There are three ways a bank or lender determines the value of your property when you refinance:
1. Desktop valuation: A desktop valuation is an automated computer valuation using property data, recent comparable sales and property listings.
2. Kerbside valuation: This is mostly used for low-risk loans; a valuer inspects the property's exterior from the street and does not enter the premises.
3. Full valuation: A certified valuer visits your property to carry out a full valuation.
Some lenders can do an automated online valuation if you meet the requirements. This is relatively fast and is often available if you borrow less than 80% of the property value. However, the requirements vary among lenders.
Our brokers can do a free upfront valuation with many of our lenders.. A real-estate agent’s appraisal or one from a valuation company that you order yourself will not be accepted by lenders. They have their own requirements for valuations and a strict process to follow.