Mortgage Refinancing

Are you considering refinancing your mortgage? If so, you're probably wondering what the process entails and what you need to do to qualify. Don't worry; we've got you covered. Here's a simple and useful checklist to give you an idea of what you need to refinance your mortgage.

Mortgage Refinancing Checklist in Australia

Before you start the refinancing process, it's essential to understand the requirements that lenders typically impose on borrowers. This will help you determine whether refinancing is right for you, and, if so, what you need to do to prepare for the process.

Here's a complete checklist of the requirements that you'll need to meet in order to refinance your mortgage:

1. Good Credit Score

One of the most important requirements for refinancing is a good credit score. Lenders will pull your credit report and score when you apply for a refinance, and they'll use this information to determine whether you're eligible for a loan and what interest rate they'll offer you.

Ideally, you should have a credit score of at least 726 to 832 in order to qualify for the best interest rates. However, you may still be able to refinance with a lower score.

2. Sufficient Equity in Your Home

In order to qualify for a refinance, you'll need to have enough equity in your home. Equity is the portion of your home's value that you own outright; it's the difference between your home's appraised value and the balance of your mortgage.

Lenders typically require you to have at least 20% equity in your home before they approve a refinance. However, there are some programs that allow you to refinance with as little as 5% equity.

3. Steady Income

Lenders will also want to see that you have a steady income in order to qualify for a refinance. They'll want to know that you have a job and that your income is sufficient to cover your monthly mortgage payments.

4. Good Debt-to-Income Ratio

In addition to looking at your income, lenders will also look at your debt-to-income ratio. This is the ratio of your monthly debt payments to your monthly income. Ideally, your debt-to-income ratio should be below 36 per cent. If your debt-to-income ratio is higher than that, you may have difficulty qualifying for a refinance.

5. Flawless Payment History

When you apply for a refinance, the lender will look at your payment history. They'll want to see that you have made all of your mortgage payments on time. If you have missed any payments, it may be more difficult to qualify for a refinance.

6. All the Necessary Paperwork

When you apply for a refinance, you'll need to provide the lender with a lot of documentation. This will include your tax returns, payslips, and financial statements. Be sure to have all the documentation ready before applying for a refinance.

  • Current home loan statement
  • Valid IDs (driver's licence, passport, or medicare card)
  • Records for assets you may own (investments etc.)
  • Proof of income (payslips, tax returns and Business Activity Statements)
  • Records of living expenses and other liabilities (credit cards/personal loans)


Applying for a home loan or refinancing can be a stressful process, but being prepared and knowing what to expect will make it a lot easier. Be sure to contact a mortgage broker who can help guide you through the process and make it as stress-free as possible.

Finding ways to finance your home shouldn't be hard at all, especially with the help of a mortgage broker like Wealthy You. As one of the best mortgage brokers in Sydney, Wealthy You is dedicated to helping clients with all kinds of financial needs. We are a specialist when it comes to alternative mortgage lending sources, giving your flexible and affordable financing options when you need them. Contact us today to learn more about our services.