We have recently had our home valued to release equity in the property with our current lender. Unfortunately, the valuation came in so much lower than what we believed would be a conservative valuation. In fact, it almost feels like a joke, or a mistake, so our next thoughts were: should we take our business somewhere else?
Our current Mortgage Broker has told us that there would be no point in doing that as every lender would use the same valuation company, however, I am not convinced.While applying to release equity, we were told that we could also apply to fix the mortgage at the current rate, but now the Broker is advising us that we can't even do that….
I am new to all of this, but I do feel that some of the dots dont join up. Not only is it frustrating that we can not view the valuation, but then to be told we can't even fix our mortgage with the current lender?
Could someone please offer us advice on whether we should take this further or shop around for a new lender?
Thanks heaps!
ZoeHow much the difference in terms of valuation ?
ANZ will give a free valuation…through breakfree package
Get the broker that know about how to do a deal
Our broker told us to put down $500k but we only expected between $450-$480k. The valuation came in at $400k….. the average median sold price in our area is $585k for houses, and $410 for units.
Houses of the same quality and standard, but on a smaller block (by at least 300m2), are selling for at least $450k.Does that sound right to you?
Thanks for the info on ANZ. Will look into it!
ZHi Zoe
I am assuming you are looking to refinance in order to release some equity.
Hate to say your Broker is incorrect and not every lender uses the same valuer.
Admitedly depending on where the security is located you might find the options limited however without more information it is difficult to comment.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hi Zoe
Ask your broker about carrying out an external refinance to a lender that allows for valuations to be ordered before an application is submitted. That way, there’s no immediate hit to your credit record and you’ll only need to proceed if the valuation comes in at the desired amount. Someone mentioned ANZ above – they are a lender that does this.
Keep in mind that there are costs involved with refinancing to another lender. Your broker should be able to outline these for you.
As Richard said though, if the property is located in a smallish place then the number of valuers may be limited and therefore your chances of having the same valuer assigned to the job is high.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
You could approach another valuer and order one yourself. Before this ask him which lenders he can value for and make sure one of the lenders is one you could use. If it comes in good you can get the valuation reassigned to the lender.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
It sounds like your broker have never fought or argued a valuation before…it’s not common but if the difference is large and you have proof of comparative sales in the last 3 month…then your broker can request with the valuer to revalue the price.
Going to a different lender may help, but make sure you order Val first before you do a credit check with the new lender ( this will save on the amount of credit inquires you could potential build up)
If you want flick us the address and i can do a bit of search on comparative sales for you.
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
HI,
I don't see too much of an issue – in that IF you can provide examples of higher sales prices for similar properties, they will consider this & possibly review. Bear in mind valuers compare block size, bedrooms, street appeal, condition, and Sale – not For Sale – price.
I have seen recent examples come in lower than rates notice CIV values based on comparative sales nearby.
You mention 'are selling' but have the others you mention actually sold? The last 3 mths in particular, I have seen a lot of vals come in lower than owners think they are worth. My favourite was an 'off the plan' holiday unit purchased a couple of years back for $765k plus, now valued at just over $400k. Better stuff sold for low 4's.Cheers
I suggest getting your own valuation done they are only $250 – $500 or seeing a real estate agent for a 3 month report of RP data.
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