Bank Property Valuation: Process and Next Steps

A bank valuation of property gives the lender evidence of the property’s value for its home-loan assessment. The lender decides which evidence it accepts and how that value affects the proposed loan. A lower accepted value can increase the loan-to-value ratio (LVR) or require a larger client contribution.

For a broker, the next step is to identify the accepted figure, check the property evidence and recalculate the funding position. A valuation review and a lending reassessment are separate tasks. Correcting a report doesn’t itself establish that the borrower or property meets the lender’s other requirements.

How a Bank Values the Property

The lender sets the valuation requirements, while property data or a professional valuer supplies the evidence used to assess value. A bank valuation can involve an automated estimate, an offsite assessment or an inspection. The method depends on the lender’s requirements for that property and application.

Assessment	Who or what produces it	What the broker needs to understand
Automated valuation model (AVM)	A model estimates value from property and sales data	Check the property details and whether the lender accepts the result for this application
Desktop assessment	A qualified valuer assesses available evidence without a site visit	The result depends on the records and imagery available to the valuer
Physical inspection	A valuer attends the property and assesses it alongside market evidence	Access, actual condition and improvements can affect the assessment

Cotality’s digital valuation descriptions distinguish automated estimates from desktop assessments completed offsite by qualified valuers. A desktop assessment therefore doesn’t mean the result was generated entirely by a computer. An inspection gives the valuer direct access to property features, but it doesn’t promise a higher figure.

Macquarie’s 10 September 2026 credit guidelines show how lender requirements control the choice. Property Hub inputs determine whether the evidence is a full valuation, desktop assessment, AVM or contract of sale. All valuations must be assigned to Macquarie, and applications above 80% LVR require a full valuation.

Get or Check the Lender’s Valuation

Start with the lender’s application or authorised broker channel to obtain the valuation used for lending. Keep the property address, contract and access contact details consistent with the loan file. A publicly available property estimate doesn’t establish the value accepted by the credit assessor.

The following lender examples apply as at October 2026.

• ANZ’s standard home-loan guidance says the lender arranges its valuation, even when the applicant already has one. Its Property Profile Report gives estimates and sales information, which don’t replace the lending valuation.
• ANZ Plus has a separate process. Its valuation help page says a property value can appear during an application when available. Otherwise, ANZ Plus contacts the applicant to arrange a valuation after submission.
• Westpac’s broker guide permits upfront valuation orders through Property Hub before originating an application, subject to policy conditions. This is a broker ordering route.
• Commonwealth Bank of Australia (CommBank) describes CommVal as providing instant property valuation outcomes in its home-loan guide. The same guide lists free property reports separately. Use the outcome attached to the application when checking the lending position.
• Bank of China Australia’s home-loan page lists residential mortgage security and the enquiry number 1800 095 566. Contact the bank’s lending team with the application reference to request the accepted value and its valuation instructions for that property.

Checking a bank valuation online means accessing the outcome through the lender’s authorised process. An online estimate can help identify a discrepancy, but it doesn’t change the application value. Access to a value also doesn’t automatically include access to the complete report.

Westpac’s May 2023 copy-of-valuations notice documents requested copies for borrowers and guarantors. It says only Westpac or its mortgage insurer can rely on that valuation. A client who needs a report for their own reliance must instruct an independent valuer for that purpose.

Read the Valuation Outcome

Read the lender’s accepted security value alongside the purchase price and report conditions before calculating the loan position. Each figure has a different job.

Item	Meaning	Effect on the application
Purchase price	The amount agreed with the seller	Determines the purchase funds required, subject to the transaction terms
Market value assessment	An opinion or estimate of value at a stated date	Supplies valuation evidence, with its assumptions and method
Accepted security value	The value the lender uses in its assessment	Determines the denominator in the lending LVR calculation
Report conditions	Assumptions or requirements attached to the assessment	Can require more evidence, repairs or further assessment before the lender accepts the security

A bank valuation and market value aren’t necessarily competing concepts. The report can assess market value, while the lender applies its security and lending rules to the result. The contract price, a sales appraisal and an online estimate can differ from that accepted value.

Check whether the report values the property in its current condition or assumes completed works. Read any repair requirement or property risk comment alongside the figure. A sufficient value doesn’t resolve an unacceptable security type, as the home-loan security guide explains.

A Fictional Valuation Shortfall

Assume a client agrees to buy a home for $800,000 and proposes a $640,000 loan. The client’s planned contribution towards the price is $160,000, with purchase costs funded separately. At an $800,000 accepted value, the proposed LVR is 80%.

Now assume the lender accepts $750,000 and the chosen loan structure remains limited to 80% LVR. The same $640,000 request becomes an LVR of about 85.33%. Keeping the loan at 80% of $750,000 reduces it to $600,000.

