What does the term Valuation mean?

Valuation refers to the value of your property and the process of acquiring one, usually for the purposes of a home loan transaction. The valuation process can be undertaken a number of different ways but usually it is done by a valuer that the bank has on a panel of approved valuers. They may come out to your home to complete the valuation or in some cases may simply review data about the property from their office, this is known as a desktop valuation.

Why is valuation important?

The bank will use the valuation process to return a value for the property that they accept as the true value of the property. This impacts a whole range of factors in the process including

  • The price/rate you pay, as the value will impact the LVR (loan to value ratio)
  • Whether you pay LMI (lenders mortgage insurance) and how much it is
  • How much equity you have available to use if you’re trying to take money out

Learn more about valuation

If you want to better understand the term valuation or anything home loan related then the UNO Customer Care team can help, book in a time to chat using the link below

Further reading about home loan and property topics

Getting more educated on home loans and key topics within the property buying and ownership journey makes a lot of sense. We have created this set of guides to address the main topics that UNO customers typically want to learn more about

Guide to buying your first home

Guide to buying your next home

Guide on buying an investment property

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