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Valuation issues worsen

Bank demands for valuations are putting more pressure on advisers and clients as more deals require a valuation to get over the line.

Monday, August 2nd 2021, 6:40AM 1 Comment

Following a surge in house price growth in recent months, more home loan applications are falling into banks' "high value" category, requiring a valuation.

The demands are adding to a backlog of valuations, with valuers already struggling to cope during the market boom. 

Cities outside of Auckland are seeing more homes than ever included in the "high value" category. Homes in Tauranga are increasingly passing the $1 million mark, forcing buyers to get hold of a valuation before their loans can be rubber stamped. 

The need for valuations is causing headaches for clients, with most vendors opting for auctions in a sellers' market. 

Buyers are struggling to get the valuations they need on time in order to go unconditional with their offers. 

A host of mortgage brokers say valuation issues have become even more testing in recent weeks. 

Joel Oliver of SuperCity Mortgages said e-valuations were taking time to catch up to the market, and said banks had outdated luxury property price caps.

He said, "$2 million in Auckland is no longer luxury."

iLender's Jeff Royle (pictured) said valuations were "equally as bad" as overall turnaround times in the current climate.

Sarah Bloxham of Lets Talk Mortgages said valuers were a major problem affecting deals.

"We submitted a valuation on July 27 for a client for an auction on August 5, that’s eight working days notice, and there were no valuers available until August 9," she said.

Tags: Lending property valuers valuations

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Comments from our readers

On 3 August 2021 at 8:23 am JRR said:
If the Valuers don’t have capacity, do you really expect them to walk away from an existing job and disappoint that client. Maybe you expect the valuer to work 7 days in which case the money needs to justify giving up your life to solve the problem.

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Lender Flt 1yr 2yr 3yr
AIA 4.55 2.85 3.25 3.55
ANZ 4.44 3.20 3.59 4.00
ANZ Blueprint to Build 1.68 - - -
ANZ Special - 2.60 2.99 3.40
ASB Back My Build 1.79 - - -
ASB Bank 4.45 2.85 3.25 3.55
Basecorp Finance 5.49 - - -
Bluestone 3.49 3.34 2.99 3.34
BNZ - Classic - 2.85 3.25 3.55
BNZ - Mortgage One 5.15 - - -
BNZ - Rapid Repay 4.60 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Std, FlyBuys 4.55 3.45 3.85 4.15
BNZ - TotalMoney 4.55 - - -
CFML Loans 4.95 - - -
China Construction Bank 4.49 4.70 4.80 4.95
China Construction Bank Special - 2.65 2.65 2.80
Credit Union Auckland 5.95 - - -
Credit Union Baywide 5.65 3.95 3.85 -
Credit Union South 5.65 3.95 3.85 -
First Credit Union Special 5.85 2.95 3.45 -
Heartland Bank - Online 2.25 1.85 2.35 2.65
Heretaunga Building Society 4.99 3.80 3.90 -
Lender Flt 1yr 2yr 3yr
HSBC Premier 4.49 2.19 2.45 2.69
HSBC Premier LVR > 80% - - - -
HSBC Special - 2.25 - -
ICBC 3.69 ▲2.45 ▲2.85 ▲3.15
Kainga Ora 4.43 2.88 3.28 3.59
Kainga Ora - First Home Buyer Special - 2.25 - -
Kiwibank 3.75 ▲3.80 ▲4.00 4.34
Kiwibank - Offset 3.75 - - -
Kiwibank Special 3.75 ▲2.95 ▲3.15 3.49
Liberty 5.69 - - -
Nelson Building Society 4.95 2.99 3.24 -
Lender Flt 1yr 2yr 3yr
Pepper Essential 4.79 - - -
Resimac 3.39 2.98 2.79 3.29
SBS Bank 4.54 2.99 3.39 3.59
SBS Bank Special - 2.49 2.89 3.09
Select Home Loans 3.49 3.34 2.99 3.34
The Co-operative Bank - First Home Special - ▲2.65 - -
The Co-operative Bank - Owner Occ 4.40 ▲2.85 ▲3.25 ▲3.49
The Co-operative Bank - Standard 4.40 ▲3.35 ▲3.75 ▲3.99
TSB Bank 5.34 3.35 3.75 4.05
TSB Special 4.54 2.55 2.95 3.25
Wairarapa Building Society 4.99 3.55 3.49 -
Lender Flt 1yr 2yr 3yr
Westpac 4.59 3.45 3.85 4.09
Westpac - Offset 4.59 - - -
Westpac Special - 2.85 3.25 3.49
Median 4.54 2.95 3.25 3.49

Last updated: 28 September 2021 9:12am

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