Appraised Value

An appraised value is an estimate of market value prepared by a designated appraiser—commonly an AACI (Accredited Appraiser Canadian Institute) or CRA (Canadian Residential Appraiser) member of the Appraisal Institute of Canada—using recognized appraisal methodology. Lenders typically require an appraisal as part of mortgage underwriting to confirm the property's value supports the requested loan amount. The appraisal is distinct from the BC Assessment Authority's assessed value used for property tax purposes under the BC Assessment Act. Verify current appraisal standards and lender requirements with a BC mortgage broker or financial institution.

No. Appraised value is a market value estimate prepared by a private, designated appraiser (typically AACI or CRA) for a lender or client at a specific point in time. BC Assessment's assessed value, determined under the Assessment Act, RSBC 1996, c. 20, is used for property taxation and reflects the property's market value as of July 1 of the previous year. The two values can differ significantly depending on timing, methodology, and market conditions. Verify how each value applies to your transaction with a BC lawyer, notary, or licensed tax professional before acting.

No. Under the Property Transfer Tax Act (PTTA), RSBC 1996, c. 378, property transfer tax (PTT) is calculated on the fair market value of the property at the time of registration or on the greater of the purchase price and fair market value. The taxable value is not based on an appraiser's appraised value or BC Assessment's assessed value; it is determined by the Ministry of Finance based on the transaction details. Verify PTT calculations and exemptions—including the First-Time Home Buyer Exemption (up to $835,000 as of 2026-07-27—verify current) and Newly Built Home Exemption (up to $1,100,000 as of 2026-07-27—verify current)—with a BC lawyer, notary, or licensed tax professional before acting.

Yes, if the appraised value comes in below the purchase price and your lender's loan-to-value (LTV) ratio is not met. Mortgage lenders rely on appraised value to determine the maximum mortgage amount under federal and provincial lending guidelines; a shortfall may require a larger down payment or renegotiation of the purchase price. The Real Estate Services Act (RESA), SBC 2004, c. 42, does not regulate appraisal outcomes, but your licensee must disclose material latent defects that could affect value. Verify your financing conditions and options with your lender and BC lawyer or notary before acting.

Typically, the buyer pays for the appraisal as part of the mortgage application process, though the contract of purchase and sale or financing terms may specify otherwise. The appraisal fee is not regulated by the Real Estate Services Act (RESA), SBC 2004, c. 42, or BCFSA Rules; it is set by the appraiser or appraisal firm and varies by property type, location, and complexity. Verify the cost and payment arrangements in your mortgage pre-approval or commitment letter, and consult your lender or BC mortgage broker for details.

The Home Flipping Tax Act, SBC 2024 (effective January 1, 2025—verify current), calculates the flipping tax as a percentage of the income (profit) from the sale of a residential property held for less than 730 days (as of 2026-07-27—verify current), subject to exemptions. The tax is based on the difference between sale proceeds and adjusted cost base, not on an appraiser's appraised value. Verify eligibility, exemptions, and calculation rules with a BC lawyer, notary, or licensed tax professional before acting.

You cannot appeal an appraised value through a statutory tribunal, because it is a private opinion of value prepared for a lender or client, not a government assessment. If you believe the appraisal is inaccurate, you may request a reconsideration from the appraiser (providing additional comparable sales or property details), order a second appraisal, or switch lenders. If you wish to challenge BC Assessment's assessed value for property tax purposes, the appeal process is governed by the Assessment Act, RSBC 1996, c. 20, and heard by the Property Assessment Review Panel. Verify your options with a BC lawyer, notary, or licensed appraiser before acting.

No lender-required appraisal is needed if you are not financing the purchase. However, you may still choose to obtain an independent appraisal to confirm fair market value, satisfy a condition in the contract of purchase and sale, or support future estate, tax, or financing decisions. The Real Estate Services Act (RESA), SBC 2004, c. 42, does not mandate appraisals for cash transactions, but your licensee must provide you with material information affecting value. Verify whether an appraisal is prudent for your circumstances with a BC lawyer, notary, or licensed appraiser before acting.

Canada Mortgage and Housing Corporation (CMHC), a federal Crown corporation, and other mortgage insurers (Sagen, Canada Guaranty) use the lesser of the appraised value or purchase price to calculate the loan-to-value (LTV) ratio and determine the required mortgage insurance premium when the down payment is less than 20% (as of 2026-07-27—verify current). A lower appraised value reduces the maximum insurable mortgage amount and may increase the down payment needed to meet LTV limits. Verify current CMHC and insurer guidelines, premium rates, and property eligibility with your lender, mortgage broker, or the Financial Consumer Agency of Canada (FCAC) before acting.

A private appraisal may be submitted as evidence to support a property tax assessment appeal under the Assessment Act, RSBC 1996, c. 20, but the Property Assessment Review Panel is not bound by it. The Panel determines actual value (market value as of July 1 of the previous assessment year) based on all evidence, including BC Assessment's methodology, comparable sales, and appraisals. The appraisal must be prepared by a qualified appraiser (typically AACI or CRA) and address the correct valuation date. Verify appeal deadlines, evidence requirements, and procedures with a BC lawyer, notary, or property tax consultant before acting.