Send the property details to your lender
Ask whether the lender needs an appraisal or other property review.
- Confirm who arranges it and when the result is expected.
- An agreed purchase price does not settle the lender’s valuation.
More on send the property details to your lender
Keep your financing deadline visible.
Ask what happens if the value is lower
Understand your options before the deadline arrives.
- Ask your lender how a lower valuation would affect the cash you need.
- List any remaining approval conditions.
More on ask what happens if the value is lower
Discuss gaps or delays with your lender, representative and lawyer before making another commitment.
The basics
How the lender looks at the home
After your offer is accepted, the lender studies the property, not just you. CMHC says a home’s value depends on its features, such as size, location, age, quality and the number of bedrooms and bathrooms. Value is a snapshot of what similar homes are selling for now.
The lender may hire a professional appraiser or use its own review process. Either way, CMHC says property value is key to how much mortgage you will be offered. Final approval is the lender’s confirmation, after this review, that the money will be there on completion day.
Why it matters
Why a lower valuation can change your cash needs
If the lender values the home below your price, it may lend less than you planned. CMHC notes that when the value does not support the loan, you should talk to your lender and realtor about options. BC’s real estate regulator warns that lenders sometimes raise appraisal needs late, so suggests building an appraisal subject into the contract.
How it works
From accepted offer to final approval
Send the contract the same day
Give your lender the signed contract, the listing and any strata documents. Every day of the financing condition counts.
Ask how the property will be reviewed
Will an appraiser visit, and who arranges access? Who pays, and when should you expect the result?
Answer requests quickly
Lenders may ask for updated pay stubs, a gift letter or proof of funds. Late paperwork is a common reason a deadline gets tight.
Read the commitment letter
The final approval lists conditions. Check the amount, rate, term and any items still needed before funds are released.
Talk before you remove the subject
Removing a financing condition, sometimes called subject removal, means you are committing to buy. Confirm with your lender and lawyer or notary first.
Plan for a shortfall
Know where extra cash could come from if the loan comes in lower. Do this before the condition deadline, not after.
Avoid these
Financing mistakes near the deadline
Treating price as value
The price is what you and the seller agreed. The lender’s value is a separate opinion. They do not always match.
Removing subjects on a verbal yes
Wait for the written commitment and read its conditions. A phone call is not final approval.
Leaving no room in the timeline
A short financing condition leaves little time to fix a gap. Ask your realtor what length suits the property.
Forgetting strata documents
For a strata lot, the lender may want the Form B Information Certificate or other records. Ask early so the review is not delayed.
Example
If the value comes in low
Hypothetical round numbers. Suppose your lender caps the loan at 80% of the lower of price or its value. Lenders set their own rules, so ask yours how it calculates.
| Purchase price | $800,000 |
|---|---|
| Planned loan at 80% | $800,000 × 0.80 = $640,000 |
| Planned down payment | $800,000 − $640,000 = $160,000 |
| Lender’s value | $780,000 |
| Loan at 80% of value | $780,000 × 0.80 = $624,000 |
| Cash now needed | $800,000 − $624,000 = $176,000 |
| Extra cash to find | $176,000 − $160,000 = $16,000 |
The price owed to the seller does not drop because the value is lower. That is why the financing condition and early planning matter.
Questions to ask
Questions before your financing deadline
Your lender or mortgage broker
- Will you order an appraisal, and when will I see the result?
- How will you calculate the loan if the value differs from the price?
- What conditions remain on my commitment?
- Is there anything about this property that concerns you?
Your realtor and lawyer or notary
- How long is my financing condition, and can it be extended?
- What happens if I cannot remove it in time?
- What are my options if the value comes in low?
FAQ
Common questions
Will an appraiser always visit the home?
Not necessarily. Lenders decide how to review each property. Ask yours whether an appraiser will attend and who arranges access with the seller.
What if the appraisal is lower than my offer?
CMHC says to talk to your lender and realtor about options. Those can include bringing more cash or, within your financing condition, other steps your lawyer or notary can explain.
Who pays for an appraisal?
It varies by lender and situation. Ask your lender before it is ordered so it fits your closing cost plan.
Can a lender refuse after pre-approval?
Yes. BC’s real estate regulator notes the mortgage can be denied if the lender believes the property is not worth the asking price, or if your finances change.
A practical example
Make the review timeline visible
Put the expected property review beside your financing-condition deadline and ask who will communicate the result.
- If additional information is needed, clarify who supplies it and when.
- Ask your lender what options would exist if its assessment differs from your expectations.
Work through the possibilities before treating the funds as confirmed.
A detail to keep in mind
A seller’s price and a lender’s assessment serve different purposes. Avoid assuming they will always align.
Official information
Start with these resources, then confirm the details for your property and circumstances.
Government of Canada: mortgage pre-approvalCMHC: Your home value and the mortgage applicationBC Financial Services Authority: Are you ready to purchase?BC Financial Services Authority: Offers to sellersReference review: October 6, 2026