Who orders this
- Owner-builders and custom home clients with a draw mortgage
- Builders and contractors waiting on progress advances
- Lenders and brokers managing construction loans
- Buyers of a new build whose lender needs an as-complete value
New construction appraisal: valuing what is not built yet
Before a construction loan is approved, the lender needs to know what the finished home will be worth. The appraiser reviews the plans, specifications, construction budget and lot, then estimates the value as if complete using sales of comparable finished homes. Many lenders also want the land value and the cost to build, so they can compare the loan against both.
- Architectural or builder plans and specifications
- A detailed construction budget or contract
- Proof of land ownership or the purchase agreement
- Building permit, if issued
- The lender’s draw schedule and inspection form, if any
How construction draw inspections work
Construction mortgages usually release money in stages. Before each draw, the lender asks for a progress inspection that confirms what is complete, often as a percentage of the total project, and whether the remaining budget is enough to finish. The appraiser visits the site, compares the work in place with the plans and reports back on the lender’s form or in a short report.
Ordering each draw through AppraisalDesk keeps the history in one Client Hub file, so the lender, broker and builder see the same status. Request the next inspection when a stage is genuinely finished; an inspection booked too early can mean a smaller advance and an extra visit.
Frequently asked questions
What is a construction draw appraisal across Canada?
It is a progress inspection ordered before a lender releases the next advance on a construction mortgage. The appraiser confirms the work completed against the plans and budget, often expressed as a percentage, so the lender can advance funds that match the value in place.
How many draw inspections will I need?
It depends on the lender’s draw schedule, which commonly has several stages such as foundation, framing and lock-up, drywall and completion. Your lender or broker will confirm the stages, and each one usually needs its own inspection.
Can a new house be appraised before it is built?
Yes. An as-complete appraisal estimates the value of the finished home from plans, specifications and comparable sales. The lender uses it to size the construction loan. Detailed, accurate plans and a realistic budget produce a more reliable value.
Is there a final inspection when the house is finished?
Usually. Lenders typically want a final inspection confirming the home is complete, and sometimes an updated value, before the last advance or the conversion to a regular mortgage. An occupancy permit is often requested at the same time.