What Documentation Do You Need to Refinance a Home Loan?
You need proof of income, proof of assets, proof of liabilities, and property identification when you refinance your home loan. Lenders use these to verify your financial position has improved, stayed stable, or shifted enough to manage a different loan structure.
The actual list changes slightly depending on how you earn income. A PAYG employee submits recent payslips and tax returns. A self-employed borrower provides two years of financials, BAS statements, and accountant-prepared declarations. A FIFO worker often adds rosters and employment contracts showing regular shift patterns. Each variation exists because lenders need to prove your income is consistent enough to service the new loan amount.
Consider a borrower employed full-time in Perth who wants to refinance to access equity for an investment property. They submit two recent payslips, their last two tax returns, and a statement showing savings held for more than three months. The application moves through assessment in around ten days. The same borrower running a sole trader business needs P&L statements, balance sheets, tax assessments, and an accountant's letter. That file takes closer to three weeks because the lender's credit team manually reviews trading performance and seasonal cash flow.
When you apply to access equity or move from a fixed rate that just expired, the documentation list stays the same. What changes is how carefully lenders scrutinise the property valuation and your current debt position. If you are coming off a fixed rate and switching lenders, expect the new lender to order a fresh valuation even if your loan-to-value ratio looks comfortable on paper.
Income Verification for PAYG Employees
PAYG employees need two recent consecutive payslips and the last two years of tax returns or notices of assessment. Some lenders accept one year if you have been with the same employer for more than two years and your income has not changed.
Payslips must show year-to-date earnings, tax withheld, and superannuation contributions. If you rely on overtime, allowances, or commission, most lenders want to see those earnings across at least the last 12 months before they include them in serviceability. A nurse working in the Perth metro area earning penalty rates might find one lender accepts 100% of those loadings while another lender only accepts 80%. The payslips clarify what is base and what is variable.
If you recently changed employers or took a promotion, provide an employment contract or letter confirming your new salary. Lenders treat probation periods differently. Some will assess the application once you have passed probation. Others proceed if you have a signed contract and have started the role. Tax returns remain non-negotiable for most lenders, even when your income is straightforward.
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Income Verification for Self-Employed Borrowers
Self-employed borrowers provide two years of tax returns, two years of financial statements, and recent BAS statements if registered for GST. Lenders calculate your income by averaging net profit after tax across both years, then applying a loading or reduction depending on trends and add-backs.
Financials need to be prepared by a registered accountant. If you lodge your own tax or use an unregistered bookkeeper, most lenders will not proceed. The accountant's declaration confirms the figures are accurate and that depreciation, interest, and other non-cash expenses have been handled correctly. Some lenders allow add-backs for depreciation and home office expenses. Others do not. That difference can shift your borrowing capacity by tens of thousands of dollars.
In our experience, self-employed applicants underestimate how long it takes to get financials from their accountant. If you lodged your last tax return late or your accountant is waiting on documents, that delay flows straight into your refinance timeline. Start the conversation with your accountant before you speak to a broker, not after the lender requests documents.
Asset and Liability Statements
You need to declare every asset you own and every liability you owe. Assets include savings accounts, offset accounts, shares, super balances, and other property. Liabilities include credit cards, car loans, personal loans, HECS debt, and any existing mortgages.
Lenders request statements covering the last three months for transaction accounts and savings. They look for genuine savings, regular income deposits, and spending patterns that align with what you declared. If you have a redraw facility or offset account attached to your current mortgage, provide a statement showing the balance. That balance reduces the amount you owe when calculating equity available to release.
Credit card limits matter more than balances. A card with a $20,000 limit and a zero balance is still assessed as if you owe the full $20,000. If you are not using a card, cancel it before you apply. If you are carrying a balance on multiple cards or personal loans, refinancing with debt consolidation into your mortgage can improve your serviceability, but only if the lower monthly repayment offsets the impact of the higher loan amount.
