Written by

Steven Lee

Mortgage Director, ODIN Mortgage & Tax

10+ years in Australian banking and mortgage lending

Last reviewed

Updated on: June 10, 2026 View profile →

Am I Eligible for Refinancing?

You’ve been chipping away at your mortgage for years. Maybe your salary’s climbed, or maybe your interest rate has crept up. You hear whispers of better deals—but then doubts creep in: Am I eligible for refinancing? What if a lender rejects you before you even get started?

Here’s the kicker: qualifying to refinance isn’t magic. Lenders follow clear rules — and once you know them, you hold a lot more control. This guide is your insider manual to understanding refinance eligibility — and what to do if your profile isn’t quite there yet.

We break down the key criteria — from equity thresholds and credit history, to employment, debt load, and special cases like expats or temporary residents. By the end, you’ll know exactly where you stand — and what your next steps should be to qualify for refinancing.

Let’s dive in.

Requirements for Home Loan Refinancing in Australia

To refinance your home loan in Australia, you generally need at least 20% equity, a stable income, a solid credit score, and be 18 or older.

Even if you don’t meet one area perfectly, some lenders may still consider your application—especially if you’re strong in the others. Check out Why Do Banks Need Bank Statements For Refinancing for more details.

Let’s break these down so you know where you stand and what you may need to improve.

1. Sufficient Home Equity

Most lenders require that you have at least 20% equity. This means your Loan to Value Ratio (LVR) is 80% or less.

Why? It shows you have a decent stake in your property, making you seem less risky. Having 20% equity usually means:

You avoid paying Lenders Mortgage Insurance (LMI) – more on that below.
You can often get better interest rates and deals.
You have more bargaining power.

If you have less than 20% equity (above 80% LVR), you need to pay LMI. It can cost thousands of dollars, sometimes wiping out the savings you’d get from refinancing. It’s usually a one-off payment when you get the loan. Note that LMI generally isn’t transferable if you switch lenders.

Equity depends on your home’s current market value. If prices go up, your equity increases. If prices fall, your equity can shrink, potentially making refinancing harder or triggering LMI.

Here’s a quick guide to LVR and LMI.

Your LVR Range	Your Equity Range	Will You Likely Pay LMI?	Lender Options	What it Means for You
80% or less	20% or more	Usually, no	Lots	Best chance for good rates, avoid LMI cost
80.01% – 90%	10% – 19.99%	Usually, yes	Fewer	LMI applies, maybe higher rates
90.01% – 95%	5% – 9.99%	Almost definitely	Even Fewer	LMI, stricter criteria, most likely higher rates
Over 95%	Less than 5%	Definitely	Very Few	Refinancing is generally not an option

Note: Always check specific lender criteria.

👉 Also see: Will Refinancing Save Me Money?

2. Stable Employment and Income

Lenders check if you can repay the loan. This is called serviceability. You need to show proof of regular, ongoing income.

Lenders also like to see a steady job history. Hopping between jobs frequently, especially in different fields, raises questions.

If You’re an Employee (PAYG)

Usually, you’ll need:

Recent payslips (last couple of months),
Bank statements showing your salary going in, and
A letter from your boss or your tax assessment notice, in some cases.

Overtime or bonuses may need more proof to show they are consistent.

If You’re Self-Employed

Lenders typically want to see:

Business and personal tax returns for the last two years,
Notices of Assessment from the ATO,
Business bank statements or a letter from your accountant, in some cases, and
Your ABN details.

Other Income

Got rental income, investments, or regular government payments? Lenders may also consider these, but you’ll need proof, like:

Lease agreements,
Investment statements,
or Centrelink letters.

Use this table to quickly go through the income verification requirements.

Document Type	Needed for PAYG?	Needed for Self-Employed?	Why?
Recent Payslips	Yes (2-3 months)	No	Shows current salary
Tax Returns (Personal & Business)	Sometimes	Yes (2 years typical)	Shows overall/business income over time
Notices of Assessment (ATO)	Sometimes	Yes (2 years typical)	Confirms taxed income
Bank Statements (Salary/Business)	Maybe	Maybe	Shows actual income received
Lease Agreements/Investment Statements	If applicable	If applicable	Proof of other income

Note: Requirements vary between lenders.

👉 Check out Documents Required for Refinancing in Australia for the full details.

