Your property tax notice shows one value, a listing site shows another, and an appraiser may land on a third. When you’re borrowing against your home, it helps to know what each number means, and which one the lender will actually use.

Assessed value

Your municipality assesses your property to calculate property taxes. In Alberta, assessments aim to reflect market value as of a set valuation date in the previous year, using mass appraisal of many properties at once rather than a visit to your home. It’s useful as a rough reference, but it can be out of date and won’t reflect your specific upgrades or condition.

Do lenders use it? Generally not as the value for lending, though they may look at it.

Market value

The price your home would likely sell for today, to a willing buyer, after reasonable time on the market. It’s what you’re really trying to estimate, but nobody knows it exactly until a sale happens. Online estimates and agents’ opinions are attempts to estimate it.

Do lenders use it? Indirectly, through an appraisal.

Appraised value

An independent appraiser’s professional opinion of market value, prepared for the lender after looking at your home and recent comparable sales. See how appraisals work.

Do lenders use it? Yes. This is the number that sets how much you can borrow.

Why they differ

  • Assessments are based on an earlier valuation date and broad models.
  • Online estimates can’t see inside your home.
  • Appraisers rely on actual recent sales, and are often conservative where sales are scarce.
  • Markets move, up or down, between when each number is set.

What this means for your plans

When estimating your equity, start with a conservative value. If the plan only works at the highest number you’ve seen, it may not survive the appraisal. See how to calculate your home equity.

Get a number you can plan around

A licensed mortgage broker can give you a realistic range based on recent sales and the lenders’ typical approach.

This article is general information, not financial or legal advice. Lender requirements, rates and fees change and depend on your situation.