We regularly see applicants surprised when a small $5,000 personal loan or a Buy Now Pay Later account they forgot about reduces their borrowing capacity by $30,000 or more. Pull your credit file before you apply. It shows every open account, every missed payment, and every default. If something is listed incorrectly, dispute it before the lender sees it.
Property Valuation and Identification
Lenders order a valuation once your application is submitted. You do not arrange this yourself. The valuation determines how much equity you can access and whether the loan-to-value ratio meets the lender's criteria.
Most lenders use desktop or kerbside valuations for refinances where the loan-to-value ratio is below 80%. If you want to borrow more than 80% or the property is unusual, they send a valuer to inspect. Valuations in metro Perth suburbs like Applecross or Joondalup typically align with recent sales. In regional WA or areas with fewer comparable sales, valuations can come in lower than expected.
If the valuation falls short, your options are to reduce the loan amount, provide a larger deposit if you are accessing equity, or challenge the valuation with supporting evidence. Challenging a valuation works only if you have recent sales data the valuer missed. Anecdotal evidence about what your neighbour sold for does not shift the number.
How Long Does It Take to Gather Documents?
PAYG employees can usually gather documents in one to two days. Self-employed borrowers need one to three weeks, depending on whether financials are current and the accountant is responsive.
The delays we see most often are waiting for accountants, waiting for strata reports if the property is a unit, and waiting for payout figures from the current lender. Payout figures expire after 30 days, so if your application drags on, you may need to request a new one. Strata reports for apartments in complexes around Perth take between three and ten business days. If the body corporate is slow or the building has defects under review, that timeline stretches.
If you are refinancing because your fixed rate period is ending, start gathering documents at least 90 days before expiry. That gives you time to compare rates, submit the application, and settle before you roll onto a higher variable rate.
What Slows Down Refinance Applications in WA
Incomplete income evidence is the most common delay. Payslips missing year-to-date figures, tax returns not yet lodged, or financials that do not reconcile with BAS statements all trigger requests for more information.
The second most common delay is undeclared liabilities. A credit card you forgot about, a car loan in your name for a family member, or a joint mortgage on a property you no longer live in all show up when the lender pulls your credit file. If you did not declare them upfront, the application pauses while the lender reassesses serviceability.
Property title issues also create delays. If your name on the mortgage does not match your name on your identification because you changed your name after marriage or divorce, you need to provide a marriage certificate or change of name certificate. If there is a caveat or second mortgage on the title, you need to resolve that before settlement.
Most of these delays are avoidable. A loan health check before you formally apply picks up missing documents, undeclared debts, and serviceability issues while there is still time to fix them.
Call one of our team or book an appointment at a time that works for you. We will review your current loan structure, compare what is available, and tell you exactly what documents you need before you apply.
Frequently Asked Questions
What income documents do I need to refinance if I am a PAYG employee?
You need two recent consecutive payslips and the last two years of tax returns or notices of assessment. If you rely on overtime, allowances, or commission, lenders want to see those earnings across at least 12 months before including them in serviceability.
How long does it take self-employed borrowers to gather refinance documents?
Self-employed borrowers typically need one to three weeks to gather documents, depending on whether financials are current and how responsive their accountant is. You need two years of tax returns, two years of financial statements, and recent BAS statements if registered for GST.
Do lenders assess credit card limits or balances when refinancing?
Lenders assess credit card limits, not balances. A card with a $20,000 limit and a zero balance is still treated as if you owe the full $20,000, which can reduce your borrowing capacity significantly.
How long does a property valuation take when refinancing in Perth?
Desktop or kerbside valuations for refinances below 80% loan-to-value ratio are usually completed within a few days of application. Full inspections for higher loan-to-value ratios or unusual properties can take up to two weeks.
When should I start gathering documents if my fixed rate is expiring?
Start gathering documents at least 90 days before your fixed rate expires. This gives you time to compare rates, submit the application, and settle before rolling onto a higher variable rate.
