Mortgage Appraisal
A lender-ordered valuation of the property confirming the purchase price reflects market value — typically $350–$500 and sometimes rebated by the lender.
A mortgage appraisal is a professional valuation of the property commissioned by the lender to confirm that the purchase price (or refinance value) reflects current market value. Appraisals are required on most uninsured mortgages and many insured ones. Cost is $350–$500 for a standard residential property and is paid by the borrower, though many lenders rebate the appraisal fee as a closing incentive. Appraisers must be accredited with AIC (Appraisal Institute of Canada) or equivalent. Appraisals are separate from home inspections — they focus on value, not structural condition.
Related Terms
The ratio of your mortgage balance to the property's appraised value — the key metric for insurance, pricing, and HELOC limits.
The fees and expenses paid at closing on top of the down payment — typically 1.5% to 4% of the purchase price depending on province and buyer type.
Related Guides
Related FAQs
- What's the difference between insured and uninsured mortgage renewals?
- How does mortgage insurance enable lower down payments?
- What property considerations impact my mortgage application?
- When should I start my mortgage renewal process?
- What are Loan-to-Income (LTI) limits and how will they affect institutional mortgage portfolios?