Property Appraisal When Refinancing Your Mortgage in Canada

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A property appraisal is often an unavoidable step in the mortgage refinancing process in Quebec. The lender typically requires a professional appraisal to confirm the property's market value and ensure the loan-to-value ratio complies with OSFI regulatory limits, namely a maximum of 80% for conventional refinancing. The appraisal must be conducted by a chartered appraiser who is a member of the Ordre des évaluateurs agrees du Quebec (OEAQ), a professional body governed by Quebec's Professional Code. The typical cost of a residential appraisal ranges from $350 to $500 for a single-family home in Quebec, and can reach $600 to $900 for income properties (duplex, triplex, quadruplex). Some lenders absorb appraisal fees to attract new clients, while others charge them directly to the borrower. In certain cases, a lender may accept an automated valuation model (AVM) or a desktop appraisal for low-ratio refinances, eliminating the need for a physical visit. If the appraisal result is lower than expected, you can challenge it by providing recent comparable sales to your mortgage broker, who will submit them to the lender. A second appraisal can also be requested, though at your expense. Your AMF-certified mortgage broker can guide you toward the lender whose appraisal criteria are most favourable to your situation.

Property Appraisal in the Refinancing Process

When you refinance your mortgage in Quebec, the lender must confirm your property's market value. This step is essential as it determines the maximum amount you can borrow based on the loan-to-value ratio (LTV). Under the Office of the Superintendent of Financial Institutions (OSFI) guidelines, conventional refinancing is limited to 80% of the property value. The appraisal therefore plays a central role in your application's approval.

When Is an Appraisal Required?

Most lenders require a professional appraisal for any refinancing. However, there are exceptions. Some lenders, particularly monoline lenders like First National or MCAP, may accept an automated valuation model (AVM) when the requested loan-to-value ratio is below 65%. Other lenders offer desktop appraisals, where the appraiser analyzes data without physically visiting the property. These options depend on the borrower's risk profile, the property's location, and the lender's internal policies.

The Appraisal Process in Quebec

Lender request: After your refinancing application is submitted, the lender mandates an appraisal firm. The appraiser must be a member in good standing of the Ordre des évaluateurs agrees du Quebec (OEAQ), in compliance with Quebec's Professional Code.
Scheduling the visit: The appraiser contacts you to schedule a property visit. The typical timeframe is 3 to 7 business days after the request. During busy periods, this delay may be longer.
Visit and inspection: The appraiser inspects the property's interior and exterior, noting the square footage, general condition, completed renovations, number of rooms, and any elements affecting value. Photos are taken for the report.
Comparable analysis: The appraiser identifies similar properties recently sold in the same area (ideally within the last 6 months and within a 1 km radius). Sale prices are adjusted based on differences with your property.
Appraisal report: The final report is sent directly to the lender. It includes the estimated market value, methodology used, selected comparables, and adjustments applied. The typical turnaround is 5 to 10 business days after the visit.

Appraisal Costs by Property Type

Single-family home or condo: $350 to $500
Duplex: $500 to $700
Triplex or quadruplex: $600 to $900
Luxury or atypical property: $800 to $1,500
Vacant land: $300 to $500

Challenging an Unfavourable Appraisal

If the appraisal comes in lower than expected, it can jeopardize your refinancing project. You have several options. First, gather recent comparable sales that support a higher value. Your mortgage broker can submit them to the lender to request a review. If the lender maintains its position, you can order a second appraisal from another OEAQ chartered appraiser, though this is entirely at your expense. Finally, your broker can submit the file to another lender whose appraiser panel may produce a different result.

Frequently Asked Questions

When is a property appraisal mandatory during refinancing?

An appraisal is required for the vast majority of refinances, as the lender must confirm the market value to calculate the loan-to-value ratio. Some lenders may waive it for low-ratio refinances (below 65% LTV) using an automated valuation model (AVM). Your AMF-certified broker can identify lenders offering this option.

How much does a property appraisal cost in Quebec?

For a single-family home, expect to pay between $350 and $500. For a duplex or triplex, fees range from $600 to $900. Commercial or atypical properties cost more. Some lenders offer to cover these fees as an incentive during refinancing.

Who chooses the appraiser for refinancing?

The lender typically selects the appraiser from its own list of approved professionals. The borrower cannot freely choose their appraiser. The appraiser must be a member of the Ordre des évaluateurs agrees du Quebec (OEAQ) and comply with the Uniform Standards of Professional Appraisal Practice.

What can I do if the appraisal comes in lower than expected?

You can provide recent comparable sales to your broker, who will submit them to the lender for review. If the lender maintains the value, you can request a second appraisal (at your expense), switch lenders, or adjust the refinancing amount. In some cases, the broker can submit the file to a lender using a different appraiser panel.

What is the difference between a full appraisal and an automated valuation?

A full appraisal involves a physical property visit by an OEAQ chartered appraiser who inspects the interior and exterior, analyzes comparables, and writes a detailed report. An automated valuation model (AVM) uses algorithms based on recent sales and Quebec land registry data, without a physical visit. AVMs are faster and less expensive but are only accepted by certain lenders for low-risk profiles.