Bank Valuation

The lender's independent valuation of the property — often lower than your purchase price.

A bank valuation is a property valuation commissioned by the lender (not the buyer) to confirm the property's value as security for the mortgage. Bank valuations are typically conservative — often 5–10% below the agreed purchase price — because the lender's focus is forced-sale value. A low bank valuation can shrink your loan, requiring a bigger deposit at settlement. The buyer rarely sees the actual valuation report.