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Buying off the plan: what happens if the valuation comes in low at completion?
Bayley Clarke · Mortgage broker on the road · Last checked 1 November 2026 · 3 min read
The short answer
It's not a great spot, but you're not done yet. You've still got a life vest strapped on. The first move is seeing what other lenders, and as a result other valuers, might value the finished property at, because one valuer's number isn't the only number.
If we're still short after that, it comes down to your options: access to more cash for the deposit, enough breathing room to borrow more and potentially pay more lenders mortgage insurance, or a guarantor who can step in and cover the gap.
The 60 second version, filmed from the driver's seat. The rest of this page is the detail underneath it.
Why a low valuation at completion hurts
When you buy off the plan, you sign the contract at today's price, but the bank doesn't value the place until it's finished, sometimes a year or two later. The bank lends against whichever is lower, the price or the valuation. So if you agreed to pay $700k and it values at $650k, the bank is working off $650k, and that $50k gap has to come from somewhere.
For a long time that wasn't much of a problem, because things were going up and off the plan places often valued higher on completion. That may not be the case forever, and when it isn't, the gap lands on you, usually with a settlement date that's already locked in.
First move: another valuation
Valuations aren't an exact science. Different lenders use different valuers, and two valuers can look at the same property and land on different numbers. So the first thing I'd do is see what other lenders, and their valuers, might value the finished property at.
Timing matters here. You've generally got a fixed settlement date on an off the plan contract, and every valuation takes time to order and come back. So it pays to get moving as soon as the building is finished, so there's room to try another lender if the first number comes in short.
If you're still short
If the valuation still doesn't stack up, it comes down to three levers. The first is cash: whether you've got access to more of your own money to put in and cover the difference.
The second is borrowing more. If there's enough breathing room in your income to afford a bigger loan against the lower value, you can push your LVR up, which may mean paying lenders mortgage insurance, or paying more of it than you planned. The third is a guarantor, usually a parent, who uses equity in their own property to back part of your loan and cover the gap. Often it ends up being a mix of all three.
The honest bit: have contingencies before you sign
Buying off the plan means betting on what a property will be worth in the future. Plenty of the time it works out, but a low valuation is a real risk and you don't control it.
Before you sign, work out where you'd find the money if the valuation came in 5 or 10 percent short. If the answer is nowhere, that's worth knowing now, not at completion.
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Next question
The bank valued it lower than what I paid. What happens?Banks lend on the lower of price or valuation, so a short valuation means a bigger deposit.
Related answers
The full guide: Why did the bank say no? What is lenders mortgage insurance, what does it cost, and can I add it to my loan? How does a guarantor home loan actually work? What is LVR, and why does everyone go on about 80% LVR? Bank valuation or agent appraisal: which one counts?Not your question? Book a call and ask it, or call 0437 189 939.