3. Credit Score and History

Lenders use your credit score to gauge how likely you are to repay the new loan. Lenders generally prefer scores in the ‘Good’ to ‘Excellent’ range.

For example, here’s the credit score range of Equifax:

Excellent: 853-1200
Very Good: 735-852
Good: 661-734
Average: 460-660
Below Average: 0-459

You improve your score by paying bills on time, managing credit well for a long period, and not applying for credit too many times too quickly.

Check your credit report before applying. Get your copy so you can look for errors and fix them. This helps boost your eligibility for refinancing.

4. Australian Residency and Age Requirements

Lenders also do two basic checks initially: age and residency.

First, you generally need to be 18 or older. Second, most lenders prefer Australian citizens or permanent residents living in Australia.

Things get trickier if you’re on a temporary visa or living overseas. Sometimes, even specific permanent resident visas can face extra checks.

We discuss these special cases in the following section.

👉 You can also consider Repricing vs Refinancing Your Mortgage in Australia.

AU Expats—Struggling to Meet These Requirements?

Special Cases: Refinancing for Temporary Residents, Expats & More

You can refinance despite less than 20% equity, temporary or overseas residency, or owning property through a trust or company. It’s tough, though.

Requirements are tighter as these involve extra risk for the lender. You may face higher rates, need more documentation, or have fewer loan products.

Some situations also involve legal or tax implications, especially for non-residents or those with complex ownership structures.

Let’s explore each scenario in more detail so you know what you’re getting into if you’re in that situation.

1. Refinancing with Less Than 20% Equity

Am I eligible for refinancing at 90% or 95% LVR? Yes. A few lenders can consider 10% or even just 5% equity.

The catch is that you’ll almost certainly have to pay costly LMI. Lenders may also charge you a higher interest rate because it’s riskier for them.

You really need to weigh the cost of LMI against the potential savings from a lower interest rate. Sometimes, it’s just not worth it.

2. Refinance Eligibility for Non-Residents and Aussie Expats Overseas

Living overseas or here on a temporary visa? Refinancing can be tough.

Temporary Residents

It’s harder, but possible if you hold certain long-term temporary visas (like some skilled work or partner visas).

Lenders have lists of acceptable visas. You’ll likely need approval from the Foreign Investment Review Board (FIRB) for the original property purchase, and lenders will check this.

Expect lower LVR limits, potentially higher interest rates, and maybe foreign buyer stamp duty.

Non-Residents & Expats

Fewer lenders are keen, and rules are tight. It can be harder than getting the first loan, as lenders usually require you to have 20-30% equity.

Proving foreign income involves many documents (contracts, payslips, tax returns from overseas).

Lenders often discount foreign income due to exchange rate risks, and income from certain countries may not be accepted. Self-employed income is particularly difficult.

Foreigners also need FIRB approval to buy most types of property. Aussie expats don’t need this, but lenders can still have strict rules due to the issue of foreign income.

You may need credit reports from your country of residence, face shorter loan terms, or need someone in Australia to act for you. Tax rules are different, too.

Getting help from a broker who specialises in expat loans, such as Odin Mortgage, is recommended.

Here’s a quick comparison.

Criteria	Aussie Citizen / Permanent Resident	Temporary Resident	Non-Resident / Expat
Typical Max LVR	Up to 95% (LMI likely >80%)	Often 80-90%	Often 70-80%
Income Proof	Standard Aussie documents	Standard + Visa, maybe stricter	Complex foreign documents, often discounted
FIRB Rules	None	Purchase needs approval/compliance	Purchase needs approval/compliance
Lender Choice	Wide	Limited	Few

Note: Always check specific lender criteria.

3. Refinancing Through a Company or Trust Structure

Refinancing a property held in a company or trust name isn’t standard practice for many online or simple loan applications.

Some lenders just don’t offer certain products for company or trust borrowers.

You’ll likely need to talk directly to lenders or specialist mortgage brokers who handle these more complex structures. Be prepared for potentially different criteria and more paperwork.

👉 If you want to learn about the actual refinancing process and everything that’s involved, look at How to Refinance a Home Loan in Australia.

Beyond the Basics: Other Factors Lenders Assess

Lenders also assess other factors beyond equity, income, and credit score. This includes your living expenses, property details, and supporting documents.

Lenders want a full picture of how you manage money day-to-day. That includes reviewing your debts, spending habits, property type, and even location.

Certain areas or property types may be considered higher risk, and missing or unclear documents can delay or derail your application.

