WHAT IS A PROPERTY ASSESSMENT VS A HOME APPRAISAL?

Every year, homeowners receive their provincial property assessments — but many misunderstand what they actually represent and how they differ from a professional home appraisal.

See why assessments and appraisals often have very different values, and how lenders rely on appraisals to protect mortgage risk. 👇

🏡 What Is a Property Assessment?

A property assessment is issued by your provincial assessment authority to determine your home’s taxable value for municipal property taxes. 

✔️ calculated once per year 

✔️ based on mass-appraisal models 

✔️ reflects market conditions at a fixed date 

✔️ not reviewed property-by-property 

This means the assessed value can be significantly higher or lower than your home’s current market value.

Assessments are useful as a broad reference point — but should never be relied on to determine the actual purchase price of a home.

🏡 What Is a Home Appraisal?

A home appraisal is a professional, independent valuation of a property’s current market value. 

✔️ ordered by a lender 

✔️ completed by a licensed appraiser 

✔️ reflects today’s market conditions 

✔️ includes interior inspection & photos 

✔️ compares recent local sales (“comps”) 

Appraisals protect both the lender and the buyer by ensuring the home is worth the amount being loaned against it.

🏦 Why Do Lenders Require Appraisals?

Lenders don’t lend on outdated values — they lend on real, current risk. 

A lender orders an appraisal to confirm: 

✔️ the home’s market value 

✔️ the property condition 

✔️ comparable sales in the neighbourhood 

✔️ zoning and land-use factors 

✔️ marketability if foreclosure occurred 

If an appraisal comes in lower than the offer price, the buyer must cover the difference in cash.

💰 Who Pays for the Appraisal?

Typically, the buyer pays, but the appraisal belongs to the lender — not the buyer. 

This is because: 

✔️ the lender is the appraiser’s client 

✔️ regulations prevent sharing without permission 

✔️ buyers might “shop” the appraisal to other lenders 

✔️ lenders don’t want to pay if the deal falls through 

Borrowers may get some cost reimbursed after funding, depending on the lender.

📄 Why the Buyer Doesn’t Automatically Get a Copy

Even though the buyer pays for it, PIPEDA rules make the lender the official owner of the appraisal. 

The lender may share: 

✔️ the specific valuation 

✔️ sections directly related to the subject property 

But they will remove details relating to: 

✘ neighbouring properties 

✘ proprietary comparison data 

✘ internal appraisal methodology 

📌 Situations Where Appraisals Are Required

Appraisals are commonly needed for: 

• selling a property 

• refinancing or switching lenders 

• insurance replacement cost 

• legal disputes or estates 

• separation/divorce 

• contesting property taxes 

• HELOCs or equity financing 

• purchases with less than 20% down 

📸 Getting Your Home Ready for an Appraisal

Your appraiser will take photos and prepare a detailed report. To help maximize your valuation: 

✔️ clean and declutter 

✔️ ensure all lights work 

✔️ complete minor repairs 

✔️ improve curb appeal 

✔️ provide receipts for renovations 

✔️ ensure easy access to all areas 

✔️ highlight updates or upgrades 

✔️ secure pets 

✔️ prepare a list of recent improvements 

💵 Home Appraisal Cost

Costs vary based on location and complexity. 

Typical ranges: 

• $350–$500 for standard residential 

• higher for rural, luxury, or complex properties 

• travel fees for remote areas 

💬 Final Thought

A property assessment is designed for taxation — not for determining what a home is worth in today’s market. A professional appraisal gives lenders the real-time value they need to lend safely and gives buyers the clarity they need before moving forward.

If you’d like The Frontline Mortgage Group to walk you through the appraisal process before buying or refinancing, send us a message anytime.