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Mortgage Broker News | 15 Jun 2011, 08:59 AM Agree 0
A seasoned Alberta broker is pointing to increasingly “low valuations” since new mortgage rules were ushered in, concerned appraisers for default insurers have gotten ahead of themselves and any future correction in the housing market.
  • Zoltan Padar of MortgagePRO Ltd. | 16 Jun 2011, 08:10 AM Agree 0
    We have met this many times, most recently CMHC appointed appraisal was 15% lower than GE appraisal. Gets confusing and discouraging.
  • low ball appraisals | 16 Jun 2011, 09:12 AM Agree 0
    I have seen this before. When a market turns all the appraiser get conservative. I have especially seen the low ball appraisals come in when we have to use solidify or Nas to order as the appraiser gets to hide behind the computer. times they are a changing...
  • Marlene | 16 Jun 2011, 12:11 PM Agree 0
    I agree. I have lost a number of deals or have had to recalculated refinance LTV's because NAS or Solidifi's appraisals have come in way 'too low' - in fact 'much lower than even the City's assessments (in some cases as much as $35K lower) I just heard on Global TV that inspite of our house prices being a little 'lower' we were still had the highest prices for real estate in Alberta. Year over year, a single family home in Calgary is only about 5% less than a year ago. So I agree that the CMHC appraisers are undervaluing properties by a lot. It would be great if the lenders went back to the brokers being allowed to use "private appraisers" again. It just seemed more realistic appraisals were being done.
  • 34 years Experience | 17 Jun 2011, 06:01 AM Agree 0
    The Calgary and Vancouver markets continue to pose a huge question as to the sustainability of prices over all. If an Appraiser does not have a comparable sale in that price range he is required to identify that as well. We are in tough economic times and Alberta is leading the country in defaults. It is not fair to place blame on appraisers they are protecting the security to the lender and not here to make our jobs easier. Not everyone needs a Million Dollar home and Insurers are absolutely correct in being conservative in these times. Clients have to put more funds down to spend a million dollars or be prepared to buy a home that is more suitable without mortgage insurance.
  • rob dotzert | 17 Jun 2011, 06:05 AM Agree 0
    Amen, this appraisal thing is getting ridiculous in Ontario as well.I think its about time we all got together and stopped using lenders that use these third partu appraisal companies.They ask for the money up front and low ball every one.
  • Nick Hamblin @ Ideal Mortgage | 20 Jun 2011, 10:30 PM Agree 0
    What we see out east with the 3rd party paid upfront appraisals is the 5 minute variety. Five minute visit to residence and as little time as possible searching out comparable s, results in unrealistic valuations here in the east as well
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