Valuation purposes
Property valuations for mortgages and refinancing
Your lender will order its own valuation, and its purpose is to protect the lender's security — not to tell you what your home is worth. An independent valuation tells you where you actually stand before you commit to an application.
What you need to know
How lenders decide which valuation to order
Lenders match the depth of the valuation to the risk of the loan, measured by the loan-to-value ratio. At low LVRs many will accept a desktop assessment or an automated estimate. In the middle band a kerbside inspection is common. Once the LVR passes 80 per cent, a full internal inspection is generally required.
That means the figure a bank works from at 60 per cent LVR may never have involved anyone looking at your property. It's fit for the bank's purpose. It isn't a considered opinion of what your home is worth.
Bank valuation versus independent valuation
A lender's valuation is prepared for the lender, for mortgage security purposes, and tends toward the conservative — the bank is asking what it could recover, not what a motivated buyer would pay. An independent valuation asks the second question.
The two can differ materially, and the gap is exactly what catches people out: an application priced on an optimistic assumption, then repriced when the bank's figure lands lower.
When your own valuation earns its fee
Not every refinance needs one. It's worth having in the situations where the bank's number decides something expensive.
- Testing whether you have crossed 80 per cent LVR and can stop paying lender’s mortgage insurance
- Deciding whether to challenge or walk away from a low bank valuation
- Before drawing down on a renovation, where value added is in dispute
- Refinancing several properties at once, where one weak figure affects the package
- Unusual properties — heritage, rural, large land holdings — where automated estimates are least reliable
What affects the figure
Comparable sales do most of the work, adjusted for land size, dwelling size, condition, position and improvements. Renovations count for what they add to market value, which is not always what they cost. Documentation helps: floor plans, building permits and renovation invoices all let the valuer allow for work that isn't obvious from an inspection.
Choosing a report
Desktop, curbside or full inspection?
Desktop
Efficient valuations based on market data analysis without physical inspection. Ideal for preliminary assessments and internal decision-making.
DetailsCurbside
Quick external inspections providing reliable market estimates. Perfect for lending purposes and portfolio reviews where detailed inspection isn't required.
DetailsFull inspection
Comprehensive internal and external property inspections with detailed market analysis. Ideal for legal matters, settlements and accurate market value assessments.
DetailsOther reasons people get a valuation
Got questions?
Frequently asked questions
Can I give my valuation to the bank instead of theirs?
Most lenders will only accept valuations from valuers on their own panel, so an independent report generally won't replace the bank's. What it does is tell you whether the bank's figure is out of step before you commit to an application, and give you something concrete to point at if you want it reviewed.
What is a kerbside valuation and when is it enough?
A kerbside valuation is an external inspection from the street combined with market analysis. It suits lending decisions and portfolio reviews where an internal inspection is not required, and it is the middle option between a desktop assessment and a full inspection.
How long is the valuation good for?
As a general guide, around 90 days. Lenders will usually want a current figure at the time of assessment.
Will renovations increase the valuation by what they cost?
Not necessarily. A valuation reflects what the market pays for the improved property, which can be more or less than the spend. Kitchens, bathrooms and additional bedrooms usually convert better than highly personal work.