The Ontario government’s amendments to regulations governing syndicated mortgage investments in the province, have been welcomed by the Appraisal Institute of Canada.
The expanded rules come into effect from July 1, 2018 and will require mortgage brokers will have to collect and document expanded disclosure information using a new FSCO form which includes information regarding the appraisal of the property in question.
“Appraisals provide an unbiased, independent and reliable market value for a property,” said Richard Colbourne, AACI, P.App., president of the AIC. “The amended regulations now ensure that an appraisal is completed for a syndicated mortgage investment and that it will include the condition and value of the property within 60 days of the inspection.”
He added that “This information will ensure that a potential investor has a clearer understanding of the “as-is” value of the property to make a well-informed and prudent investment decision.”