Property Value
How We Value a Property for a Private Mortgage
The value we lend on is our own read of what your property is worth today, as it stands. It may not match your own figure, your appraisal or a listing price. This page explains what we look at, what you can send to support the value, and when an appraisal is required.
How does Stonefield Capital value a property for a private mortgage?
Stonefield Capital lends on the current as-is value of the property, as its own underwriting reads it. The as-is value is what the property is worth today, as it stands. Stonefield Capital does not lend on an as-complete value or an as-approved value. Our read of the value can differ from the owner's own figure, from an appraisal and from a listing price.
Does Stonefield Capital need an appraisal for a private mortgage?
Stonefield Capital's answer depends on the product. Stonefield Ace requires an appraisal from Stonefield Capital's approved list. On Stonefield Flex, pictures and videos of the property with its details can replace an appraisal. On Stonefield Lifestyle Mortgage, a no-payment private mortgage, the borrower is told at the start if the file needs a formal appraisal.
Stonefield Capital (FSRA mortgage brokerage licence #13722, with administration through Stonefield Mortgage Administration Inc., FSRA licence #13636) lends on the current as-is value of an Ontario property, as its own underwriting reads it. Stonefield Capital does not lend on an as-complete or as-approved value. The value Stonefield Capital lends on can differ from the owner's own figure, from an appraisal and from a listing price. A borrower can support the value with a recent appraisal, nearby sales, and pictures and videos of the property with its details. Stonefield Ace requires an appraisal from Stonefield Capital's approved list. On Stonefield Flex, pictures and videos of the property with its details can replace an appraisal. Stonefield Capital lends in Ontario only.
Step 1
What Stonefield Looks At: the Current As-Is Value
We lend on the current as-is value from our own underwriting. The as-is value is the property as it stands today.
A value that depends on finished work is an as-complete value. A value that depends on a planning approval is an as-approved value. We do not lend on either one.
Our read of the value is our own. It can differ from your own figure, from an appraisal you already have and from a listing price.
Your own figure is an estimate, and owners' estimates often run high. At a first read, we do not decline a file on your figure alone. We tell you what looks tight, and we ask for what confirms the value.
Loan-to-Value Guidelines by Property Type
Loan-to-value is the total of the mortgages on the property, including the new one, measured against the value we lend on. The ranges below are guidelines, not rules.
| Property type | Loan-to-value guideline |
|---|---|
| Liquid residential (a home in a market where homes sell readily) | Generally up to 65% to 70% |
| Rural property | 50% to 55%, lower the more remote the property is |
| Cottages | 50% to 60% |
| Jumbo loans | 50% to 60% |
| Raw or unentitled land | Near 50% of the as-is value, when we lend on it at all |
We do not lend on leased land. That is a rule, not a guideline. For cottages and jumbo loans, the guideline is about liquidity: how quickly a property of that kind and value sells. Where properties of a type rarely trade, the guideline is lower again.
Step 2
What You Can Send to Support the Value
If you think the value is higher than a first read suggests, send what supports it. Your broker can send it with the file, or you can send it after we call you back.
A recent appraisal
A recent appraisal report on the property, if you have one.
Nearby sales
Recent sales of similar properties close to yours.
Pictures and videos of the property
Pictures and videos with the details: the number of bedrooms and bathrooms, the square footage, and the basement.
Step 3, no-payment mortgage only
Before Each Anniversary Draw: the Value Is Re-Confirmed
Stonefield Lifestyle Mortgage, a no-payment private mortgage, advances a draw on each anniversary of the mortgage.
Before each anniversary draw, we re-confirm the property's value with our own review.
The draws continue only while the balance stays at or under the product's cap, and the cap is measured against the as-is value from our own review.
How the no-payment private mortgage works →Step 4
When an Appraisal Is Required, by Product
- Stonefield Ace
- Stonefield Ace lends in the Greater Toronto Area only. An appraisal is required, and it must come from Stonefield Capital's approved list of appraisers.
- Stonefield Flex
- Pictures and videos of the property with its details (bedrooms, bathrooms, square footage and the basement) can replace an appraisal.
- Stonefield Lifestyle Mortgage, a no-payment private mortgage
- The value is the as-is value from our own underwriting review. If the file needs a formal appraisal, you are told at the start.
Approved appraisers for Stonefield Ace
How a Construction File Is Valued: in Stages Against the As-Is Value
We fund construction in draws against the as-is value at each stage, not against the as-complete value. The total is not advanced on day one.
Until the foundation, framing and roof are complete, we treat the property as land, and we set the land value ourselves.
A purchase price is not the land value. A property bought to be knocked down was priced with the house on it.
Construction loans →Questions About Property Value
Why is Stonefield Capital's value different from my appraisal?
Does a listing price set the value Stonefield Capital lends on?
Will Stonefield Capital lend on the value after my renovation or build?
Are Stonefield Capital's loan-to-value ranges fixed rules?
Does Stonefield Capital lend on leased land?
Does Stonefield Capital lend outside Ontario?
Talk to Someone About Your Property's Value
Tell us about the property and what you need, and we will call you back.
Related pages
Borrower guides
Services
Borrowers
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