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Straight Answers · First home
Can the guarantor's property use an online report as a valuation, or does it need an inspection?
Bayley Clarke · Mortgage broker on the road · Last checked 11 November 2026 · 2 min read
The short answer
Generally you're going to need an in-person inspection on the guarantor's property. Someone independent comes out, has a look at the place and the comparable sales, so the bank isn't relying on a random online report to tell it what the property's worth.
Normally the bank pays for that valuation, not you and not your guarantor. Once the number's in, we run the figures to see how buying with a guarantor looks for you.
The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.
Why an online report usually isn't enough
With a guarantor loan, your parents' property, or whoever's guaranteeing, is doing a lot of the work. Part of your loan is secured against it, so the value of that property decides how much equity is actually available to support you. If the number's wrong, the whole structure is wrong.
That's why the bank wants an independent valuer to physically come out, walk through the property, look at its condition and look at what similar places nearby have sold for. It reduces the risk on whatever that valuation number ends up being. An online report is an automated estimate built off sales data. It's handy for a rough idea, but it hasn't seen the kitchen, the roof or the extension out the back, and banks are generally not comfortable leaning on it for security that's carrying part of someone else's loan.
Who pays, and what happens next
On a new application, normally the bank wears the cost of the valuation because it's winning a new customer. That's been my experience across the board, with the exception of things like very large or very rural properties where a valuer has a long drive. So in most cases it doesn't cost you or your guarantor anything to find out.
Once the valuation's back, we know what the guarantor's property is worth in the bank's eyes, and from there we work out how much of its equity can be used, how much of your loan the guarantee needs to cover, and whether the whole thing stacks up with the repayments on your side. That's the part I do with you.
The honest bit: the valuer's number is the one that counts
The valuation can come in lower than your parents expect, or lower than what the online report said. That doesn't kill the deal, but it can change how much equity is available and how the guarantee is structured.
If the number comes back tight, there are sometimes options, like a different lender with different settings on guarantor equity. Better to know early than to plan around an online estimate.
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Next question
If my guarantor sells their house, what happens to my loan?It depends on what your property is worth when they sell. Under 80% on a fresh valuation, the guarantee generally comes off.
Related answers
The full guide: How to buy your first home The full guide: Guarantor home loans The full guide: Bank valuations, explained Will the bank send a valuer to the place I'm buying, or just do an online report? Bank valuation or agent appraisal: which one counts? Do I pay for the bank valuation? How much of my parents' equity can actually be used to support a guarantor loan?Not your question? Book a call and ask it, or call 0437 189 939.