Update on Appraisal Guidelines

IMPORTANT UPDATE: Appraisal Process

Click here to read the most recent updates from the Appraisal Institute of Canada regarding changes in response to the ongoing COVID-19 pandemic.

In summary, AIC has directed the following:

  • An immediate halt to interior inspections;
  • Limited exterior inspections;
  • Modified Full Appraisals (MFAs) to be completed as follows:
    • Full appraisal to be prepared with data on the property (interior and exterior) provided by some means other than full onsite inspection (WhatsApp, Facetime and/or reliable data sources (MPAC, MLS))
    • Interior/external photos to be obtained even if the provider is a third party to the appraiser
    • No interior inspection clause added to appraisals
    • The Appraiser MUST use a virtual tour of the property with the homeowner. Tour to start with external footage, followed by internal
    • The occupant of the home will take pictures of each room and submit to Appraiser
    • Virtual or conference call interview with the homeowner
  • Appraisers use the “Extraordinary Assumption & Limiting Conditions” section to the appraisal to note that due to COVID-19 they were not able to enter the property.

XMC APPROACH TO VALUATIONS

Option 1:
When available, a full appraisal of the property, including the interior inspection, conducted within 18 months preceding the application date, will be accepted in conjunction with a current MFA delivered through an approved AMC or an appraiser.

In these cases, we will follow existing LTV guidelines.

Option 2:
When a previously conducted appraisal cannot be obtained, the current MFA report delivered through an approved AMC or an appraiser can be accepted.

In these cases, we will reference an AVM and also limit maximum LTV to 75%. Please note that we may also require further reference to complete adjudication of each file.