Property valuation NZ: CV, registered valuation or online estimate?
A property valuation NZ lenders accept is a registered valuation, done by a registered valuer who inspects the property. Your council’s CV or RV, an agent’s appraisal and online estimates are useful guides, but they aren’t valuations a bank will lend on. The value that counts sets your LVR, which decides how much you can borrow and how much equity you can use.
Illustrative example: $600,000 loan against a home valued at $800,000 or $740,000. Lender requirements vary, so check with your bank or ask me.
“What’s my house worth?” gets four different answers depending on who you ask. The council has a number, an agent has a number, a website has a number, and the bank has its own. They’re all for different jobs.
Here is what each one is in a property valuation NZ guide, and which one matters when you’re borrowing.
CV and RV: the council number
Your council’s capital value (CV) is also called the rateable value (RV), and used to be called the government valuation. Per council and QV guides, it’s what the property was likely to sell for at the date of the council’s last general revaluation, and it’s usually updated every three years. It’s set by mass appraisal, and its main job is to split rates between properties.
It’s free and easy to find, which makes it a fair starting point for new zealand property values. But it’s dated, it excludes chattels, and it isn’t designed for lending or insurance.
Online estimates and agent appraisals
Search for property values nz free and you’ll find automated estimates from sites like QV and OneRoof, and similar tools such as homes.co.nz. QV’s property search gives an estimate for every NZ property. These are computer-generated, and some lean on the council RV. If you’ve renovated without a consent, they may undervalue you.
QV says its valuer-checked desktop report isn’t suitable for lending because nobody inspects the property. OneRoof says the same about its own estimates: you can’t use them to get a loan.
An agent’s appraisal is the agent’s opinion of what you could sell for. It’s handy before you list, but it isn’t a registered valuation either. Treat both as a guide to what’s my house worth nz, not a figure to borrow against.
The registered property valuation NZ banks use
A house valuation (the property valuation NZ banks rely on) by a registered valuer involves an inspection inside and out, and a look at recent sales nearby. QV describes a full market valuation as suitable for finance and insurance, and it reflects the property on the day it’s inspected.
Sorted says that as a rule, if you’re borrowing more than 80% or buying privately, the bank will insist on a registered valuation. If the price and the valuation differ, lenders usually lend on the lower figure.
In my experience, you’ll need one in three main situations. The first is when your deposit is under 20%. The second is a private sale, where there’s no agent or open market price. The third is when the bank’s own e-valuation comes back well away from the price you’re paying, usually 15% or more above or below it. Ask before you order one. Most banks will arrange it or tell you which valuers they accept, and the cost is usually yours.
Not sure what your home is worth to a lender? I’ll look at your numbers and tell you how much equity you can likely use.
Book a free equity check →How value sets your LVR and equity
LVR is your loan divided by the property’s value. Equity is value minus debt. A small change in value moves both. On a $600,000 loan:
| Valuation | LVR | Equity | Room to 80% LVR |
|---|---|---|---|
| $800,000 | 75.0% | $200,000 | $40,000 |
| $740,000 | 81.1% | $140,000 | $8,000 over |
A $60,000 lower valuation takes you from comfortable to over 80%. That’s the difference between borrowing more at a standard rate and facing a low-equity margin or fee. It’s also why I like to see a value early. For buyers, it can mean needing a bigger deposit. For owners, it can mean less equity to use for a renovation, a debt consolidation or an investment deposit.
The detail is on my pages for using home equity, refinancing your mortgage and low deposit home loans.
Where to start with a property valuation NZ lenders accept
- Look up your CV or RV on your council’s website, and an online estimate for a rough range.
- Ask an agent for an appraisal if you’re thinking of selling.
- Before you apply, tell me your goal. I’ll tell you whether your lender will want a registered valuation, and when to order it.
- Work out your LVR using the valuation, not the estimate.
Common questions
What is the difference between CV and RV in NZ?
Do banks accept online estimates?
Is a registered valuation different from an agent appraisal?
How does my property’s value affect my mortgage?
Read next
Using home equity
What equity is and how to use it.
Refinance your mortgage
When switching banks makes sense.
Low deposit home loans
Buying with less than 20% down.
Talk it through with Yatin. Free, no obligation, and usually one phone call. I work with clients across New Zealand, remotely.
Book a free chat →Or call 022 064 7770
This article is general information only and isn’t personalised financial advice. Figures are illustrative and based on the assumptions shown. Mortgage Sense is a trading name of Yatin Kainth, a Financial Adviser (FSP1007497) providing advice under the Mortgage Managers licence (North West Group Holdings Ltd, FSP682791). See the Disclosure Statement.
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