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Navigating Mortgage Valuations: The Game-Changer in Home Financing

Navigating Mortgage Valuations: The Game-Changer in Home Financing

In the ever-evolving landscape of home loans, one critical aspect of the mortgage process that is often overlooked is the property valuation process. 

As highlighted in a recent Australian Financial Review article, discrepancies in home valuations can vary drastically—sometimes by as much as $100,000 on properties valued around $800,000.

This stage alone in a multi-stage process can affect multiple aspects of your lending, from your loan-to-value ratio (LVR) and even whether you  need to pay Lenders Mortgage Insurance (LMI).

What is a Bank valuation?

A property valuation will provide the estimated amount for which the property would be expected to exchange between a buyer and a seller. When calculating the value of a property, there are a few things banks take into consideration, including: location. council zoning, planning and restrictions.

Why does this matter? 

These variances can significantly impact your interest rates and potentially lump you paying thousands in LMI. This isn’t just about numbers; it’s about fairness and the ability to secure a deal that favors your financial health, not just the bank's bottom line.

The difference between banks can be stark. While one might assess your property at $800,000, another could value it at $700,000, altering your LVR ratio and influencing the necessity for LMI, not to mention altering repayment amounts.

This is where the value of a knowledgeable mortgage advice team comes into play. A skilled mortgage advice firm doesn’t just find you a home loan; they understand the intricacies of your lending requirement, moreso, your property valuations, and navigate these with your best interests at heart. They fight the "game" that’s rigged in favor of the banks by ensuring you’re positioned to receive the most favorable evaluation.

The path to securing the best mortgage isn’t just about signing on the dotted line. It’s about proactive management and strategic planning ensuring your professional team works on your side and ensuring the banks don't dictate your financial future. 

Work with a team that ensures a structured and strict valuation process that benefits you. Let’s talk about how strategic advice can change the game for you. Talk to our industry leading, multi-award winning Lending Advisory team today on 1300 001 215.