# What if I'm using a reverse mortgage; how does this affect low property values?

> Reverse mortgages are non-recourse loans with no term, so values are appraised independently and conservatively.

Category: Purchasing
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/purchasing/what-if-im-using-a-reverse-mortgage-how-does-this-affect-low-property-values

## Answer
Reverse mortgages are non-recourse loans with no term, so values are appraised independently and conservatively. FRFIs appraise the properties at regular intervals and monitor major urban centers for valuation trends.

## Institutional highlights
- To make sure your home's value is accurate, appraisals can't include guesses about future price increases.
- Your lender should regularly check your home's value to make sure it reflects current market conditions.
- Lenders must carefully review your mortgage application, including how long you plan to live there and potential changes to interest rates, to ensure you can afford your mortgage.

## 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