# What property considerations impact my mortgage application?

> Lenders carefully assess the property's value and characteristics, directly influencing the loan amount you can secure.

Category: Purchasing
Last verified: 2026-04-14
Source: https://ratellow.com/faqs/purchasing/what-property-considerations-impact-my-mortgage-application

## Answer
Lenders carefully assess the property's value and characteristics, directly influencing the loan amount you can secure. Factors like location, property type, market trends, and potential risks are all considered. Properties in rapidly appreciating markets, for example, require more conservative valuations to account for potential price corrections. A key factor is also the condition of the property. The property must be located in Canada, be suitable and available for full time / year round occupancy and have year round access including homes located on an island (via a vehicular bridge or ferry).

## Institutional highlights
- Your home must be in Canada, livable year-round, and accessible in all seasons.
- You can't buy a home for more than $1,500,000 if you have a down payment of less than 20% (insured mortgage max). For properties over $1,500,000, a minimum 20% down payment is required (uninsured). The $1,000,000 limit applies to small rental properties for insurance purposes, not to owner-occupied homes with 20%+ down.
- Your lender will carefully check the assessed value of the property to make sure it's accurate.
- Your lender might adjust the property's value based on its location and current market conditions when calculating your loan-to-value (LTV) ratio.
- You can only borrow up to 65% of your home's value with a Home Equity Line of Credit (HELOC).

## Related guide
- https://ratellow.com/guides/insured-advantage

## Sources
- Page 2 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=2
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3
- Canada Guaranty — https://www.canadaguaranty.ca/lenders/underwriting-guidelines/
- Mortgage insurance — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#2.5.1