#HamOnt Real Estate
Your local real estate blog by your trusted Hamilton real estate professional.
Monday, 9 November 2026
Market Media Monday - November 9, 2026
Saturday, 7 November 2026
When Appraisals Go Bad
Your bank or mortgage broker will need a copy of the Agreement of Purchase and Sale—the formal name for the contract we usually call “the offer.” From there, your application goes through several approval steps behind the scenes.
One of those steps may be a formal property appraisal. The lender wants to make sure the property provides adequate security value for the mortgage. That helps protect it from lending too much, whether the purchase price reflects an enthusiastic buyer, a bidding war, or outright fraud.
An appraiser has specialized training in assessing real estate value and must meet the lender’s requirements. Lenders commonly select from their own particular approved appraisers or appraisal companies.
The appraiser considers the property and relevant market evidence, including comparable sales, making adjustments for differences such as size, condition, location, and features. They don’t “set” the market value so much as provide an independent opinion of what the property is worth based on real world evidence.
As a buyer, you’re probably less concerned with the calculations than with the result: does the appraisal support the price you agreed to pay?
If it comes in low, you could have a financing gap.
Suppose you agree to pay $700,000, but the lender accepts an appraised value of only $550,000. It will generally calculate its maximum mortgage using that lower value, subject to its lending requirements and your financial qualifications.
If the lender will advance 80% of $550,000, that means a $440,000 mortgage. You would need to provide the remaining $260,000 yourself, plus closing costs. That’s the $150,000 difference between the purchase price and appraised value, plus a $110,000 down payment on the appraised value.
Your required down payment increased by $120,000 from the $140,000 you were planning. That can be an unpleasant surprise—especially if you stretched yourself on your offer to win a bidding war and left out the financing condition.
A mortgage pre-approval doesn’t eliminate this risk. The lender still needs to approve the particular property and purchase. Without a financing condition, or after you’ve waived it, you may be contractually committed even if the expected mortgage doesn’t materialize. Failing to close could put your deposit at risk and expose you to a claim for additional damages.
So, can you challenge a low appraisal?
You can ask your lender or mortgage broker about a review, particularly if there are factual errors or relevant comparable sales that may have been overlooked. But getting the value revised isn’t guaranteed.
Appraisal involves professional judgment, so another lender’s appraisal might produce a different result. Exploring another lender may be an option, but it takes time, may involve additional costs, and offers no assurance of a better outcome. With a closing date approaching, that can mean considerable stress and scrambling.
My advice: whenever possible, include a financing condition and confirm satisfactory financing for the specific property before removing it. If you choose to buy without one, make sure you understand the risk and have the resources to cover a potentially substantial shortfall.
Tuesday, 3 November 2026
Terminology Tuesday: Prepayment Penalty
A prepayment penalty is a fee your lender may charge if you pay off your mortgage before the end of its term, switch lenders early, or make extra payments beyond what your mortgage agreement allows. That can include paying off the mortgage when you sell your home.
The key word here is term. If you have a five-year mortgage term with a 25-year amortization, paying it out during those five years could trigger a penalty—even though you’ve always made your payments on time.
How much could it cost?
Potentially thousands of dollars. Common calculation methods include three months’ interest or the interest rate differential (IRD), which uses a comparison of interest rates over the time remaining in your term. The calculation depends on your mortgage contract and lender, so don’t assume it will be a small, fixed fee.
Does every extra payment trigger a penalty?
No. Many closed mortgages include prepayment privileges, allowing specified extra payments without a penalty. Open mortgages allow early repayment without a prepayment penalty, although other fees may still apply.
Before selling, refinancing, or switching lenders, ask your lender for a written payout estimate for your intended date. Knowing the cost upfront helps you calculate your sale proceeds—or decide whether a lower mortgage rate would actually save you money.
Because the balance on your mortgage statement may not be the whole cost of saying goodbye.
Monday, 2 November 2026
Market Media Monday - November 2, 2026
A curated list of recent headlines relevant to real estate in Canada or locally, with short excerpts. Click each headline link to read the full article on the source site.[ BoC warns of ‘subdued’ outlook for housing market as rate hike raises borrowing costs ]
Sunday, 1 November 2026
Change your time, change your batteries.. and more?
When you're done adjusting the clocks, it's a good idea to take a few minutes to check your smoke and carbon monoxide (CO) alarms. It’s a simple seasonal habit that could make a life-saving difference.
Start with the batteries—but don’t stop there.
