For: First-time buyers and investors · Updated 2026-10-28

My presale appraised lower than I paid. What can I do?

By Uzair Muhammad, REALTOR®, Real Broker BC

Quick answer

Your lender will lend against the lower of the price or the appraisal, so you must cover the gap in cash or close another way. Your options are a second appraisal with another lender, adding funds or a co-signer, negotiating with the developer before completion, or an assignment. Walking away usually means losing your deposit and possibly being sued for the developer's losses.

Why this is happening to so many 2021–2022 buyers

Many presales signed near the 2021–2022 peak are completing into a softer 2026 market. Mortgage professionals in Metro Vancouver report appraisals coming in 10% to 30% below contract price on some completing buildings.

A lender's mortgage is based on the lower of the purchase price or the appraised value. If you paid $650,000 and the unit appraises at $560,000, an 80% mortgage is calculated on $560,000, not $650,000. The difference has to come from you.

Your realistic options, in order

1. Get the appraisal report and check it. Wrong square footage, missed parking or storage, or poor comparables are fixable errors.

2. Try a different lender. Lenders use different appraisers, and some lenders have already appraised the whole building. A mortgage broker can shop this quickly.

3. Add money or strength to the file: savings, a family gift with a gift letter, an RRSP Home Buyers' Plan withdrawal if you qualify as a first-time buyer, or a co-signer.

4. Talk to the developer early. Some developers are extending completion, crediting buyers or restructuring deals rather than chasing defaults through the courts. You need a lawyer and a buyer-side agent for this conversation.

5. Consider an assignment or listing the unit at completion. In 2026 assignment demand is thin, so price it realistically.

What walking away actually costs

Not closing is a breach of contract. You normally lose your deposit, and the developer can sue you for the difference between your price and what they later resell the unit for, plus their costs. This is not a free exit.

Speak to a real estate lawyer before you miss a completion date.

If you haven't bought yet

Build an appraisal buffer into your plan. Ask what comparable completed units in the same area are actually selling for today, not what the sales centre projects.

Facing a shortfall at completion?

Send us your contract and appraisal. On a 10-minute call we'll walk through your gap, the lenders worth trying, and how to approach the developer.

Book a free 10-minute call · Call or text (672) 258-1100

Buyer-side only · 450+ families helped · 2 defaults · 4.9★ from 36 Google reviews. Our fee is typically paid by the developer, so working with us usually costs you nothing. We confirm this on every project.

Frequently asked questions

Does the bank lend on the purchase price or the appraisal?

On the lower of the two. If the appraisal is lower than your price, the mortgage is calculated on the appraisal and you cover the difference.

Can I get a second appraisal?

Yes. Applying with a different lender usually means a different appraiser. A mortgage broker can compare lenders that have already appraised your building.

Can I just walk away from my presale?

You can refuse to close, but it's a breach of contract. You normally lose your deposit and the developer can sue for its losses on resale. Get legal advice first.

Will the developer lower the price?

Sometimes, in practice through credits, extended timelines or restructured deals rather than a formal price cut. It's a negotiation, and starting early helps.

Sources

This is general information, not legal, tax or financial advice. Rules change; confirm with a lawyer, accountant or mortgage professional before you act.

About the author

Founder of Presale Properties Group. Spent 10 years at the City of Surrey in Planning and Bylaws before real estate. Represents buyers only on new construction across Metro Vancouver and the Fraser Valley.