Posted On Dec 19, 2023

Here's some examples of when and why appraisals are needed for a mortgage, and what lenders are looking for.

WHY?
- Confirm purchase price aligns with current fair market value 
- Assess property value and overall condition of the home, ensuring a sound investment as collateral for the mortgage

WHEN?
- Down payment/property equity of 20% or more (exceptions apply)
- Price/value over $1M
- Rural properties
- Rental/Investment property
- Private sale/purchase
- Non-arms length sale/purchase (i.e. selling to family/friend)
- Properties not on MLS
- When B or C type mortgage is required  

WHAT DO LENDERS LOOK FOR?
- Property actually exists (lots of fraud in the biz!)
- Any structural issues
- Signs of drug/crime operations (i.e. not a biker clubhouse)
- Mold or water marks 
- Updated electrical panel
- Heating source


Danny Bell, AMP
Mortgage Broker | Lic.#M13001996
T. 289-200-9061
W. www.strictly-business.ca 
The Mortgage Centre
Durhammortgage.com Ltd. 
Reg. #10231

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