In Quebec, many homeowners turn to mortgage refinancing to consolidate debts, finance renovations, or invest in new projects. Before approving financing, however, banks and lenders almost always require a chartered appraisal. This step ensures that the loan amount matches the property’s true market value.
Why Lenders Request an Appraisal
Security for the lender: the institution wants to confirm that the property is worth at least the loan amount.
Fairness for the homeowner: you gain a clear and objective view of your property’s real value.
Maximized financing potential: if your property has appreciated, an updated appraisal can increase the financing available to you.
How the Appraisal Works in a Refinancing Context
Full property inspection – reviewing the overall condition, dimensions, and improvements.
Market analysis – comparing recent sales of similar properties in the same area.
Official report – providing a certified fair market value to both the lender and the homeowner.
Benefits for Homeowners
Potential to negotiate better loan conditions.
Reduced risk of overborrowing thanks to an objective valuation.
Enhanced credibility with financial institutions.
Conclusion
Mortgage refinancing can be a smart financial strategy, but it depends on one key element: a professional appraisal. By securing a chartered appraisal, you protect both yourself and the lender, while opening the door to better financial opportunities.
✍️ Key takeaway
At Evaluation Signature Inc., we bring over 10 years of expertise and recognized know-how to serve you. Visit our blog regularly for more practical tips and updates on the latest real estate trends.
