Quick answer
For a private, caveat or second-mortgage loan, we order an independent valuation of the property as it stands today. That figure, not an online estimate or your council rates value, sets how much can be lent. Metro houses are usually the quickest to value; commercial, rural and unusual properties take longer. Easy access, the lease and details of any recent works keep the valuation on schedule.
Key points
- We order the valuation from an independent valuer; it's the number the loan is sized on.
- Council and land tax valuations measure something different and are rarely the figure a lender uses.
- Valuers look at comparable sales, condition, approvals, zoning and — for commercial — the lease.
- Access is the most common cause of delay; have a contact ready to open the property.
- The valuation is often the longest step in a fast short-term loan, so start it early.
- Ordered by
- Us, as lender
- Value used
- Market value today
- Biggest delay
- Access to the property
On a fast short-term loan, the paperwork can be signed in an afternoon and the security lodged electronically in minutes. The step that most often sets the pace is the valuation. Knowing what the valuer is there to do — and what slows them down — is one of the easiest ways to keep a deal on the clock.
Why does a short-term lender need its own valuation?
Because the loan is sized on equity, and equity depends on value. ASIC’s Moneysmart defines loan-to-value ratio as the loan divided by the value of the asset; every number in a short-term property loan flows from that denominator. Our page on how equity is calculated shows the full arithmetic.
We order the valuation from an independent valuer and rely on it, which is why it has to be fresh, addressed to us and based on an inspection of the property as it stands today. It doesn’t matter whether the loan is a caveat loan on Victorian property, a registered second mortgage in another state, or a first mortgage over a clear title — the valuation does the same job in each.
It also protects you. A short-term loan sized on an inflated figure is a loan that may not be repayable from a sale or refinance when the time comes. A sound valuation keeps the plan honest: if the numbers work on the valuer’s figure, the exit is far more likely to work too.
Why is the lender’s figure different from my rates notice?
Rating valuations measure something else, for a different purpose:
| Value | Who produces it | What it measures |
|---|---|---|
| Victorian site value | Valuer-General Victoria, annually since 1 July 2018 | The land only, assumed vacant with no buildings |
| Victorian capital improved value | Valuer-General Victoria | Assessed market value of land plus improvements, for rating purposes |
| NSW land value | NSW Valuer General | The market value of the land only — not the buildings or improvements |
| Online estimate | Property data websites | An automated guess from sales data, with no inspection |
| Our valuation | Independent valuer instructed by us | What the property would sell for now, after inspection |
The NSW Government is explicit that land value “does not include the value of buildings on your land or improvements made on the property”, and that it is supplied to councils at least once every three years. In Victoria, valuations are made every year for rates and land tax. Both are mass assessments built for taxation, not lending. Treat them as a rough sense-check at most.
What does the valuer look at?
For a house or unit:
- comparable sales — recent, nearby, similar properties;
- land — size, shape, slope, frontage, zoning and overlays;
- improvements — the home’s size, layout, age and condition;
- approvals — whether extensions, granny flats or conversions were permitted;
- saleability — how easily it would sell to an ordinary buyer in today’s market.
For commercial and industrial property, add the lease, the rent, outgoings and who the likely buyer is. Our guide on what the valuer checks on commercial property covers that side in detail.
What slows a valuation down?
| Delay | How to avoid it |
|---|---|
| Nobody available to give access | Name a contact with keys and their mobile in your enquiry |
| Tenants not given notice | Warn tenants early and follow the notice terms in their lease |
| Remote or rural location | Expect fewer valuers and more travel; flag it on day one |
| Unusual or specialised building | Tell us the property type upfront so the right valuer is booked |
| Missing information | Have the lease, plans and a list of recent works ready |
| Unapproved works | Be upfront — the valuer will spot them anyway |
A straightforward house in a metro area is usually the quickest to value. Specialised commercial property and large rural holdings take the longest. Where speed matters most — say you’re chasing a same-day result for $20k to $250k, or up to $5m within 24–48 hours — the valuation is the first thing to get moving. See how fast private lenders settle for the rest of the timeline.
Want the valuation started on the right foot? Tell us about the property and who can give access, and we’ll take it from there.
A worked example: when the valuation came in under the estimate
Illustrative only — round numbers, no real people.
A Gold Coast builder needs $220,000 within the week to pay subcontractors while a delayed progress claim is resolved. He estimates his house at $1.2 million from an online tool, with $600,000 owing to the bank.
The valuer inspects the next morning. The house is in good order, but a rear deck and enclosed patio were built without approval, and two comparable sales nearby were lower than the online estimate assumed. The valuation comes back at $1.05 million.
Rather than abandoning the deal, the loan is right-sized. The builder’s investment unit in Southport is added as extra security under a second registered mortgage, the combined lending across both properties sits comfortably, and the full $220,000 is advanced. Because Queensland property is involved, both securities are registered second mortgages, not caveats. The loan is repaid when the progress claim is paid. Short-term loans like this are measured in months, not decades.
How can you help the valuation go well?
- Give the valuer easy access at a time that suits them, not just you.
- Have plans, permits and a list of recent works with approximate costs.
- For leased property, supply the lease and rent details.
- Tidy up — condition is part of the assessment.
- Don’t oversell. Valuers rely on evidence; a list of genuine improvements helps more than a sales pitch.
Ready to get the valuation moving? See if you qualify
Valuation is where fast deals are won or lost, and the quickest way through is to start early with the right information.
The enquiry takes about a minute, there’s no credit check when you first enquire, and we don’t distribute your details to a string of lenders. A real person reads what you’ve told us and calls you. Please describe the property accurately — type, condition, any unapproved works, the state it’s in — and give us your real deadline, so we can book the right valuer the first time.
Frequently asked questions
Can I use my own recent valuation?
Sometimes a recent valuation addressed to us, from a valuer we accept, can be used or updated. A bank valuation for another lender, or an agent's appraisal, usually can't. Mention any existing report in your enquiry.
Why is the lender's valuation lower than my council rates notice?
They measure different things on different dates. Rating valuations are mass statutory assessments; our valuation is a fresh inspection of what the property would sell for now. They can differ in either direction.
Does the valuer need to go inside?
For most short-term loans, yes. Plan for someone to provide access — including tenants, who may need notice under their lease.
Who pays for the valuation?
The borrower normally covers the valuation cost as part of the loan's set-up costs. We'll tell you the structure of costs before anything is ordered.
What if the valuation comes in lower than I expected?
The loan can often be resized, another property added as security, or the structure changed. A lower figure isn't automatically the end of the deal.