Second mortgage FAQs by Kevin Slemko

Second mortgages: Popular FAQs

Second mortgages can be useful - but it's important to know what you're getting into As appraisers, it's not unusual for us to be asked to provide a valuation for a property when a second mortgage is being considered. Because second mortgages are, as their name suggests, 'second in line' to be repaid after the first mortgage, the amount of equity in the property is even more crucial than for a first mortgage. Lenders want to be assured that in…...
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Kevin Slemko AACI appraiser on Canada mortgages
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Mortgages in Canada: A range of options

It's best to understand your options before you shop If you've been thinking about buying a home in Canada, you've probably also been thinking about mortgages. If you've ever spoken to anyone at your bank or other financial institution about mortgages, you probably know there are a sometimes-bewildering number of options. But what do they all mean? Here, we break down your choices, and provide a high-level outline of the differences. Conventional mortgages This is probably what most people think…...
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FAQs for appraisals for real estate
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Appraisals 101

What you should know about the appraisal process We know that whether you're a buyer or a seller, the appraisal process - especially for residential or agricultural properties - can be nerve-wracking. Here are answers to some of the questions we get asked most often. Why do I need an appraisal? Contrary to popular belief, appraisals aren't conducted because the bank (or anyone else involved in the transaction) is suspicious or looking for problems. It's simply a way for a…...
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Kevin Slemko AACI appraiser hamilton

How do appraisals work?

Residential appraisals are more straightforward than you think You've sold your house, but your offer is conditional upon an appraisal by the bank. What does this mean? The buyers of your home have applied for a mortgage from a bank, with the house used as collateral. The bank gets an appraisal to ensure that there's enough value in the home to cover the mortgage in the event the buyers default. (Depending on the financial institution, the client and the economic…...
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Kevin Slemko of Midtown Appraisal Group FAQs

Appraisals: The 5 questions we’re asked most often

For many years, as a practicing appraiser, I didn't have a huge amount of contact with homeowners or residents. A financial institution would call with an appraisal request, I'd make arrangements with the real estate agent to pick up the keys or access the lockbox, and do the inspection when the owners or residents were at work. It was left to the real estate agent or mortgage provider to explain the appraisal process to their clients. But these days, more…...
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how are appraisals created

What goes into an appraised value?

It's not just a comparison to the house next door. It happens to every appraiser, often once a week: Someone involved in the property buying and selling process says something like "Yeah, this appraisal won't be that hard. The house across the street sold a month ago and it's pretty much the same layout, so we expect the value of our property to be about that price - well, a bit more probably, since prices are going up so fast!"…...
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Process of home appraisals by Midtown Appraisal Group

Home appraisals step by step

No one loves them, but they're not that bad Whether you're a homeowner looking to refinance your mortgage, a home buyer with your heart set on the dream home you finally found, or a home seller hoping that the conditional offer you got will finally firm up: Sooner or later there'll be a need for a home appraisal, and you'll spend at least a little time worried about the process. But you shouldn't worry so much. Appraisers aren't going to…...
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Kevin Slemko AACI on the problem of overimprovement

“But that bathroom cost me $27,000!”

When valuations don't reflect the money the homeowner spent I hadn't been an AACI for very long when it happened: I was doing an inspection of a pretty standard, older 3-bedroom bungalow outside of Hamilton, and the homeowner insisted I see the master bathroom first. "You have to see this!" he said, leading me toward the back of the house. When I got to the bathroom door, I guess my face didn't register the amazement he expected, because he started…...
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Kevin Slemko AACI appraiser
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Appraisal delays driving you bonkers?

There are a bunch of reasons why they're happening. If you've been involved in the sale of a residential property in Ontario in the past 3 years - whether as a vendor, purchaser, real estate agent, mortgage broker or lawyer - you know that residential appraisals seem to take longer than they used to. Unfortunately, the current extended timelines for residential appraisals are a result of several different factors, not all of which are easily solved. However, the more you…...
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Midtown Appraisal Group on the current real estate market

House prices in Ontario: Do your research

It's not unusual to be thinking about moving. Whether you've been working from home, are an essential worker, or have been furloughed, you - like most Canadians - have probably been spending a lot more time at home than usual in the past few weeks. And it's funny how spending so much time looking at the same four walls gets you thinking about what it'd be like to move. Depending on who you talk to, now is either a 'great'…...
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