Financing costs
Property appraisal
By Bo Yu, Broker, Right at Home Realty, Brokerage · Verified/updated August 2026
An appraisal is an independent opinion of the property's market value, ordered by your lender to confirm the security behind the mortgage. It protects the lender, not you — you usually receive a copy only on request.
On many insured (high-ratio) mortgages the insurer's automated valuation stands in for a physical appraisal, and no fee is charged. On conventional mortgages, private lending, rural properties and unusual homes, a full appraisal is common.
- Who charges it
- An accredited appraiser, arranged by the lender or broker.
- Who normally pays
- Usually the buyer, unless the lender absorbs it as part of the offer.
- When it's paid
- During the financing condition, before closing — often on a credit card at the time of booking.
- Cash or financed
- Cash out of pocket before closing.
- Typical range
- $300–$500 when the lender charges it to you
How it's calculated — and why it varies
Price depends on the property, not on the loan amount.
- Standard Ottawa urban home: $300–$500 including HST.
- Rural, acreage, multi-unit or unique properties: $500–$900.
- Desktop or drive-by appraisals cost less than a full interior inspection.
- A second appraisal, if you dispute the first, is at your cost.
Exemptions, refunds and when it doesn't apply
- Frequently waived on insured mortgages where the insurer accepts an automated valuation.
- Some lenders rebate the appraisal fee if the mortgage funds with them — ask before you pay.
- It is not a home inspection and says nothing about condition.
- In a rising market, a low appraisal can shrink your approved loan and increase the cash you need — one of the reasons a firm offer without financing in place carries real risk.
A real Ottawa example
A buyer putting 20% down on a $650,000 home in Westboro is asked for a $400 appraisal; the lender rebates it on funding, so the true cost is zero.
A buyer putting 20% down on a 5-acre property near Carp pays $750, and waits an extra week for the report — worth budgeting for in the financing condition, not just the dollars.
How this shows up in the calculator
The calculator shows an "Appraisal" row only when your down payment is 20% or more, since insured purchases usually avoid the fee. You can zero it out mentally if your lender confirms they'll cover it.
Open the calculatorOfficial sources — verified/updated August 2026
Rules and rates change. These are the first-party pages this one was checked against; confirm anything that matters to your purchase directly with them.
Every figure on this page is a planning estimate for general information only, based on the assumptions shown, and are not legal, tax, mortgage or financial advice or an offer of credit. Actual rates, payments, taxes, fees and values vary — confirm the numbers with your lender, lawyer or accountant before relying on them. Full disclosures.
This page is general information about how a cost works in Ontario, not legal, tax, mortgage or accounting advice, and not a quote. Your lawyer, lender and accountant confirm what actually applies to your purchase.
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