For alarms with replaceable batteries, change them at least once a year, or sooner if the manufacturer recommends it or the low-battery warning sounds. A regular battery change can be any time of the year, but a DST time change provides a convenient reminder. If your alarm has a sealed, long-life battery, follow the manufacturer’s instructions rather than trying to replace it. Test your alarms monthly, regardless of how they’re powered.
Check the age of the alarms themselves.
Fresh batteries won’t make an expired alarm new again. The Government of Canada’s web page on fire safety recommends replacing smoke alarms that are more than 10 years old. Check the manufacture date and replacement instructions on each unit. For CO alarms, follow the manufacturer’s expiry date—don’t assume every model has a 10-year lifespan. Replace any alarm that fails testing.
Make sure you have alarms where they’re required.
Ontario homes must have working smoke alarms on every storey and outside all sleeping areas.
For homes with a fuel-burning appliance, fireplace, or attached garage, working CO alarms are also required outside sleeping areas and, as of January 1, 2026, on every storey—including the basement and levels without bedrooms. The requirements also cover homes supplied with heated air from a fuel-burning appliance outside the home. Fuel-burning equipment includes more than natural gas: propane, oil, and wood can also create a CO risk.
If you’re unsure about placement, replacement, or the requirements for your particular property, contact your local fire department.
An extra hour is a nice bonus. Spending a few minutes checking your alarms is a good use of it.
For more information from the Ontario Association of Fire Chiefs:
Smoke alarms: https://www.oafc.on.ca/public-safety/smoke-alarms
CO alarms: https://www.oafc.on.ca/public-safety/fire-and-carbon-monoxide-hazards/carbon-monoxide-co
Friday, 30 October 2026
What happens when a real estate sale doesn't close?
Suppose you’re counting on the proceeds from selling your current home to complete your next purchase. If your buyer doesn’t close, you may suddenly be unable to close either. Your seller might be relying on that money for their own purchase—and the dominoes keep falling.
Meanwhile, moving trucks are booked, belongings are packed, and everyone is wondering where they’ll be sleeping that night. The lawyers are working to untangle the situation while the real estate agents help coordinate whatever comes next.
So, what do you do?
Once you’ve finished laughing, crying, or contemplating a dramatic new hairstyle by pulling your hair out, call your real estate lawyer.
A delayed closing doesn’t necessarily mean the deal is finished. Sometimes a missing document, delayed mortgage funds, or another problem can be resolved with a short extension. However, an extension needs to be properly agreed upon and documented. You shouldn’t assume you automatically have another day to close.
If the transaction falls apart, the next steps depend on the agreement and the circumstances. A seller may need to put the property back on the market, but should get legal advice before doing so. Sellers also generally need to take reasonable steps to limit their losses.
A buyer who defaults may lose their deposit and face a claim for additional losses, including a resale shortfall and certain carrying costs. Walking away can cost considerably more than the deposit. For further reading, SorbaraLAW provides an [overview of legal remedies available to sellers when a residential transaction fails].
If the seller is the one who fails to close, buyers may also have legal remedies. Your lawyer can explain the options and whether pursuing a claim makes practical and financial sense.
As your REALTOR®, my role is to help identify potential problems early, keep communication moving, and work alongside your lawyer when difficulties arise. Nobody can guarantee a trouble-free closing, but preparation and prompt action matter.
And if things do go sideways? Keep breathing, stay in touch, and let your legal counsel guide your next steps. A stressful situation is hard enough without making rushed decisions that create another one.
Tuesday, 27 October 2026
Terminology Tuesday: Lien
In real estate, a lien is a legal claim against a property that helps secure payment of a debt. You still own the property, but someone else has a claim that can affect your ability to sell or refinance it. Depending on the circumstances, enforcement can even lead to a forced sale.
For example, an unpaid contractor or supplier may have the right to register a construction lien for work or materials supplied to improve a property. A condominium corporation can also have a lien against a unit for unpaid common expenses. Different types of liens have different rules and requirements.
Does a lien mean a home can’t be sold?
Not necessarily, but it creates an issue that needs to be addressed. Depending on the lien, that might involve arranging payment and a discharge, negotiating a resolution, or taking legal steps to dispute or remove it. Discovering one shortly before closing can cause delays—or put the transaction at risk.
For sellers, the practical lesson is to involve your lawyer early if you know about a lien or an unresolved payment dispute. For buyers, it’s another reason the legal work behind your purchase matters.
The house might be beautifully staged, but you also want to know what’s attached to it on paper.






