Toronto Home Appraisal: What the Appraiser Checks and Who the Report Is For

The short answer

A Toronto home appraisal is a written opinion of what a house or condo is worth on the open market, prepared by an appraiser after inspecting it and studying similar properties. CMHC describes an appraisal simply as an estimate of the value of the home and notes that your bank or credit union may require one at your expense.

Most owners meet an appraiser in one of two ways. A lender orders one because you are buying or refinancing. Or you hire one yourself because you need an independent number for a sale, an estate, a separation or a tax question. The inspection is the same in both cases. What changes is who the appraiser works for and who gets to see the report.

This post walks through what the appraiser looks at, how the value is worked out, who the report belongs to and how an appraisal differs from your MPAC assessment and from an agent’s valuation. It is general information. For a legal or tax question about your own situation, speak to a lawyer or accountant.

What an appraiser looks at during the inspection

The Appraisal Institute of Canada (AIC), the national professional association for real property appraisers, sets out what its members observe on site:

• the physical characteristics of the house and any outbuilding, such as a garage
• interior and exterior finishes and systems, for example heating and cooling
• the quality of the improvements
• any deficiencies or required repairs

The appraiser also collects the room layout, measurements of the dwelling, site improvements and details of any garage. Expect exterior photographs, which identify the property in the report. The AIC notes that under federal privacy law (PIPEDA) the appraiser must get the consent of the owner or occupant, in writing or verbally, before taking interior photographs.

The AIC says to plan for 20 to 40 minutes, depending on the size and features of the home. Its purpose is to gather enough information to describe the property properly, so it is a different job from the home inspection a buyer commissions to look for defects.

The questions you will be asked

The AIC lists the questions an appraiser is likely to ask. Having the answers ready saves time:

1. When the house was originally built.
2. The dates of any major additions or renovations.
3. Any listings of the property in the past 12 months, including private listings.
4. Any offers to purchase in the past 12 months.
5. Any sales of the property in the previous three years.

Keep a short list of work done with the year and, where you have them, permits and invoices. A finished basement or a new roof that the appraiser cannot see or date is hard to account for.

If you own in the City of Toronto and the paperwork for an addition or a basement has gone missing, Toronto Building holds drawing records of prior permit applications. You request them by emailing the City’s application form to bldrecords@toronto.ca, one application per property. The City aims to process requests within 30 business days and charges $76.98 per disclosure, effective January 1, 2026, so ask well before the appraisal is booked.

How the appraiser works out the value

Owners often ask for a number before the appraiser leaves. The AIC cautions that most of the valuation happens after the inspection, through an analysis of market conditions and activity that typically involves 3 to 10 or more comparable properties.

The AIC describes three approaches to value.

Approach	How it works	Use on a home
Direct comparison	Analyzes completed sales, listings or pending sales of properties similar to the one being appraised	The main method for houses and condos
Cost	Estimates the land and the building separately, then adds them together	Can support the value of a newer or unusual house
Income	Converts a property’s revenue and expenses into a present value	The AIC says it is typically not applied to residential property

The comparison is only as good as the comparables. In a Toronto neighbourhood such as Leaside, where few houses sell each quarter, there may be only a handful of recent nearby sales to compare and the appraiser’s adjustments for size, condition and features carry a lot of weight. That is also why a single headline figure, such as the averages on our Toronto house prices page, cannot tell you what one particular house is worth.

When a Toronto home appraisal is needed

The AIC lists the situations in which owners engage an appraiser. These are the ones most Toronto households run into.

Buying and refinancing

When you buy, the AIC says the approved mortgage is based on the appraised value and that it is the appraised value, not the purchase price, that the lender uses to set the maximum loan. If you pay well above the appraised value, you may not receive the full loan you were counting on. CMHC’s mortgage insurance rules are also built on value rather than price alone: CMHC defines loan to value as the ratio of the loan amount to the lending value of the property. Our post on the first time home buyer Ontario down payment explains how the down payment is calculated and the closing costs in Toronto post lists the appraisal among the other buying costs.

For sellers, this is worth understanding when you compare offers. Ask your agent whether an offer depends on the buyer’s financing and how firm that financing is.

Selling

The AIC suggests that an owner who wants to set a listing price can engage a designated appraiser for an independent opinion of value. You can also ask a listing agent for a comparable sales analysis, which is an opinion rather than a formal appraisal. Our sellers’ guide covers how pricing fits into the rest of the sale.

