In short
The municipal (property) assessment is used to calculate your property tax: produced by mass appraisal, it reflects the market as of a past reference date (in Ontario, still January 1, 2016; in BC and Alberta, July 1 of the previous year). The bank appraisal is a professional appraiser's report estimating your property's current market value for the lender, which lends on the lesser of the purchase price and that appraisal. Neither one sets the sale price.
The municipal assessment is not market value: it is a taxation tool, frozen for three years in Quebec and based on a reference date eighteen months before the roll takes effect — Ontario stayed on 2016 values for nearly a decade. To roughly update it: multiply the assessment by the comparative factor published by your municipality (e.g. 1.12 = sales ~12% above the roll). For a real value — financing, estate, assessment challenge — you need a professional appraiser (É.A. in Quebec, AACI/CRA elsewhere).
Property assessment or bank appraisal: what each one measures
| Municipal assessment | Bank appraisal | |
|---|---|---|
| Who produces it | The municipality or provincial assessment agency, for the whole territory | A professional appraiser (É.A. in Quebec, AACI or CRA elsewhere), retained for your property |
| What it measures | Your property’s value relative to others, to share out the tax | The current market value of your specific property |
| As of when | A past reference date set by law (table below) | The report date, or a specific date requested |
| Method | Mass appraisal, statistical models, no visit | Site visit, comparable sales, documented adjustments |
| Used for | Calculating property tax (and, in Quebec, one of the welcome-tax bases) | Setting the lender’s lending value; also estates, divorce, assessment challenges |
Which one counts for what
| For | What counts | In practice |
|---|---|---|
| Property tax | The municipal assessment | Roll value × the municipal rate. A bank appraisal does not change it. |
| Welcome tax (Quebec) | The highest of three bases | Price paid, consideration in the deed, or municipal assessment × comparative factor. The calculation. |
| Mortgage | The lesser of price and appraisal | If the appraisal comes in below the price, the gap is not financed: it adds to your down payment. Down payment and mortgage insurance. |
| Sale price | Neither | The price is set by the market, between buyer and seller. A real estate broker sets it from comparable sales. |
| Challenging your assessment | The municipal assessment | That is what you challenge, with sales close to the reference date. Deadlines and fees by province. |
Lending value: "The lending value of the real estate that will be used to calculate the LTV is the lesser of either the market value as determined by an appraisal or the purchase price" (Sagen, mortgage insurer). Each lender applies its own policy.
The reference date, province by province
This is the date on which the municipal assessment "photographs" the market. The further back it is, the larger the gap with today’s value can be.
| Province | Cycle | Reference date | Source |
|---|---|---|---|
| Quebec | Three-year roll | July 1 of the second fiscal year before the roll: July 1, 2024 for 2026-2028 rolls | LFM, art. 46 |
| Ontario | Reassessment postponed | January 1, 2016, for the 2021 to 2026 taxation years | O. Reg. 282/98, art. 48.6 ; MPAC |
| British Columbia | Annual | July 1 of the previous year: July 1, 2025 for 2026 | Assessment Act, art. 18 |
| Alberta | Annual | July 1 of the previous year: July 1, 2025 for 2026 | MRAT, art. 6 |
| Saskatchewan | Every four years | January 1, 2023 (2025 revaluation) | SAMA |
| Manitoba | Every two years | April 1, 2023 (2025 roll); April 1, 2025 for the 2027 reassessment | Province du Manitoba ; Ville de Winnipeg |
| New Brunswick | Annual | January 1 of the previous year: January 1, 2025 for 2026 | Loi sur l’évaluation, art. 15 ; SNB |
| Nova Scotia | Annual | January 1 of the previous year: January 1, 2025 for 2026 | PVSC |
| Newfoundland and Labrador | Annual (every two years in St. John’s) | January 1; in St. John’s, January 1, 2024 for 2026-2027 notices | Assessment Act, art. 17-19 ; Ville de St. John’s |
| Prince Edward Island | Annual | Not published by the province | Finances Î.-P.-É. |
Sources: each province’s statutes and assessment agencies, checked in September 2026. Click a province for its appeal deadlines.
