# What property valuation methods do lenders use, and how does it affect my loan?

> A possible refactor into a breakdown table for clarity could be:.

Category: Strategy
Last verified: 2026-02-18
Source: https://ratellow.com/faqs/strategy/what-property-valuation-methods-do-lenders-use-and-how-does-it-affect-my-loan

## Answer
| Description                  | Amount    |
|------------------------------|-----------|
| Expected Home Value          | $700,000  |
| Actual Appraised Value       | $650,000  |
| Difference Impact on LTV     | $50,000   |

This table provides a clear breakdown of the figures mentioned.

## Institutional highlights
- Lenders look at risk when deciding how to value your property, using a mix of methods to get it right.
- Your lender might send someone to your property for an inspection to assess its value.
- Lenders often use professional appraisers to give an expert opinion on what your property is worth.
- Lenders use computer programs to help estimate value, and they make sure these tools are up-to-date.
- Lenders keep a close eye on loan-to-value ratios to manage risk and ensure accuracy in lending.

## Related guide
- https://ratellow.com/guides/bridge-financing-explained

## Sources
- I. Purpose and scope of the guideline — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/residential-mortgage-underwriting-practices-procedures-guideline-2017#1.0
- Footnotes — https://www.osfi-bsif.gc.ca/en/guidance/guidance-library/capital-adequacy-requirements-car-guideline-2026
- Page 3 — https://assets.cmhc-schl.gc.ca/sf/project/cmhc/pdfs/factsheets/new/cmhc-quick-reference.pdf#page=3