Lenders assess a refinance on your income evidence, your current loan details and your repayment history, so getting these in order early is what keeps your application moving.
Oral surgeons often have income that is hard to read at a glance. You might be an employee, a practice owner, a contractor across several clinics, or a mix of all three. That is fine, but it means your paperwork needs to tell a clear story. This guide covers what a lender wants to see and why, so you can prepare before you apply for a refinance.
What Documents Do You Need to Refinance a Home Loan?
You need proof of who you are, proof of your income, and the details of your current loan and any other debts. Lenders must make reasonable inquiries about your requirements and financial situation, and take reasonable steps to verify it, so the evidence is there to back up what you tell them.
For your existing loan, expect to provide a recent statement showing the balance, interest rate, fees and repayment history. ASIC guidance says a lender on a refinance should obtain your current contract details, including the rate and fees, along with your repayment history. For other debts, such as credit cards, a car loan or a practice equipment loan, recent statements show the limits and balances the lender has to count.
Your home loan refinancing application is stronger when these documents are current and match each other, so provide current statements.
How Oral Surgeons Can Show Income for a Refinance Application
The documents depend on how you earn. Employees usually show payslips and a tax return. Practice owners and sole traders usually show tax returns and notices of assessment, and sometimes business financials. Lenders can ask for different things, so it pays to check before you gather them.
If you earn through a company or trust, the lender may want to see both the entity's returns and your personal returns, so the picture of your take-home income is complete. If your income has changed recently, a short explanation helps. Moving from employee to practice owner is a common example.
If your paperwork is not standard, our page on self employed loans for dentists explains how lenders view business income. Your borrowing capacity also depends on this evidence, so it is worth getting it right first.
Why Repayment History Matters on a Refinance
A clean repayment history is often the strongest part of a refinance application, especially when you are moving to a lower rate without borrowing more. ASIC says a refinance to a lower rate with no additional borrowing is likely to be suitable where you have paid on time, repayments will fall and your circumstances have not worsened.
ASIC also notes that continued repayments can hide financial stress, so lenders may look at a period such as 12 months. Check your statements for missed or late payments before you apply. If there is a blip, such as a payment that bounced during a move, have a brief explanation ready.
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Book a chat with a Finance & Mortgage Brokers at Home Loans for Dentists today.
Refinancing Example: Documents in Action
Consider an oral surgeon who owns a clinic through a company and has a home loan at the illustrative rate of 6.75% p.a. They want to move to a lender offering a lower rate, with no extra borrowing. Their income is split between company distributions and a salary from a hospital list.
The problem is that the company's latest financials are not finalised, and the hospital payslips do not show the full picture. Instead of sending documents piecemeal, they prepare a pack: personal tax returns and notices of assessment, company returns, recent payslips, current loan statements, and a short note explaining how the income is structured.
The outcome is a cleaner assessment. The lender can see the income, the repayment history and the existing loan details together, so there are fewer follow-up requests. Whether the switch pays off still depends on the new rate, the fees and the time they stay with the loan. The key is that the paperwork was ready before the application, not chased afterwards.
Refinance Costs to Check Before You Apply
Check your current loan for break fees, discharge fees and any fee on the new loan before you commit, because costs can outweigh the savings. ASIC's Moneysmart lists a break fee on a fixed rate loan, a discharge or termination fee, and an application fee on the new loan among the costs of switching.
A break fee applies only if you leave a fixed rate loan before the fixed term ends. If your fixed rate expiry is close, waiting may avoid it. Fees vary by lender, so confirm the amounts with your current and new lender.
If you have less than 20 per cent equity, Moneysmart says you might have to pay lenders mortgage insurance on the new loan, which adds to the cost. A property valuation may also be part of the process, so ask your lender who arranges it and who pays.
Special Cases: Scheme Loans and Extra Borrowing
If you borrow more than your current balance, the refinance is no longer like-for-like, and the lender will look more closely at your capacity and the purpose of the funds. If you want to release equity, expect to explain what the money is for.
If the borrowing relates to an investment property, the purpose matters for tax. The ATO says interest on any part of a loan used for private purposes cannot be deducted, so mixing uses can change what you can claim. Speak with your accountant before you restructure.
If your loan is under the Australian Government 5% Deposit Scheme, Housing Australia guidance says you may keep the benefit only by refinancing with another Participating Lender without increasing the loan or extending the term. Moving to a lender outside the scheme counts as full repayment and the loan loses the scheme benefit. If the LVR is still above 80 per cent, the lender may then impose LMI or other costs under its policies.
A Health Check Before You Gather Anything
A loan health check tells you whether a refinance is worth pursuing before you spend time collecting documents. A broker must act in your interests, and that includes advising you to stay put if switching would cost more than it saves.
Call one of our team or book an appointment at a time that works for you. We will review your current loan, tell you which documents suit your income, and help you assemble a pack that matches your situation.
Frequently Asked Questions
What documents do I need to refinance my home loan?
You generally need identification, proof of income, current loan statements and details of other debts. The exact documents depend on whether you are an employee, practice owner or both, so check with your broker first.
Does my repayment history affect a refinance?
Yes. ASIC guidance says a refinance to a lower rate with no extra borrowing is likely to be suitable where you have made repayments on time, your repayments will fall and your circumstances have not worsened. Lenders may look at around 12 months of history.
What costs can apply when I refinance?
Costs can include a break fee on a fixed rate loan, a discharge fee, an application fee on the new loan and possibly lenders mortgage insurance. Amounts vary by lender, so confirm them before you switch.
Can I keep the 5% Deposit Scheme benefit if I refinance?
Possibly. Housing Australia guidance says you may keep it by moving to another Participating Lender without increasing the loan or extending the term. Moving to a non-participating lender ends the benefit, and if the LVR is still above 80 per cent the lender may impose LMI or other costs.
