What is valuation fee?

Valuation fee is the cost of the lender's independent property valuation, ordered as part of loan approval. Most lenders in 2025-26 absorb the cost on standard residential applications (sub-$1.5M, sub-80% LVR) — they want the customer and the valuation cost is trivial against the loan revenue. Construction loans, high-LVR loans, commercial properties, and large-balance loans usually attract a passed-through fee of $300-$500.

The valuation type drives the fee: a desktop AVM is usually $0, a kerbside drive-by is $150-$250, and a full physical inspection is $350-$550. Lenders pick the cheapest valuation that satisfies their internal risk policy for the loan.

Some lenders pass valuation fees through to the borrower on declined or withdrawn applications. Worth confirming the policy at application time — a $500 valuation fee on a declined application is a sunk cost.

valuation cost · property valuation fee