A registered valuation is an independent professional assessment of a property’s market value, carried out by a registered valuer (NZIV member). Banks use valuations to verify the property is worth at least what you’re paying — a critical step in securing lending, particularly for high-LVR loans or unusual properties.
A registered valuation costs $600–$1,000 for a standard residential property in NZ. Banks typically require one when LVR exceeds 80%, for non-standard property types, or when the purchase price appears inconsistent with market values. It's paid by the borrower, ordered by the bank, and takes 3–7 working days.
When Banks Require a Registered Valuation
Not every mortgage requires a registered valuation. Banks typically require one when:
| Scenario | Reason |
|---|---|
| LVR above 80% | Higher risk loan — bank needs certainty on property value |
| Non-standard property type | Apartments, lifestyle blocks, leasehold, bare land, mixed-use |
| Purchase price seems inconsistent with market | Bank flags potential overpayment or unusual transaction |
| Large loan amount | Some banks require valuations above certain thresholds |
| Refinancing with equity release | Bank needs to confirm current market value |
| Construction loans | Progressive draws require stage-by-stage valuations |
For standard 80% LVR (20% deposit) purchases of standard residential property, many banks use automated valuation models (AVMs) or rely on recent comparable sales and council valuations — a full registered valuation may not be required.
Types of Valuation
Full registered valuation
A physical inspection of the property by a registered valuer. Includes:
- External and internal inspection
- Comparable sales analysis
- Assessment of improvements, condition, and any special features or defects
- Written report conforming to NZIV standards
Cost: $600–$1,000 for standard residential property; $1,000–$2,000+ for complex or rural properties.
Turnaround: 3–7 working days.
Desktop valuation (AVM — Automated Valuation Model)
An algorithm-generated estimate based on recent comparable sales, council data, and market trends. No physical inspection.
Used for: Lower-risk loans, standard urban properties with good comparable sales data.
Cost: $0–$200 (often absorbed by the bank).
Accuracy: Adequate for straightforward urban properties; less reliable for unique or rural properties.
Kerbside valuation
An external-only inspection with market analysis — no internal inspection. Less common than full valuations.
Who Orders and Pays for the Valuation?
The valuation is ordered by the bank from an approved valuer panel. You (the borrower) pay for it. The bank — not you — is technically the valuer’s client, which means the valuation report is provided to the bank, not directly to you.
Can you request a copy? Yes — you are entitled to receive a copy of the valuation report at your request under the Privacy Act. Ask the bank.
What Happens If the Valuation Comes In Low?
A “low valuation” means the registered valuer’s assessment is below the purchase price you’ve agreed with the vendor.
Impact on lending:
- The bank lends based on the lower of purchase price or valuation
- If valuation is $720,000 but you’re paying $750,000, the bank lends based on $720,000
- With a 20% deposit: bank will lend 80% of $720,000 = $576,000 (not $600,000 as you planned)
- Shortfall: $750,000 purchase price - $576,000 bank loan - $150,000 deposit = $24,000 shortfall
Your options:
- Make up the shortfall with additional savings or a gift from family
- Renegotiate the price with the vendor (you’ll need to provide the valuation report as evidence)
- Walk away — if the sale and purchase agreement includes a finance condition and you cannot resolve the shortfall, you can withdraw. Check with your solicitor.
- Commission a second valuation — valuations are professional opinions and can differ. If you believe the first is too low, request a review or commission another.
Important: If you’re buying at auction, you have no finance condition — you’re committed to the purchase at the agreed price regardless of valuation. Ensure you have valuation confirmation before auction day.
Valuation for Refinancing
If you’re refinancing and claiming more equity than the bank’s records suggest, a valuation may be required to confirm current market value before the bank will lend at the new LVR.
Example: You believe your home is now worth $950,000 (up from the purchase price of $700,000 5 years ago). The bank needs a registered valuation to confirm this before approving a top-up or refinance at a higher amount.
Choosing a Registered Valuer
Banks require valuers from their approved panel — you typically cannot instruct your preferred valuer and have it accepted by the bank. The bank will either instruct the valuer directly or give you a list of approved valuers to choose from.
For your own due diligence (separate from the bank’s valuation), you can instruct any NZIV-registered valuer.
Finding a registered valuer: New Zealand Institute of Valuers (NZIV) — valuer.org.nz
Frequently Asked Questions
Do I always need a registered valuation for a mortgage in NZ?
No — for standard urban residential properties with a 20% deposit, banks often use AVMs or comparable sales data without requiring a full registered valuation. Valuations are typically required for high-LVR loans, non-standard property types, or when the purchase price is questioned.
How much does a registered valuation cost in NZ?
$600–$1,000 for a standard residential property. Complex, large, or rural properties cost more ($1,000–$2,500). The cost is paid by the borrower and is usually non-refundable even if the loan is not approved.
How long does a valuation take in NZ?
3–7 working days from when the valuer is instructed. Rush valuations are sometimes available for an additional fee. For auction properties, plan for the valuation to be completed before the auction date.
What if the bank valuation is lower than what I’m paying?
The bank will lend based on the lower value. You must find the shortfall from other sources, renegotiate the price, or potentially withdraw (if you have a finance condition in the agreement). See your solicitor immediately.
Can I get my own valuation done for a NZ mortgage?
The bank will only accept valuations from its approved valuer panel. You can get your own valuation done separately for your own information, but the bank will still require its own from its panel.