Mortgage Glossary

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Assessed Value

Local property taxes (which pay for items such as municipal services e.g. police, fire and ambulance departments, sewers, sidewalks etc.) are calculated based on the assessed value of your property. Appraisers working for the local tax authority will give each property an estimated value based on its approximate size and location.

These values are rarely accurate when it comes to fair market value, but are sometimes used by the lender (instead of a full appraisal) when the loan amount is low compared to the purchase price.

It should be noted that not all provinces / local governments use this system for determining property taxes.

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