The government intends to eliminate the property appraisal requirement for home loan applications, allowing banks to conduct their own valuations using statistical models.Both banks and appraisers, however, warn the planned change carries significant risks.
The government wants to scrap the required appraisal for collateral in an effort to reduce bureaucracy and save home loan applicants hundreds of euros.
Prime Minister Kristen Michal (Reform) believes that both buyers and banks will benefit from the change.
“This is mutually beneficial: the client saves time, they don’t have to request the appraisal, don’t have to fulfill this formality, don’t have to look for an appraiser, and the bank can actually make lending decisions faster, more automatically and more conveniently,” Michal explained.
Read more: ERR.EE
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