Can I get a caveat loan without a valuation?

Automated valuation models estimate value from recent sales, land size and property attributes and give a confidence score. For a standard house in a suburb with plenty of sales, the confidence is high and the lender uses it. For a large or unusual property, or in a thin market, the confidence drops and the lender either orders a desktop valuation from a registered valuer, who reviews the data and photographs without visiting, or a kerbside inspection. Each step adds a day.

Because the value is less certain, caveat lenders cap total debt at a lower percentage than a bank would: 65 per cent of the automated value is common, sometimes 70, occasionally 75 with a physical valuation. The lender is deliberately leaving a buffer for valuation error and for the cost of enforcement. If you need a higher LVR, expect to pay for a full valuation and wait for it.

Commercial and industrial property, rural and lifestyle blocks, development sites, property with a large land component, and loans above a few million dollars usually require at least a desktop valuation from a registered valuer and often a physical inspection. Where the borrower disputes the automated value, ordering a valuation is the only way to change the number.