When you’re buying a home or refinancing your loan, we’ll often need to get a bank valuation. We need to know that we’re lending you the money responsibly.

Give me the main points

  • A bank valuation of your property allows us to use the property as security against the money we can loan you.
  • It’s the price a bank thinks it could get for your house if you defaulted on your loan and we had to sell your property to recover our losses.
  • Bank valuations protect both you and us. A bank valuation may not be the same as a real estate agent's appraisal.
  • Market value is an estimate of the price you might get if you or a real estate agent sold the house yourself, without any time limitations and or expenses spared with marketing.

What we use bank valuations for

When you want to buy a new property, refinance or access the equity in your home, we have to make sure we’re not lending you more than the value of the property.

We use it to determine the value of your property that will act as security against your home loan. It means that if you have difficulties with the loan and you’re no longer able to make the repayments, we may have to sell the property to pay back the loan.

We’ll only sell your home if you’re having serious trouble with the loan or you’re really behind with your mortgage repayments. If we have to sell your home quickly, it may be for a lower amount than what you’d ask for.

What we look for in a bank valuation

Sometimes, we may need to get access inside the property and at other times we can do a valuation from the street. Generally, we work out the value by looking at the home for details such as:

  • general location and council zoning
  • overall size and number of rooms
  • vehicle access to the property
  • building structure and condition.

Finding out the market value of your home

If you’re interested in getting an idea about the market value of your property you can access reports from NAB Property Insights. You can also use a valuation service or ask a real estate agent to give you an estimate. Remember though – it’s not an exact science and the market value is just a guide of what your property may be worth.

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