Every mortgage begins with a conversation.
One of the first questions many clients have is what their home may be worth—and their expectations may not always align with its current estimated value.
Whether they’re looking to understand their available equity or simply have a different value in mind, having additional property information early can help ground the conversation.
The answer can influence everything from refinancing options to available equity, but in the early stages of a transaction, there isn't always a formal appraisal to rely on.
That's where an Automated Valuation Model (AVM) can help.
Using an AVM early in the process gives brokers an estimated property value to help establish a clearer starting point for every deal and support more informed conversations with clients from the beginning.
Clients don't expect brokers to have every answer immediately. They do expect informed advice.
An AVM provides an estimated property value using available property and market data, giving brokers additional context during early conversations about renewals, refinances, and transfers. That information can help shape discussions about available equity, set realistic expectations, and prepare clients for what comes next.
It's not about making lending decisions. It's about starting the conversation with greater confidence.
An Automated Valuation Model (AVM) is a digital estimate of a property’s market value based on available property and market data. When sufficient property data are available, an AVM can provide an instant estimate, giving brokers timely insight into a property’s potential value. However, some properties, including unique or rural properties, may not have sufficient data to generate an AVM.
The AVM available through Broker Tracker uses real estate data, such as comparable sales, property characteristics, and price trends, to estimate a property’s value. For brokers, it’s a practical tool that provides additional property information to support early client conversations and build a clearer understanding of the transaction before it moves forward.
AVMs and appraisals play different roles depending on the transaction.
For mortgage brokers using the AVM available through Broker Tracker, the estimated value is for informational purposes and can help support early client conversations. For lender valuations, however, an AVM may be used instead of a full appraisal in some cases, depending on the lender’s requirements.
For brokers, an AVM provides additional context about a property’s estimated value before moving a file forward. That information can support conversations about refinancing, available equity, or what clients should expect as the transaction progresses.
A traditional appraisal plays a different role. When required by a lender, it provides a detailed assessment of a property’s value, including factors that an AVM can’t measure, such as the home’s condition, recent renovations, or other physical characteristics.
For brokers, an AVM can provide an early estimate that helps inform client conversations and set expectations. When sufficient property data are available, the AVM provides an estimated property value that can help brokers better understand the property before moving a file forward. If an AVM cannot generate a suitable estimate, additional valuation may be needed.
Insurance by FCT Insurance Company Ltd. Services by First Canadian Title Company Limited. The services company does not provide insurance products. This material is intended to provide general information only. For specific coverage and exclusions, refer to the applicable policy. Copies are available upon request. Some products/services may vary by province. Prices and products/services offered are subject to change without notice.
®Registered Trademark of First American Financial Corporation.