Home Loan Tips: Property Valuations
Whether youâ€™re looking to buy a new house or you currently own a home, the present value of your property will play a large part in obtaining and managing a home loan.
Before any bank grants you a home loan, a property valuation must be completed. A valuation is performed to ensure that your property holds enough value to qualify for the home loan.
Your home loan and property value is measured according to a LTV ratio, loan-to-value ratio. In General the low your loan-to-value ratio the easier it will be to qualify for a home loan.
The Loan-to-Value percentage is calculated by dividing the size of the home loan by the assessed value of your property, and multiplying by 100.
In some circumstances you may qualify for a home loan with an LTV of up to and even exceeding 100%. Speak to a consultant now to find out how you can qualify for a 100% home loan
The value of your property will remain a key aspect of your home loan even once youâ€™ve gained ownership.
A home loan is a huge financial responsibility and for many of us it will be the largest financial investment of our lives. Therefore, being able to manage your mortgage is vital and equally important is being able to make full use of the financial potential of your mortgage.
Mortgage Readvances, Debt Consolidation and Second Bonds offer homeowners the opportunity to use the extra equity available in their home loans to pay off other higher interest debts.
A new property valuation assessment will be done on your property whenever you apply for any of these mortgage products.