Finance Valuations

Finance valuations for banks are almost always ordered by the bank from a panel of valuers who are accredited with them.  AHV does not undertake valuations for any lenders; we specialise in non-mortgage valuation work.

More valuations are done for finance than all other purposes combined (excluding mass valuations for Government rating purposes). When a bank lends money to someone to buy real estate then the loan is normally secured against the property by way of a mortgage. Before the bank will lend against real estate it will first need to know the value of the property, and will only lend a portion of that value – typically around 90% for residential property and 70% for commercial or rural properties. The actual percentage lent (the loan to value ratio or LVR) may vary with the age and condition of the property, and its location – properties in areas with a shortage of buyers and long selling periods (such as a small country town) may have a lower LVR.

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