Why You Should Get a Home Appraisal Before Renewing or Refinancing With Your Bank

tejveer198
Oct 2
2 min read

When it comes time to renew or refinance your mortgage, many homeowners assume the bank’s offer reflects the true value of their property. However, relying solely on your bank’s estimate could cost you thousands. A professional home appraisal provides an accurate, independent assessment of your property’s market value, helping you make informed decisions.

In this article, we’ll explore why a home appraisal is essential before renewing or refinancing and how it can benefit you financially.

What is a Home Appraisal?

A home appraisal is a professional evaluation of your property’s market value conducted by a certified appraiser. It considers:

Recent sales of similar properties in your area (comparables)
Local market trends and neighbourhood demand
Property condition, upgrades, and features

Unlike online estimators or bank assessments, a certified appraisal is objective and reliable, recognized by lenders, lawyers, and financial institutions.

1. Ensure You’re Not Overpaying on Your Mortgage

When refinancing or renewing, your bank may base the interest rate and terms on an estimated value rather than your property’s actual worth.

If your home is worth more than the bank assumes, you could qualify for better refinancing terms or a higher loan-to-value ratio.
If it’s worth less, you avoid borrowing too much and taking on unnecessary financial risk.

2. Leverage Your Equity for Better Terms

A home appraisal helps determine your available equity, which can:

Reduce your interest rate when refinancing
Increase borrowing power for home improvements, debt consolidation, or investments
Provide leverage to negotiate more favourable mortgage terms

Without an independent appraisal, you may be leaving money on the table.

3. Avoid Surprises During Renewal or Refinance

Banks often conduct their own internal assessment, which may not reflect the current market conditions accurately. A professional appraisal ensures:

You know your property’s true market value
Your mortgage renewal or refinance is based on solid data
You’re prepared for negotiations with your lender

4. Identify Home Value Opportunities

A professional appraiser can highlight:

Upgrades or improvements that increase value
Market trends in your neighborhood you might not be aware of
Areas for potential renovations that could boost equity before refinancing

5. Peace of Mind and Financial Confidence

Knowing your home’s exact value gives you confidence when:

Renewing your mortgage
Refinancing to access funds
Making major financial decisions tied to your property

A certified appraisal protects you from making costly mistakes and strengthens your financial strategy.

When to Get a Home Appraisal

Consider scheduling an appraisal when:

Your mortgage is up for renewal within the next 3–6 months
You’re planning to refinance for better terms or extra funds
You’ve made significant improvements or renovations to your property
Market conditions in your area have changed significantly

Why Choose a Certified Appraiser?

At Walson Consulting Inc., we provide independent, certified home appraisals across the GTA. Our reports are:

Accurate and reliable
Recognized by banks, lenders, and lawyers
Prepared according to CUSPAP standards

Whether you’re renewing, refinancing, or simply curious about your home’s value, a professional appraisal ensures you make informed financial decisions.