Everything You Need to Know About Refinancing Approval

Refinancing approval depends on current income verification, property valuation, and your existing loan performance.

For oncology pharmacists, the process typically moves faster than a purchase application because you already own the property and have a repayment history. Lenders assess whether you can service the new loan at current rates and whether the property still supports the amount you want to borrow. Most lenders will want to see recent payslips, tax returns if you do private consulting, and details of any other debts or commitments you've taken on since your original loan was approved.

The outcome hinges on three things: whether your income has remained stable or improved, whether your property value has held or increased, and whether your credit file shows consistent repayment behaviour. If all three align, approval usually takes between five and ten business days once the application is lodged.

What Lenders Verify During a Refinance Application

Lenders confirm your current income, employment status, and liabilities before they assess loan serviceability.

Consider an oncology pharmacist working full-time at a metropolitan hospital who wants to refinance to a lower rate. The lender will request recent payslips, an employment letter, and a current statement of your existing mortgage. If you've taken on additional commitments since your original loan was approved, such as a car loan or increased credit card limits, these will be factored into the serviceability calculation. Lenders also check your credit file for any missed payments, defaults, or new credit applications.

The property valuation is ordered early in the process. If the valuer assesses your property below the amount needed to support the new loan, you may need to reduce the loan amount or provide additional funds. This rarely causes issues for established properties in stable markets, but it can be a factor if you purchased in a new development that hasn't yet appreciated or if the local market has softened.

How Employment Type Affects Approval Timeframes

Permanent employees typically receive faster approval than contractors or locum pharmacists because lenders treat ongoing employment as lower risk.

If you're employed on a permanent contract, most lenders will accept two recent payslips and an employment verification letter. If you work as a locum or contractor, lenders usually require evidence of consistent work over the past 12 months, often through tax returns or a letter from your agency confirming ongoing assignments. Some lenders will accept contractor income without a full tax return if you can show at least six months of continuous work with the same agency or hospital network.

For oncology pharmacists who combine hospital work with private consulting, lenders assess each income stream separately. The hospital salary is treated as PAYG income, while consulting fees are assessed as self-employment income and may require at least one tax return to verify. If consulting income is a small portion of your overall earnings, some lenders will exclude it from the assessment and approve the loan based on your hospital salary alone, which can speed up the process.

What Happens if Your Property Value Has Changed

A lower valuation reduces your available equity, while a higher valuation can improve your loan-to-value ratio and open access to lower rates.

Property valuations are valid for 90 days in most cases, but some lenders may accept a valuation completed for another lender within the past three months. If your property has increased in value since you purchased, you may find you no longer need to pay lenders mortgage insurance on the new loan, even if you paid it originally. If the valuation comes in lower than expected, you can either reduce the loan amount, bring in additional funds to make up the shortfall, or seek a second valuation if you believe the first was inaccurate.

For properties in areas with fluctuating markets, lenders may apply a discount to the valuation when calculating the loan-to-value ratio. This is more common for apartments in oversupplied areas or properties in regional locations with limited sales data.

How Existing Loan Performance Influences the Decision

A clean repayment history on your current loan strengthens your application, while missed payments or redraw activity can raise questions.

Lenders review your mortgage account conduct for at least the past six months, sometimes longer. If your account shows consistent on-time payments and a steady reduction in the principal balance, it supports your application. If the account shows frequent redraw activity, late payments, or reliance on offset funds to meet repayments, lenders may ask for an explanation or apply additional scrutiny to your serviceability.

In one scenario, an oncology pharmacist refinancing after three years found their application delayed because the lender noticed multiple missed payments during a period of parental leave. Once they provided evidence that the leave was planned and their income had since returned to normal, the lender approved the loan without further issue. The delay added two weeks to the process, but the explanation resolved the concern.

When Refinancing to Access Equity Requires Additional Assessment

Releasing equity to purchase an investment property or fund renovations adds a layer of review because the lender needs to understand how the funds will be used.

If you're accessing equity for investment, the lender will assess your capacity to service both the increased loan on your existing property and any new loan you're taking out for the investment. This means providing details of the property you intend to purchase, including the expected rental income, purchase price, and deposit amount. If you're releasing equity for renovations, some lenders will want to see quotes or a scope of works to confirm the funds are being used to improve the property rather than for general spending.

For oncology pharmacists with strong income and a solid deposit already saved, this rarely causes issues. The lender simply needs to confirm that the total debt remains within your serviceability limits and that the loan-to-value ratio on your existing property doesn't exceed their policy thresholds.

How Long the Full Approval Process Takes

From application to settlement, most refinances take four to six weeks, though delays can occur if documentation is incomplete or the valuation takes longer than expected.

Once you submit your application, the lender typically issues conditional approval within five to ten business days. The conditions usually include a satisfactory valuation, final payslips, and confirmation that your existing loan discharge is in progress. Once all conditions are met, formal approval is issued and settlement is scheduled. Some lenders offer faster processing for straightforward applications, particularly if you're refinancing with the same lender or if the loan amount is below a certain threshold.

If you're coming off a fixed rate and want to avoid reverting to your lender's higher variable rate, it's worth starting the refinancing process at least six to eight weeks before your fixed period ends. You can lock in a new rate with a different lender up to 90 days in advance, which gives you time to compare options without rushing the application.

Call one of our team or book an appointment at a time that works for you. We'll review your current loan, confirm what documentation you'll need, and walk you through the approval process so you know exactly what to expect before you apply.

Frequently Asked Questions