A lender’s property valuation can affect the amount it is prepared to lend, even when you have agreed on a purchase price. Melbourne apartment buyers should check how their finance plan would work if the assessed value is lower than expected.
The apartment you choose and the loan you qualify for are connected decisions. A pre-approval is useful preparation, but it should not be treated as a guarantee that a particular apartment and purchase price will be accepted.
Where does a valuation fit in the process?
NAB’s guide to the application process explains that conditional approval remains subject to checks, including verification of your financial position and a property valuation. Your lender’s specific conditions are the ones that matter for your application.
An illustrative deposit shortfall
Imagine an apartment purchase price of $700,000. For this example only, assume the lender will lend up to 80% of its accepted property value and all other lending requirements are met.
- If the accepted value is $700,000, 80% is $560,000. The price less that loan is $140,000.
- If the accepted value is $660,000, 80% is $528,000. The price less that loan is $172,000.
- The difference in the cash needed for the purchase price is $32,000.
These figures exclude duty, legal fees and other purchase costs. The 80% limit is a hypothetical assumption, not a universal lender policy or an offer. Borrowing capacity, insurance requirements and lender conditions could change the result.
Make the uncertainty visible in your budget
Write down three separate amounts: the price you intend to pay, the loan amount actually supported by the lender’s assessment and the cash you can contribute. Then add purchase costs and the buffer you want to retain after settlement.
Do not count the same savings twice as both your settlement contribution and emergency reserve. If a shortfall appears, discuss it before making further commitments. A higher loan amount or another lender may not be available.
Questions to ask about the apartment
- Has this exact property been assessed, or is the current discussion based only on my income and deposit?
- What valuation or property conditions remain outstanding?
- Does the lender need additional information about the building, title or apartment?
- What happens to the proposed loan if the accepted value changes?
- Which finance dates need to align with the contract and settlement?
Give your conveyancer the contract and owners corporation documents for their review. Keep legal due diligence separate from the lender’s valuation; they answer different questions about the purchase.
Does a low valuation automatically end the purchase?
Not necessarily, but it calls for a fresh assessment of the funding and contractual position. Ask your broker what options can actually be assessed and your conveyancer what the contract permits. Avoid assuming that renegotiation, an extension or additional borrowing will be available.
Plan before you bid or sign
Contact Absolut Financial to discuss your apartment budget and outstanding finance conditions. See our first home buyer services and auction finance checklist. Buying an apartment in Hawthorn? Our Hawthorn mortgage broker page covers local buying questions and how to contact our Kew East team.
Information checked 29 September 2026. This hypothetical example is general information, not a property valuation, loan offer or personal financial advice.