40 | spring 2018 cmba-achc.ca CmB magazIne
m
any brokers and lenders may
have noticed a significant
change in 2018 to the way
appraisers handle Market Rent
Reports or estimates (Rental Letters, Market
Rent Estimates within reports and Schedule
"A" rental estimates).
Appraisers have experienced a major
change in the scope of service from their
governing body (the Appraisal Institute of
Canada, Professional Practice Committee)
and as a result of the new changes (OSFI B20
affecting appraisals) to what was formerly
known as a Market Rental Estimate Letter.
Appraisers are seeing an increase in
the demand from lenders and brokers
for additional rent estimates (income
qualification and income generation
estimates from the property) on most of
the files they deal with. e additional steps
toward mortgage qualification to help an
applicant meet mortgage payment obligations
have materialized in the current lending
environment (due to OSFI B20) in the form of
appraiser-qualified Market Rental Estimates,
which themselves take many different forms:
n
Market Rental Report with inspection
(no appraisal completed);
How Stricter
Rules Affect
Appraisals
new standards require appraisers to take
more time to make thorough rental estimates,
just as demand for the service is increasing
By DAniel m. Jones, AAci, P.APP., ri, PresiDent, cAmPBell & PounD reAl estAte APPrAisers
