Costs & fees
Appraisal Fee
Fee for a third-party valuation of the property. Typically $300–$500. Required by the lender on most uninsured deals.
Lenders order a property appraisal to confirm the property is worth at least what you're paying. The appraisal is conducted by an independent licensed appraiser who inspects the home and runs comparable-sales analysis to produce a fair-market-value report.
For insured (CMHC, Sagen, or Canada Guaranty) mortgages, the insurer typically uses an automated valuation model (AVM) instead of a physical appraisal — saving the buyer the fee. For uninsured (conventional) mortgages, lenders almost always require a full appraisal, and you pay the cost — usually $300 to $500, sometimes higher for unique or rural properties.
Most lenders pay the appraisal fee themselves on prime products as a competitive perk; some pass it through to the borrower. Your mortgage agent will tell you upfront which one applies to your deal. The appraisal happens after your offer is accepted but before financing is firmed up — typically within the financing-condition window.
Source: FCAC — Closing costs