Questions About Appraisals During COVID-19
Diane Gogar • April 29, 2020
If you're looking to purchase or refinance a property while most of Canada is self-isolating to stop the spread of COVID-19, you probably have some questions around how the pandemic is impacting appraisals.
If you're looking to put a plan together that involves mortgage financing, the best place to start is to contact me directly. I would love to work with you!
However, here a few questions that you may be asking about appraisals and some general information.
1. Can I get an appraisal without having someone come into my property?
Rest assured that to prevent the spread of COVID-19, it is possible to have an appraisal completed without anyone coming into your personal space to view and assess the property.
Instead, the appraiser will use information from MLS data, municipal permits, and property assessment information, as well as information provided by the client or owner to find the property's value.
Be aware that as the provincial government starts reopening and loosening regulations around social distancing and self-isolation, this might change.
2. Is there anything I can provide to assist with the appraisal?
As the appraiser won't be able to assess the property physically, consider providing some interior photos. Your pictures could then be included in the report in place of photos that they would typically take themselves.
Alternatively, if you're a little more tech-savvy, consider a video tour of your property carried out by a Zoom Call, FaceTime, WhatsApp, or Marco Polo.
In these times, appraisers are very flexible; it's a good idea to be available, and as helpful as possible.
3. Will the banks accept an appraisal if the property wasn't physically inspected?
As we're living in unprecedented times, the real estate industry is taking Public Health Authority guidelines and advice seriously and is working together to help stop the spread of COVID-19. This includes adapting the way business is done, and accepting that alternatives to the ordinary course of business may be required.
At this time, most lenders are accepting property valuation from accredited appraisers, even if the property hasn't been physically inspected. Your team of real estate professionals will be able to provide you with guidance at the appropriate time.
4. Are property values coming in lower because of COVID-19
While this is a tough question to answer, here are the facts.
An appraiser's job is to assess the property to establish a value, so that a lender can confidently provide mortgage financing while protecting their investment, making sure there is sufficient equity in case of default.
Establishing property value includes scrutinizing comparable listings; assessing what has sold, at what price, within a reasonable time frame. While also considering how long that property sat on the market.
In the middle of a global pandemic, nothing can be considered normal.
Unfortunately, as we're living through a time of uncertainty, pessimism and conservatism will most likely lead to lower appraisal values.
As MLS data will undoubtedly show a significant drop in sales activity during COVID-19, it might be harder for appraisers to find "comparable properties" to use in assessing another property's value. However, if the values of the properties that did sell remain steady, there is cause to believe that appraised values could remain stable as well. Only time will tell.
If you have any more questions, please contact me directly, I'd love to talk with you.
There is no doubt about it, buying a home can be an emotional experience. Especially in a competitive housing market where you feel compelled to bid over the asking price to have a shot at getting into the market. Buying a home is a game of balancing needs and wants while being honest with yourself about those very needs and wants. It’s hard to get it right, figuring out what’s negotiable and what isn’t, what you can live with and what you can’t live without. Finding that balance between what makes sense in your head and what feels right in your heart is challenging. And the further you are in the process, the more desperate you may feel. One of the biggest mistakes you can make when shopping for a property is to fall in love with something you can’t afford. Doing this almost certainly guarantees that nothing else will compare, and you will inevitably find yourself “settling” for something that is actually quite nice. Something that would have been perfect had you not already fallen in love with something out of your price range. So before you ever look at a property, you should know exactly what you can qualify for so that you can shop within a set price range and you won’t be disappointed. Protect yourself with a mortgage pre-approval. A pre-approval does a few things It will outline your buying power. You will be able to shop with confidence, knowing exactly how much you can spend. It will uncover any issues that might arise in qualifying for a mortgage, for example, mistakes on your credit bureau. It will outline the necessary supporting documentation required to get a mortgage so you can be prepared. It will secure a rate for 30 to 120 days, depending on your mortgage product. It will save your heart from the pain of falling in love with something you can’t afford. Obviously, there is nothing wrong with looking at all types of property and getting a good handle on the market; however, a pre-approval will protect you from believing you can qualify for more than you can actually afford. Get a pre-approval before you start shopping; your heart will thank you. If you’d like to walk through your financial situation and get pre-approved for a mortgage, let’s talk. It would be a pleasure to work with you!
Refinancing your mortgage can be a smart financial move, but how do you know if it’s the right time? Whether you’re looking to lower your monthly payments, access home equity, or consolidate debt, refinancing can offer valuable benefits. Here are five key signs that it might be the right time to refinance your mortgage in Canada. 1. Interest Rates Have Dropped One of the most common reasons Canadians refinance is to secure a lower interest rate. Even a small decrease in your mortgage rate can lead to significant savings over time. If rates have dropped since you took out your mortgage, refinancing could help you reduce your monthly payments and save thousands in interest. ✅ Tip: Check with your mortgage broker to compare your current rate with today’s market rates. 2. Your Financial Situation Has Improved If your credit score has increased or your income has stabilized since you first got your mortgage, you might qualify for better loan terms. Lenders offer lower rates and better conditions to borrowers with strong financial profiles. ✅ Tip: If you’ve paid off debts, improved your credit score, or increased your savings, refinancing could work in your favour. 3. You Want to Consolidate High-Interest Debt Carrying high-interest debt from credit cards, personal loans, or lines of credit? Refinancing can help consolidate those debts into your mortgage at a much lower interest rate. This can make monthly payments more manageable and reduce the overall cost of borrowing. ✅ Tip: Make sure the savings from refinancing outweigh any prepayment penalties or fees. 4. You Need to Free Up Cash for a Major Expense Many Canadians refinance to access their home’s equity for renovations, education costs, or major life expenses. With home values rising in many areas, a refinance could help you tap into that value while still keeping manageable payments. ✅ Tip: Consider a home equity line of credit (HELOC) if you need flexible access to funds. 5. Your Mortgage Term is Ending, and You Want Better Terms If your mortgage is up for renewal, it’s the perfect time to explore refinancing options. Instead of simply accepting your lender’s renewal offer, compare rates and terms to see if you can get a better deal elsewhere. ✅ Tip: A mortgage broker can help you shop around and negotiate better terms on your behalf. Is Refinancing Right for You? Refinancing isn’t always the best move—there can be penalties for breaking your current mortgage, and not all savings are worth the switch. However, if you relate to any of the five signs above, it’s worth discussing your options with a mortgage professional. Thinking about refinancing? Let’s chat and find the best option for you!
