Property Value and Appraisal

Canadian appraisal and valuation terms that affect approval, refinancing, and home-equity limits.

Mortgage approval depends on both borrower strength and property value. This section explains the valuation language that affects purchase financing, refinancing room, and lender comfort with the security.

Value Labels At A Glance

Term	Main use	What borrowers should remember
Appraisal	Lender valuation process	The lender may order it even when the purchase price seems obvious.
Appraised Value	Lending decision number	It can cap financing if it comes in below expectations.
Market Value	Open-market value concept	It is evidence-based, not just a seller’s target price.
Assessed Value	Property-tax system	It is not the same thing as the lender’s value conclusion.
Comparable Sales	Evidence for value support	Stronger comps usually make the value conclusion more persuasive.

Use This Section When

the lender or insurer is ordering an appraisal
you need to separate appraised value, market value, and assessed value
you are refinancing or opening a HELOC and value limits matter
you want to understand how comparable sales affect financing decisions

Start Here

Common Reader Paths

“Why does the lender care about value if my income is strong?”: Appraisal, Appraised Value
“What is the difference between tax assessment and market value?”: Assessed Value, Market Value
“How is the value opinion built?”: Comparable Sales, Appraised Value

Why This Section Matters

If the lender or insurer values the property differently than the borrower expects, the financing structure can change. Appraisal language therefore matters at purchase, refinance, and home-equity stages.

Key Distinctions

Appraised value is the lender-supported conclusion on the file, while market value is the broader open-market concept behind that conclusion.
Assessed value is for tax administration, not a substitute for an appraisal.
Comparable sales are part of the evidence set, not a guarantee that one headline neighbourhood sale dictates the result.

Continue to Nearby Sections

Use Closing Costs and Closing Process when the valuation issue is affecting an active purchase.
Use Renewal, Refinancing and Home Equity when the valuation issue is tied to a refinance or HELOC.

In this section

Appraisal
Independent valuation used to support purchase, refinance, and home-equity lending decisions.
Appraised Value
Lender-supported valuation conclusion used to size financing and measure loan-to-value.
Assessed Value
Property-tax assessment figure that should not be mistaken for a lender's valuation decision.
Comparable Sales
Recent similar-property sales used by appraisers to support an opinion of market value.
Market Value
Estimated price a property could reasonably achieve in an open market transaction.

Revised on Friday, April 24, 2026

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