What role does property appraisal play in my mortgage?
Property appraisal accurately assesses the collateral value securing your mortgage.
Key Points
Lenders use different methods to determine your home's value, including appraisals and online tools.
Lenders carefully check how they estimate property values to make sure they're accurate.
Your lender has processes to manage the appraisal and value of your home as security for the mortgage.
The assessed value of your home should reflect its true market price and use.
If you have a smaller down payment, the lender will be extra careful about the home's valuation.
Appraisals are done professionally by qualified, independent appraisers.
Primary sources
Primary sources cited by the Ratellow Research Team. Editorial standards · Correction policy
Related Questions
How does the stress test affect my 2026 renewal options?
Same-lender renewals and uninsured straight switches (OSFI, November 21, 2024) are exempt from the prescribed MQR. A refinance, an insured switch, or any increase in loan amount still requires the stress test — greater of 5.25% or contract + 2%.
What's the difference between insured and uninsured mortgage renewals?
Insured mortgages face stricter CMHC/Sagen constraints while uninsured mortgages enjoy flexible OSFI-only guidelines.
Should I consider switching lenders or negotiate with my current lender?
Your switching decision hinges on rate differential versus requalification risk, with break-even analysis determining optimal strategy.
When should I start my mortgage renewal process?
Start your renewal process 120-180 days before your current term expires to maximize your strategic options.