# What happens if my property is appraised lower than my offer price?

> The lender will base your mortgage amount on the *appraised* value, so you'll need to cover the difference.

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-happens-if-my-property-is-appraised-lower-than-my-offer-price

## Answer
The lender will base your mortgage amount on the *appraised* value, so you'll need to cover the difference. FRFIs base mortgage amounts on your ability to repay and the property's value as security. Thorough property assessments mitigate risks, so FRFIs have valuation policies to protect themselves.

## Institutional highlights
- Lenders use different ways to figure out your home's value, balancing risk and cost.
- Figuring out value can include a home visit, a professional appraisal, or using computer programs.
- Your lender should have a way to double-check if the home's value seems off.
- The home's value should match what similar homes are selling for and how much the bank could get if they had to sell it.

## Related guide
- https://ratellow.com/guides/dealing-with-low-appraisals

## Sources
- Property appraisals — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.4.2
- Property value used for the LTV ratio — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026