Tip#1 – What value will the lender consider? One thing that is often overlooked when people are buying rural property is that most lenders will only consider the value of the house plus the first 5-10 acres when financing a property. That excludes outbuildings, however a garage is allowed and can be attached or detached. Most major banks will only consider the first 5 acres, however CMHC will consider up to 10 and we have numerous lenders who will as well. If the lender or the insurer questions the value, then they will generally order an appraisal. With the recent changes that took effect for most banks on November 1st, 2012, we have seen a drastic increase in the amount of appraisals being ordered. If the appraisal comes in lower than the purchase price, there are several options: · consider putting more than 20% down to avoid the insurers (CMHC, Genworth, CG) · You m...