Who orders this
- Homeowners consolidating debt or funding renovations
- Mortgage brokers arranging a refinance or switch at renewal
- Lenders reviewing an equity take-out request
- Couples restructuring a mortgage after a buyout
Why the refinance home appraisal matters
In a refinance there is no purchase price to anchor the value, so the appraisal does all the work. In Canada, conventional refinances are generally limited to 80% of the appraised value, minus what you still owe. A difference of a few thousand dollars in value can change how much cash you receive or whether the plan works at all, which is why an accurate, well-supported report matters.
- Paying off higher-interest debts
- Funding renovations or a down payment on another property
- Buying out a former spouse or co-owner
- Moving to a different lender at renewal with new terms
Helping the appraiser see your home’s value
You cannot influence the appraiser’s opinion, but you can make sure nothing is missed. Have a list of improvements with dates and approximate costs, permits for additions or finished basements, and access to every room, the garage and the mechanical areas. Tidy, accessible spaces make for a smoother visit. Let us know about tenants so the appraiser can arrange entry respectfully.
Good to know in Ontario
In Ontario, MPAC assesses property for municipal tax. Its assessed value is not an appraisal, and lenders, courts and the CRA rely on an appraisal of market value on a specific date.
Frequently asked questions
Do I need an appraisal to refinance in Hamilton?
Usually, yes. A refinance changes the loan amount, so the lender wants a current value. Some lenders use an automated valuation for low-risk files, but many require a full appraisal, especially when you are taking equity out. Your broker or lender will tell you which applies.
How much equity can I take out when I refinance?
Conventional refinances in Canada are generally capped at 80% of the appraised value, less your existing mortgage balance. Lender policies and your income still apply. The appraisal sets the starting point for that calculation.
What if my refinance appraisal comes in lower than expected?
You may be able to borrow less, adjust the plan or look at other lenders. Ask your broker about options. If you spot factual errors, such as missing living space, provide evidence and ask the lender about a reconsideration of value.
Can I order my own appraisal for a refinance?
Yes, provided the report names the lender who will rely on it. Many homeowners start the order and share the tracking link with their broker. If you have not chosen a lender yet, ask your broker before ordering so the report is addressed correctly.