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Revalued.caYour home's value, and what it unlocksAsk Mitey
Lender valuations

Why lenders revalue your home before they lend

Because the value sets the limit: up to 80% of it in total and 65% for a HELOC. OSFI's Guideline B-20 expects federally regulated lenders to value property with a risk-based mix of tools, not rely on any single method, use independent qualified appraisers, monitor any automated valuation tools, and be more thorough for higher-risk loans such as high loan-to-value or fast-rising markets.

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What OSFI expects

  • "Consider a combination of valuation tools" and "not rely on any single method for property valuation".
  • Third-party appraisers independent from mortgage acquisition, processing and decisions, and designated, licensed or certified.
  • Where automated valuation tools are used, processes to monitor their ongoing effectiveness; models independently validated.
  • More thorough valuation for higher-risk loans: high loan-to-value, markets with rapid price increases.

When you'll get a full appraisal

Most refinances and new HELOCs, especially near the 80% limit; unusual or rural homes; and when the lender's automated tools disagree.

When an AVM may do

Low loan-to-value requests on typical homes in active markets. The lender decides, within its OSFI-expected risk framework.

What it means for you

Plan around the appraised value, not your hope. Test a lower figure in the equity calculator and build comparables with the comparables check.

Frequently asked questions

Will my lender accept an online valuation?

Some lenders use automated valuations for low-risk requests, but OSFI says lenders shouldn't rely on a single method and should monitor automated tools. Expect a full appraisal for larger or higher loan-to-value requests.

Primary sources

  1. OSFI — Guideline B-20: Residential mortgage underwriting (HELOC 65%, appraisals, AVMs) (effective October 31, 2017). Checked .
  2. Justice Laws — Bank Act, s. 418: 80% limit on uninsured residential loans (including refinances) (effective September 1, 2026). Checked .
  3. Appraisal Institute of Canada — For residential property owners (who pays, CUSPAP). Checked .
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