Lenders assess a refinance on your repayment history, income and current loan details, so the paperwork you gather should prove those three things clearly. Having your documents ready early can help avoid delays from missing information.
This article explains what lenders want to see and why. It also covers the extra paperwork that applies if you are releasing equity or refinancing an investment property.
What Documents Do You Need to Refinance a Home Loan?
To refinance a home loan, you need to show your income, your existing loan details, your living costs and your identity. The new lender uses these to check the loan suits your requirements and that you can afford it.
Under the National Consumer Credit Protection Act 2009, a credit provider must make reasonable inquiries about your requirements, objectives and financial situation, and take reasonable steps to verify that situation. For a home loan, those inquiries and verification must be completed within 120 days before the assessment. Documents gathered months ahead can therefore go out of date.
In practice, this means recent payslips or business financials, your latest loan statements, and bank statements showing your spending. Your broker will tell you the exact items your chosen lender requires, as these differ between lenders.
Why Your Repayment History Matters Most
On a like-for-like refinance to a lower rate, lenders may place particular weight on how you have paid your existing loan. ASIC guidance says a refinance is likely to be suitable where repayments have been made when due, repayments will fall, and your circumstances have not worsened.
ASIC also notes that continued repayments can hide financial stress, so the history reviewed should cover a long enough period, for example 12 months. Download at least 12 months of statements for your current loan, and check for missed or late payments before you apply.
If you have had difficulty keeping up, tell your broker early. A new loan with similar repayments is likely to be unsuitable for a borrower in arrears, so it is better to talk through options before an application is lodged.
Getting Your Current Loan Details Ready
Your new lender needs your current contract details, including your interest rate, fees and remaining balance. ASIC's responsible lending guidance says a licensee should obtain these when assessing a switch.
Request a recent statement and a payout figure from your current lender. If you are on a fixed rate, ask about the break fee as well. Our fixed rate expiry page explains what to check as your fixed term nears its end.
A break fee applies only to ending a fixed loan early. Exit fees on residential loans taken out on or after 1 July 2011 are generally prohibited, but discharge fees and break fees are not. Ask your lender to itemise what will be charged at discharge.
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Refinance Costs to Weigh Against the Savings
A refinance only makes sense if the overall savings outweigh the costs. Moneysmart lists the common costs as break fees, discharge fees, application fees, and possibly lenders mortgage insurance if you have less than 20 per cent equity.
Broker fees also count. ASIC's guidance says overall cost savings must include the cost of the transaction and all fees and charges, including broker fees. A refinance can be recommended where savings are small only if the new loan better meets your objectives.
A longer loan term can also lower your repayments without saving you money. ASIC states that where repayments fall only because the term is longer, you will pay more interest over that term. A loan health check can compare your current loan against the market before you commit.
Example: Refinancing a Loan Coming Off a Fixed Rate
Consider a Brisbane couple whose fixed rate is about to end, and who want to move lenders. They have owner-occupied the home for several years and have not missed a repayment.
Their broker asks them to gather their last two payslips each, 12 months of loan statements, and their current rate and balance. They also request a payout figure and check whether a break fee would apply. Because the fixed term ends shortly, they time the discharge to avoid one.
For illustration, assume their remaining balance is $500,000 over 25 years. At an example rate of 6.75% per annum, principal and interest repayments are about $3,455 a month. If a new lender offered a lower rate, they could compare the new repayment against this figure and then subtract fees to see the true saving. Their paperwork is ready, so the lender can assess the application without delays for missing documents. Their broker confirms the savings outweigh the costs and the refinance goes ahead.
This example uses an illustrative rate only, and actual rates depend on your deposit size, your circumstances and the lender. Our refinancing team can run the numbers for your situation.
Extra Paperwork When You Release Equity
If you borrow more than your current balance, expect closer scrutiny. APRA describes like-for-like refinancing as moving lenders without increasing total debt, so a refinance that adds debt is assessed differently.
Expect to explain what the extra funds are for, and to provide a property valuation. Lenders also assess whether you can meet repayments at a rate well above the loan rate. APRA's serviceability buffer is 3 percentage points above the loan rate, and APRA confirmed on 28 May 2026 that it would stay at that level.
The trade-off is that a larger loan means higher repayments and more interest overall. Our borrowing capacity page is a useful starting point to see what you may be able to access.
Refinancing an Investment Property: Records for Tax Time
If the loan is for a rental property, keep records showing how each part of the borrowing was used. The ATO says interest is deductible only to the extent the loan is used to produce rental income, and a refinance can change what you can claim if extra funds are used for private purposes.
Keep the refinance documents and a record of any amounts added to the loan, noting whether each was for rental or private use. The ATO also treats borrowing expenses over $100 as deductible over five years or the loan term, whichever is shorter, but only for the income-producing part of the loan.
This is general information only and not tax advice. Speak with your accountant about how a refinance affects your deductions. If you are weighing up an investment loan restructure, involve your accountant before you sign.
To start your refinance with the paperwork in order, call one of our team or book an appointment at a time that works for you. We will review your current loan, confirm what your chosen lender needs, and give you a clear view of costs against savings.
Frequently Asked Questions
What documents do I need to refinance my home loan?
You generally need proof of income, current loan statements, details of your living costs and identification. Your broker will confirm the exact items your chosen lender requires.
How many months of loan statements should I provide?
ASIC guidance gives 12 months as an example of a sufficient repayment history period. Having at least that much ready helps a lender assess your application.
Will I pay a fee to leave my current lender?
Exit fees on residential loans taken out on or after 1 July 2011 are generally prohibited. Break fees on fixed loans and discharge fees can still apply, so ask your lender for an itemised payout figure.
Does refinancing an investment property affect my tax deductions?
It can, particularly if extra funds are borrowed for private purposes, as interest must then be apportioned. Speak with your accountant before you refinance.
