Thinking about refinancing your home loan in South Australia? Whether you want to reduce your interest rate, access equity, or consolidate debt, your lender will likely require a property valuation to determine your home’s current market value.
In this article, we explore how property valuation for refinancing works in SA, what valuers assess, and how you can prepare to achieve the best possible outcome.
What Is a Refinancing Property Valuation?
A refinancing valuation is an assessment of your home’s current market value, used by lenders to calculate your loan-to-value ratio (LVR) and determine:
- How much you can borrow
- Whether you’re eligible for certain loan products
- If lenders’ mortgage insurance (LMI) applies
- Your overall refinancing risk profile
Lenders usually order the valuation themselves, but you can also arrange an independent valuation for your own financial planning.
Why Valuation Matters When Refinancing
- A higher valuation means more equity, better loan terms, and less chance of paying LMI
- A lower valuation may reduce your borrowing power or delay your refinancing plans
- A valuation helps you unlock equity for renovations, investments, or debt consolidation
In a competitive property market like Adelaide and regional SA, staying informed on your home’s true value is key to refinancing successfully.
What Do Valuers Assess During a Refinance Valuation?
A Certified Practising Valuer (CPV) will assess:
- The land size and location
- The property’s age, condition, and layout
- Any renovations or improvements made since purchase
- The quality of finishes, fittings, and fixtures
- Comparable sales in your suburb within the last 6 months
- Local market trends in areas like Glenelg, Norwood, or Mount Barker
They’ll usually conduct a full physical inspection unless a desktop or kerbside valuation is permitted by the lender.
Types of Valuation Used in Refinancing
| Valuation Type | Description | When It’s Used |
| Full Valuation | Internal and external inspection with full report | Standard for most refinances |
| Desktop Valuation | Data-driven with no inspection | Low-risk applications with high equity |
| Kerbside Valuation | External drive-by inspection only | Moderate-risk applications |
| AVM (Automated) | Computer model using sales data | Quick checks for low LVR refinances |
How to Prepare for a Refinance Valuation
- Clean and tidy the home inside and out
- Make a list of renovations or upgrades since your purchase
- Highlight energy efficiency improvements (solar, insulation)
- Ensure all rooms are accessible during inspection
- Present your home as you would for a potential buyer
Even small improvements like painting, landscaping, or decluttering can make a strong impression.
Common Factors That Influence Valuation in South Australia
- Location – Proximity to Adelaide CBD, schools, transport, and coastlines
- Recent sales – Especially in areas like Prospect, Semaphore, and Unley
- Property type – Detached homes tend to value higher than apartments
- Market conditions – Rising markets generally improve refinance valuations
- Zoning and land use – Subdivision or development potential adds value
What Happens If the Valuation Is Too Low?
If your valuation comes in below expectations, you may:
- Need to reduce your refinance amount
- Incur Lenders Mortgage Insurance (LMI) if LVR exceeds 80%
- Consider revaluing after further improvements
- Shop around for other lenders with more favourable assessment criteria
Some banks allow a second valuation request if evidence of higher sales is available.
How Much Does a Property Valuation for Refinancing Cost in SA?
In most cases, lenders cover the valuation fee. However, if you’re arranging your own independent report, typical costs include:
| Property Type | Estimated Fee Range |
| Standard home (metro) | $400 – $700 |
| Renovated or extended home | $500 – $1,000 |
| Rural or acreage property | $800 – $1,500+ |
Conclusion
Property valuation is a key step in the refinancing process in South Australia. By understanding what valuers look for and how to prepare, you can maximise your home’s value and access better lending options.
Whether you live in Adelaide, the Hills, or a growing regional centre, partnering with a mortgage broker and preparing your property strategically can help you refinance smoothly and successfully.
