What is an appraisal?

An appraisal provides the lending institution a professional opinion as to the fair market value (FMV) of the property.  Appraisals are performed by specialists certified for this purpose.

Appraisals are required when you have more than 25% of the purchase price to put down.  For mortgages with less than 25% down payment, the mortgage will generally be insured by the Canadian Home Mortgage Corporation (CMHC) or GE Mortgage Insurance Company.  CMHC and GE Mortgage Insurance do not require an appraisal since they have their own system for valuing properties.