Funding item	Original assumption	Lower accepted value
Purchase price	$800,000	$800,000
Accepted value	$800,000	$750,000
Loan at the assumed 80% limit	$640,000	$600,000
Client contribution towards the price	$160,000	$200,000
Extra contribution required	$0	$40,000

The $50,000 valuation difference creates a $40,000 loan shortfall under these assumptions. The client still needs purchase costs in addition to the $200,000 contribution. This fictional calculation assumes no capitalised fees and doesn’t establish approval or an 80% limit for every lender.

Use the maximum LVR guide to assess the applicable loan and security limits. If a higher-LVR structure is available, compare its costs and requirements before treating it as a solution.

Check Evidence and Errors

Check the underlying property and transaction facts before disputing the value. A factual error needs a correction supported by records. Disagreement with the valuer’s interpretation of comparable sales needs a reasoned explanation of the differences.

Work through the file in this order.

1. Match the street address and unit number to the contract and title details. Check that the assessment covers the same land, dwelling and included parking or storage rights.
2. Reconcile the property description with plans and current evidence. Identify an incorrect land area, missing room or completed improvement that the available records don’t show.
3. Read the valuation date and assumptions. Explain any works completed after the imagery or inspection date, without assuming their cost adds the same amount to value.
4. Check the comparable sales. Record each address, sale date and verified price, then explain differences in land area, condition or location.
5. Reconcile the transaction terms. Include rebates, incentives, related-party arrangements and any differences between the contract and the application.
6. Separate confirmed errors from judgement questions. Send the evidence that supports each proposed correction and explain what remains disputed.

For example, a report describing one parking space when the title grants two identifies a factual discrepancy. Preferring a nearby sale because its price is higher requires evidence that the property is genuinely comparable. An asking price alone doesn’t establish a completed sale.

Keep the original report or outcome, the correction evidence and the lender’s response together. Record the report reference and the passage or property field affected. This gives the assessor a specific issue to resolve instead of a request to achieve the borrower’s preferred number.

Respond to a Low Bank Valuation

Use the currently accepted value to assess a workable loan structure while resolving any supported valuation errors. Keep the funding calculation current while any review is underway. Don’t rely on an unconfirmed increase to meet the client’s finance deadline.

Supply Evidence Through the Correct Instruction

For an order still in progress, Cotality’s supporting-document instructions specify My Orders, then Edit and Documents. Use that route for an eligible Property Hub order. It documents supplementation during the order, rather than a completed-report appeal.

Once the lender has accepted a completed valuation, send the correction evidence through its application assessment contact. Identify whether you seek a factual correction, reconsideration of comparable evidence or a fresh instruction. The lender must authorise the applicable review or new valuation process before you commission anything intended for its reliance.

Macquarie’s 10 September 2026 guidelines give specific circumstances for further valuation evidence. Higher-risk applications can require another valuation, and an older valuation can require replacement under its age rules. These requirements don’t give a borrower a general right to obtain a second result or choose the figure the bank uses.

For a completed Macquarie file that needs further consideration, its guidelines direct broker questions to the business development manager (BDM). Supply the report reference and correction evidence with that enquiry. Keep a request for review separate from confirmation that a fresh valuation has been authorised.

Compare the Funding Options

Record the effect of each available option on the client’s contribution and repayment capacity.

• Reduce the requested loan and show the extra funds needed, including purchase costs.
• Use additional client funds only after confirming their source and the cash the client needs to retain.
• Assess a higher-LVR loan where policy permits it, including any lenders mortgage insurance (LMI), fees and changed repayments.
• Consider different security only after explaining the risks to every affected owner or guarantor.
• Consider another lender against the client’s needs, repayment capacity and security requirements. A new lender makes its own assessment and can accept the same or a lower value.
• If the purchase no longer has a workable funding path, involve the client’s conveyancer or solicitor before a contractual deadline passes.

Document the revised suitability assessment and why the chosen option meets the client’s needs. A higher accepted value alone doesn’t establish that the replacement loan is appropriate. Keep the valuation outcome, revised funds-to-complete calculation and loan recommendation consistent.

Prepare the Client Update

Tell the client the value the lender accepts, its effect on their funds and what action is currently available. Identify any unresolved factual issue without attributing fault to the valuer. Give the next update date and flag a finance or settlement deadline that the client must address with their legal adviser.

For the fictional purchase above, a useful update would read as follows.

The lender currently accepts a property value of $750,000. At the assumed 80% limit, the proposed loan falls from $640,000 to $600,000. That increases your contribution towards the $800,000 price from $160,000 to $200,000, plus purchase costs.

We’re checking the property details against the valuation outcome and the supporting records. Any review depends on the lender’s process, and the value can remain unchanged. We’ll compare the available funding options with you before recommending a change.

Before sending the update, confirm that the quoted value is the lender’s accepted figure and the contribution calculation includes every known cost. Record the client decision, the owner of each outstanding action and the next deadline. The file must remain workable at the currently accepted value until the lender confirms a different outcome.