Preparing properly helps you understand what lenders are really looking at. Let’s look at each of these factors before diving into how you can improve your eligibility.

1. How Your Living Expenses Impact Eligibility

Lenders want to know where your money goes each month. High debts or big spending habits reduce how much you can comfortably borrow.

List your assets (savings, investments, cars) and all your liabilities (other loans, credit card limits – not just balances).

Estimate your monthly living costs (groceries, bills, transport, fun stuff). Lenders often check this against your bank statements.

Tip: Reducing your credit card limits before applying can help, as lenders assess based on the full limit you could spend.

2. The Role of Property Type and Location

Not all properties are treated equally. This can majorly affect your eligibility for refinancing.

Lenders generally prefer refinancing standard houses, townhouses, or apartments. Land or properties under construction might need specialist lenders.

Some lenders prefer properties in capital cities or major towns. Others have postcode restrictions, limiting how much they lend in certain areas. High-density apartments can also face specific LVR limits.

3. Type of Refinance Application

Lenders also look at the type of refinancing you’re applying for. Not all refinances are treated the same.

For example, you’re paying extra money toward your loan in a cash in refinance. This lowers your balance, which can lower your risk to the lender. It may help you qualify more easily or get better rates.

On the other hand, you’re rolling other debts like credit cards in a debt consolidation refinance. This can make monthly payments more manageable. But lenders will check that you’re not just shifting debt around. They want to see you’re using the refinance to get on top of your money.

The reason behind your refinance tells lenders a lot about your goals and financial habits.

👉 Learn more about the Types of Refinance in Australia.

4. Documents Required

Aside from proof of stable income and employment, you must provide other supporting documents. It’s similar to when you first got your loan.

Having everything ready makes things smoother. Below, we quickly run through everything you need to provide.

Personal Identification & Details

A driver’s licence or passport.
Maybe Medicare card or a birth certificate.
Full name, date of birth, address, contact info, relationship status and number of dependents.

Proof of Income & Employment

PAYG — Recent payslips, bank statements, tax documents, and an employer letter.
For self-employed — Tax returns (usually 2 years), ATO assessments, maybe business financials/bank statements, and a letter from your accountant.
For other income — Lease agreements, investment statements, Centrelink details, etc.

Statements for Assets & Liabilities

Assets — Bank account statements, investment statements, super statements.
Liabilities — Statements for your current mortgage, other loans, and all credit/store cards (showing the limits).

Existing Home Loan Information Details

Usually, the last 6 months of statements for the loan you’re refinancing, showing balance and repayments. Comprehensive Credit Reporting (CCR) may reduce the need for this with some lenders.
Property Details — Address, maybe a council rates notice. The new lender will organise their own valuation.

👉 More resources to help you:

Am I Eligible for Refinancing? Steps to Improve Your Eligibility

Not sure if you qualify for refinancing? You can boost your chances by building more equity, improving your credit score, tidying up finances, and more.

Eligibility isn’t fixed. Even if you fall short on equity, income, or credit score, a few smart moves can make a real difference.

Follow the steps below to improve your refinance eligibility:

Pay extra off your current loan if you can, or wait and hope property values rise.
Pay all bills on time, every time. Reduce debts, especially credit cards. Check your credit report for errors and fix them. Avoid applying for new credit unless necessary.
Boost your savings, cut back on unnecessary spending, and lower those credit card limits.
Maintain stable employment if possible, and get your income proof organised.
Honestly assess your equity, income, credit, and documents against the typical requirements.
Use online calculators to estimate savings, borrowing power, or repayments. Remember, these are just estimates – the lender’s final assessment is what counts.

👉 If you’re waiting to improve your chances, you can also check out How to Lower Your Mortgage Payment without Refinancing.

AU Expats—Still Unsure If You Qualify?

Key Takeaways

Am I eligible for refinancing? You need at least 20% home equity, stable income, a good credit score, and Australian residency to qualify for refinancing in Australia. ⬆️
Refinancing is possible for those with low equity or non-resident status, but often comes with higher costs, tighter rules, and fewer lender options. ⬆️
Lenders also consider your spending habits, property type/location, and full documentation when evaluating refinance eligibility. ⬆️
Improve your odds by increasing equity, maintaining a strong credit profile, cutting debt, and staying financially stable. ⬆️

Am I Eligible for Refinancing?