signing on the dotted line.
Here are some of the documents you’ll likely need to provide when refinancing:
When you first apply for a home loan, you'll need to provide your lender with the details of your income. Likewise, when you're refinancing your mortgage, you need to prove that you can make regular repayments.
This can be in the form of:
Recent payslips that document your income.
Your most recent Group Certificate
your latest Tax Assessment Notice
A letter from your employer that confirms your salary.
If you're self-employed, the paperwork will be slightly different. When refinancing your lender will likely request two years of business and personal tax returns and Australian Taxation Office assessments as proof of your income.
When refinancing, you'll need to supply your lender with documents outlining the last six months of existing home loans and any other debts.
If you're sticking with the same lender (such as switching from a fixed to variable loan) they'll have your existing loan information, but you'll still need to provide details of any other loans you have.
You'll also need to provide your most recent credit card statement when refinancing your home loan.
Where possible, ensure you don’t fall behind on repayments of any kind so your refinance can be approved as soon as possible.
Lenders will need you to provide proof of ID, like a drivers license, passport, or birth certificate. If you don’t have any of these, you can often use things like a medicare card, credit or debit cards, or concession cards. You’ll also need to provide personal information like your current address, and date of birth.
Lenders will typically require you to provide a list of your current assets. This can include cash and savings, shares, vehicles (cars, boats, motorcycles), high-end jewellery and art, and cryptocurrency.
Different lenders will have different refinancing eligibility requirements, but typically you’ll need to meet the following criteria:
Be an Australian resident or permanent resident
Have more than 20% equity in your home, which will also help you avoid Lenders Mortgage Insurance
Have a good or excellent credit score and history
Be employed and have proof of income
Be over 18 years old
If you’re considering refinancing with us, check out how much you could borrow when switching to us by using our borrowing power calculator.
If you're refinancing for a better deal on your home loan for your existing property, you'll already have an understanding of the ins and outs of your home.
However, if you need to refinance to upgrade to a better house - or get a cosier home - you'll need to obtain a building report so you're confident a potential new property isn't hiding any nasty secrets! In addition, a pest inspection could save you from discovering a critter infestation down the track.
Once you're satisfied with the results of your building and pest reports, you'll be more confident to proceed with a purchase. Generally, if the reports show no sign of concern, you can make a conditional offer on a property. Before you do so, it's wise to have home loan pre-approval first.
Gather your credit history, existing loan details, and documents regarding your regular income to present to your lender.
With an accepted form of identification - such as a passport or driver's license - you'll be on track to getting your refinance approved.
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