News & Research

Digital valuations surge, as data transforms the mortgage industry

Australia’s valuation and mortgage industry has undergone a digital transformation since 2019, with a surge in valuation volumes leading to innovations and widespread adoption of solutions that drive enhanced speed, efficiency and customer experience.

CoreLogic has seen an uptick of more than 33% in digital valuations ordered since 2019. Desktop valuation volumes have almost doubled from 12% to 21%, while Automated Valuation Model (AVM) usage is also at record levels, representing more than a quarter (28%) of all valuations.

CoreLogic’s Executive – Product, Data and Analytics, Tim Jenner, said a series of innovations following COVID have had a transformational impact on the industry.

He said almost half of all valuations processed through the data and analytics company are now digital, with some online lenders well over 80%. “COVID provided the catalyst for innovative change after in-person activity was greatly reduced at a time when a record number of mortgages required the timely processing of valuations,” Mr Jenner said.

“Beyond serviceability, there are two critical enablers in the mortgage origination process; one is an accurate valuation of a property and the second is time. Fast, accurate, digital solutions that significantly reduce bottlenecks while ensuring the property is suitable for the borrower and provides an acceptable level of security for the lender has been a gamechanger for the industry.”

Mr Jenner said the use of property data, analytical techniques and digital workflow tools removed several manual steps from the process and allowed lenders and brokers to radically reduce the ‘time to yes’ for their customers.

A combination of artificial intelligence and machine learning analytic techniques, cloud-based SaaS platforms, and advanced real time business intelligence to determine whether a mortgage can be written on a property, with an immediate decision, or whether a data-powered human valuation is required.

The data shows refinance loans are the leading reason for valuation requests, representing 76% of all valuations, a proportion that has steadily increased each year since 2020.

Mr Jenner said continual product innovations in partnership with industry leaders such as valuation firm Opteon had further improved the data and processing speed.

SMARTval is a data-driven solution that slashes valuation turnaround times, potentially converting as many as 40% of all full inspection valuations down to a one-day turnaround time and ensures a strong risk profile on all applications and valuation mixes.

National Australia Bank (NAB) and AMP Bank have integrated CoreLogic’s valuation solutions and property data into their operations to drive the digitisation and automation transition responsible for improving the mortgage origination experience.

NAB’s Executive, Home Ownership, Andy Kerr, said when customers are looking for a home loan or looking to refinance, a fast decision is critical to provide certainty and confidence and help them get into a property or get their loan sorted.

“Through our partnership with CoreLogic, NAB has been able to achieve faster turnaround times and simpler home loan approval processes and, since we introduced SMARTval a few months ago we’ve seen even more positive outcomes for our customers,” he said.

“We were the first major lender to leverage SMARTval, which has helped slash timelines for valuations while meeting all the stringent conditions required to achieve settlement. Innovation like this is key to continually improving and simplifying our product offering, our approval times for customers and our experience for brokers and our colleagues.”

AMP Bank’s Head of Lending Operations & Client Assist, Melissa Christy, said AMP Bank continues to focus on embedding a digital-first service experience and having the right technology in place to support its brokers and deliver for customers is critical.

In the past three years AMP Bank has reduced its average valuation fee by -35%, and slashed its average turnaround time across all valuation types by -40%, by optimising its digital valuation mix.

“AMP Bank has unlocked faster turnaround times through its partnership with CoreLogic, with new types of digital valuations helping to enhance the process and improve the experience for brokers and customers,” she said.

“Over 60% of AMP Bank’s valuations this year were completed via AVM or Desktop while adhering to a controlled risk mitigation framework. As a result we’re seeing some customers receive a response on their valuation almost instantly with AVM, and it’s becoming increasingly common for Desktops to be turned around within an hour. ‘Time to yes’ is a measure brokers and customers count on, and one we’re committed to making as quick as possible.”

Learn how to optimise your valuation channel mix


CoreLogic Australia

CoreLogic Australia

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