Estates, separation and tax

An appraisal is often about a date in the past rather than today. The Canada Revenue Agency (CRA) describes fair market value as usually the highest dollar value you can get in an open and unrestricted market between a willing buyer and a willing seller acting independently. The AIC notes that an appraiser can support capital gains reporting based on fair market value and that its designated appraisers are recognized in judicial and quasi-judicial settings, for example in a matrimonial division of property.

Executors can read how valuation fits into the process in our guide to selling an estate home in Toronto and in our post on selling a parent’s house after death and the taxes in Ontario. Couples who own a home together can start with selling a home after separation in Toronto. The lawyer or accountant on the file should decide whether a formal appraisal is required and as of which date.

Before a major renovation

The AIC points out that money spent on a renovation is not always returned in full when you sell and that an appraiser can estimate the value of the home with the planned work. That question matters to anyone weighing a renovation against a move, which our upsizing in Toronto guide discusses.

Who the appraisal report belongs to

This is the part that surprises people. The AIC explains that when an appraisal is done for mortgage lending, the homeowner is often required to pay the fee, but the appraiser’s client is the lender. The lender gives the appraiser its instructions.

Under the AIC’s Canadian Uniform Standards of Professional Appraisal Practice (CUSPAP), the appraiser keeps the client relationship confidential. The appraiser needs written authorization from the lender to release the report to anyone else, including the person who paid for it. Whether you receive a copy, whether or not the loan is approved, is a business decision for your lender or mortgage broker. Ask before the appraisal is booked.

If you need a report you can rely on yourself, for a sale, an estate or a legal matter, hire the appraiser directly so that you are the client.

Toronto home appraisal vs your MPAC assessment

The Municipal Property Assessment Corporation (MPAC) assesses and classifies every property in Ontario. The City of Toronto uses that assessment to calculate property tax. It is not a current market value.

• The date is fixed in the past. MPAC says the 2026 assessment is what the property would have sold for on January 1, 2016, in its current state and condition, including any major changes since then. The province postponed the 2020 Assessment Update because of the COVID-19 pandemic.
• It changes when the property changes. MPAC updates the assessment and mails a new notice after new construction or a major renovation.
• It has its own appeal route. The City of Toronto says to file a Request for Reconsideration with MPAC by the deadline printed on your Property Assessment Notice. If you disagree with MPAC’s recommendation, you can appeal to the Assessment Review Board within 90 days of the mailing date on it. The City says your property taxes must still be paid in full as billed while you wait. The AIC notes that in most provinces a designated appraiser can prepare an appraisal to support an owner who disagrees with the assessed value.

An appraisal, by contrast, values the home as of the date the assignment calls for. Our post on Toronto property tax explains how the assessment turns into your tax bill.

Choosing an appraiser in Toronto

The AIC grants two designations to appraisers who hold a degree from a recognized Canadian university and meet its other requirements:

• AACI (Accredited Appraiser Canadian Institute): qualified for valuation and consulting assignments on residential, commercial, industrial and other property types.
• CRA (Canadian Residential Appraiser): qualified for dwellings with no more than four self-contained family housing units. This CRA has nothing to do with the Canada Revenue Agency. The AIC says a report by a CRA member outside that scope must be co-signed by an AACI.

The AIC’s current standards are CUSPAP 2026, effective April 1, 2026. The AIC says compliance is compulsory on every professional services assignment. Its members are covered by a mandatory professional liability insurance programme. You can search the AIC’s Find an Appraiser directory by city, province, property type and service type, so you can search for appraisers who work in Toronto.

On cost, the AIC says the fee is not determined by the value of the property. It is generally a flat fee set by the complexity of the assignment and the number of hours required, so ask for a quote and the expected delivery date when you call.

Toronto home appraisal or valuation: what to do next

1. Decide why you need the number. A sale you are planning, a lender’s requirement and a legal or tax deadline call for different things.
2. If a lender is involved, ask who orders the appraisal, who pays and whether you will get a copy.
3. If you need a report for yourself, hire an AACI or CRA appraiser directly and tell them the purpose and the date the value is needed for.
4. Gather the construction date, a list of renovations with years and any recent listings or offers before the inspection.
5. For a sale, compare the appraiser’s opinion or an agent’s comparable sales analysis with what you expect to net after costs. Our posts on selling a house in Ontario commission and selling a house in Ontario taxes cover the two biggest deductions.

If you are thinking about selling a home in Toronto and want a starting point, our free home valuation is an opinion of market value from comparable sales, meant for planning. It is not a formal appraisal and a lender, a court or an estate may need one instead. To talk through which you need, contact us.