Renovation Refinance › How do lenders value a home for a renovation?

How do lenders value a home for a renovation?

For a simple equity release they value the home as it is now. For a major renovation funded as a construction loan, they may value it as if complete, based on your plans, to lend against the higher finished value.

Written by Ross McFarlane, Licensed Mortgage Broker (Credit Representative 526725). About the author

Why this matters

The valuation basis depends on the loan type. A standard top up uses your current value, so your existing equity sets the limit. A construction style renovation can use an as if complete valuation, which considers what the home will be worth after the work, potentially unlocking more funds. This is why the loan structure matters for bigger projects.

The key points

Simple equity release uses current value.
Construction style can value as if complete.
As if complete can unlock more funds.
Loan structure drives the valuation basis.

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Last reviewed: June 2026

General information only. This page provides general information about home loans and is not financial or credit advice, a quote, or a guarantee, and your personal circumstances have not been considered. Lending policies, interest rates, fees and eligibility vary by lender and change over time. Always confirm your own situation with a licensed mortgage broker or lender before acting. Ross McFarlane (Credit Representative 526725) is an authorised Credit Representative of Australian Associated Advisers Pty Ltd t/a Keylend, Australian Credit Licence 392169.