No valuation before approval: how your property is assessed instead

Why formal valuations slow things down

In traditional property lending, a lender orders a formal valuation before approving a loan. A valuer is booked, inspects the property, researches sales and writes a report. Depending on demand and the property type, that can take days or weeks, and the borrower often pays for it whether or not the loan proceeds. For a business facing a settlement date, a tax deadline or a creditor’s demand, that delay can be the difference between solving the problem and missing the window.

Short-term secured lenders often take a different approach. No valuation is needed before approval. The lender forms its own view of value from available evidence and makes a decision on that basis.

What evidence is used instead

Comparable sales. Recent sales of similar properties in the same area are the core of any assessment. Lenders look at property type, size, condition, location and timing.

Title searches. A search of the land titles register confirms ownership, existing mortgages, caveats, easements and other interests. See our guide on title searches.

Photos and descriptions. Current photos, floor plans and a description of the property’s condition help the lender understand what it is assessing.

Leases and income. For commercial property, the lease schedule and rent help establish value and saleability.

Planning information. For land and development property, zoning and approvals drive value.

Your own evidence. Agent appraisals, recent valuations, rates notices and details of improvements can all be submitted.

Why this approach makes sense for short-term loans

Short-term secured loans are usually sized conservatively relative to value and repaid by a defined exit within months. That combination means the lender’s decision is less sensitive to small differences in value than a long-term, high-LVR home loan would be. A careful evidence-based assessment gives enough confidence to proceed, and the time saved is valuable to the borrower. Our guide on how fast a secured loan can settle shows where that time goes.

How to get the fairest assessment

• Be realistic. Base your estimate on recent sales, not hopes or historical peaks.
• Provide comparable sales. If you know of similar properties that sold recently, share them.
• Send good photos. Show the property’s condition, including recent renovations.
• Explain improvements. New kitchens, extensions or refurbishments that may not appear in public records.
• Disclose issues. Known defects, flood history or disputes with neighbours. Surprises later undermine trust.
• Provide leases. For tenanted property, the lease terms are essential.

When the lender’s view differs from yours

Sometimes the lender’s view of value is lower than the owner’s. That usually happens when recent sales evidence does not support the owner’s figure, or when the property has features the market may not value as highly. If the difference matters to the loan amount, there are options: provide further evidence, add another property as security, prepay interest instead of capitalising it, or reduce the amount. The LVR calculator lets you test the effect quickly.

Have your property assessed without a valuation by starting a short enquiry.

Valuations later in the process

No valuation before approval does not mean a valuation will never be needed. Some deals, particularly larger loans or unusual properties, may involve a valuation later in the process. And if your exit is a bank refinance, the bank will almost certainly order its own valuation. Plan for that: the bank’s view of value will determine how much it lends, which affects whether the refinance repays the private loan in full.

Illustrative example

Illustrative only. A company needs funds within the week to clear an ATO debt before a director penalty takes effect. The director’s home in a well-established suburb has a small mortgage. The lender reviews recent sales of similar homes on nearby streets, searches the title and looks at photos the director sends. Within a day it confirms that the combined LVR sits comfortably within its limits, and the loan proceeds without a valuation. Funds reach the ATO before the deadline.

Property types where evidence is thinner

For mainstream homes in established suburbs, comparable sales are plentiful. For rural land, specialised commercial property or unusual homes, evidence can be thin. In those cases lenders may take a more conservative view, ask for more information or suggest additional security. Our guides on specialised property and regional property explain why.

Costs you avoid

Because no valuation is required before approval, you do not pay for a report just to find out whether a loan is possible. Every cost that does apply, such as establishment fees, legal costs and interest, is set out in writing before you commit.

How lenders read comparable sales

Not every nearby sale is a good comparison. Lenders weigh sales by how similar they are: same property type, similar land and building size, similar condition, close location and recent timing. A renovated four-bedroom home on a quiet street is not a fair comparison for an original two-bedroom cottage on a main road, even if they are a few doors apart. Lenders also look at the direction of the market: whether recent sales show prices rising, flat or easing, and how long similar properties have taken to sell. When you send comparable sales, choose the ones that genuinely resemble your property rather than the highest prices in the area. Credible comparisons carry more weight than optimistic ones.

Commercial property without a valuation

For commercial property, value depends heavily on income and lease terms. A lender assessing a tenanted shop or office will look at the rent, the remaining lease term, the tenant’s business, rent review provisions and how similar properties have sold relative to their income. Vacant commercial property is assessed on what a buyer would pay with vacant possession, which may be lower than an income-based figure. Providing a full lease schedule, recent rent statements and any agent leasing advice helps the lender form a well-grounded view quickly, without a formal report.

What happens if new information emerges

Sometimes information comes to light after an initial assessment: a building defect, a planning restriction, an encumbrance on title. The lender will reconsider the assessment in light of it. That is another reason to disclose everything you know at the start. Information shared early can be factored into the structure; information found late can delay or change the deal.

A faster, fairer start

Evidence-based assessment gives business owners a quick, practical answer. Share the property address, your estimate of value with any supporting sales, what is owed and the purpose of the loan. There is no credit check when you first enquire, your details stay with our team, and realistic, well-supported figures help us confirm the loan quickly. Start your enquiry.