📢 Thinking About Refinancing? Here’s Why Your Home’s Value Matters! 🏡💰
When refinancing a home loan, one of the most crucial steps is determining your property’s value. This value will act as collateral and directly influence how much you can borrow.
💡 Most lenders follow the 80% Loan-to-Value Ratio (LVR), meaning your loan amount will be based on 80% of your home’s current market value.
To establish your home’s value, a professional valuer will assess the property’s condition and use data to determine a fair market estimate. Your lender will also conduct its own valuation to validate the loan.
⚠️ Keep in mind that each lender’s valuation can differ based on their risk criteria. It’s common for these valuations to come in lower than real estate agent appraisals, which are often optimistic estimates based on what a buyer might pay in today’s market.
So, before you refinance, make sure you understand the difference between a valuer’s objective assessment and an agent’s sales-driven appraisal. Both play vital roles but serve different purposes!
📞 Ready to explore refinancing? Get a professional valuation and know where you stand in today’s market!
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