Why the municipal assessment is not market value
"The house is listed $120,000 above the municipal assessment — that's robbery!" It is probably real estate's most widespread confusion. The municipal assessment is a taxation tool: it distributes the tax burden across a municipality's properties — it does not say what yours is worth on today's market.
Two structural reasons widen the gap. It is frozen: in Quebec, the assessment roll is deposited for three years, and its values reflect the market at an earlier reference date — eighteen months before the roll takes effect. A property assessed on the market of two or three years ago, in a rising market, will mechanically look "under-assessed". It is mass-produced: thousands of properties valued through statistical methods, without visiting yours — your renovations, your yard, your light are not in it. Ontario pushes the logic to the extreme: MPAC assessments remained based on January 1, 2016 values through nearly a decade of successive postponements.
The comparative factor: the correction tool almost nobody knows
Quebec actually publishes the tool to correct for this: the comparative factor. Every year, for every municipality, this factor measures the gap between roll values and the real market (based on observed sales). A factor of 1.12 means properties sell, at the median, about 12% above their roll value. Multiplying the municipal assessment by the comparative factor therefore gives a rough indication of updated value — exactly what the calculator below does. (Elsewhere in Canada, you can apply your own ratio between recent local sales and assessments.)
The key word is "rough": the factor is a municipal average. It knows nothing about your street, the state of your roof or your kitchen renovation. It is an order of magnitude to frame a discussion — not a value to buy, sell or borrow against.
Interactive tool
From the municipal roll to a value indication, in 20 seconds
Enter your municipal assessment and the comparative factor published by your municipality: the calculator returns the value indication and the gap with an asking price.
The comparative factor is a municipal average: this indication frames a discussion — it replaces neither a market analysis nor a professional appraiser's report. Outside Quebec, use your own local sales-to-assessment ratio.
When a professional appraiser is required — and which credential to verify
To know the real market value of a specific property, on a specific date, there is a professional whose job that is: the professional appraiser — in Quebec, the É.A. (member of the Ordre des évaluateurs agréés du Québec); elsewhere in Canada, the AACI and CRA designations of the Appraisal Institute of Canada. Their signed, defensible report visits the property, analyzes comparable sales and documents every adjustment.
The situations where one is required: financing (lenders often demand it, especially for a refinance); estates and divorce (a neutral, defensible value avoids many conflicts); challenging your municipal assessment (an appraiser's report is the centrepiece of a review request); and selling without a broker, where mispricing costs far more than the report. How to verify the credential? Our pillar Verify a professional points to the order or association, province by province.
Frequently asked questions
What is the difference between the municipal assessment and the bank appraisal?
The municipal assessment is the roll value: produced by mass appraisal, as of a past reference date set by law, it is used to calculate property tax. The bank appraisal is a professional appraiser's report estimating your property's current market value for the lender. The two can differ widely without either being wrong.
What happens if the bank appraisal comes in below the purchase price?
The lender sizes the loan on the lesser of the purchase price and the appraisal. The gap between the two is therefore not financed: you add it to your down payment, renegotiate the price, or challenge the appraisal with the lender using comparable sales.
Which one is used for the Quebec welcome tax?
Neither alone: the tax is calculated on the highest of three bases, namely the price paid, the consideration in the deed, or the municipal assessment multiplied by the municipality's comparative factor. The bank appraisal is not part of the calculation.
Why is the asking price above the municipal assessment?
Because the municipal assessment is a taxation tool, frozen for three years in Quebec and based on an earlier reference date (eighteen months before the roll takes effect). In a rising market, the gap is mechanical — by itself, it says nothing about whether the price is reasonable.
What is the comparative factor?
A coefficient published every year for each Quebec municipality, measuring the median gap between roll values and actual sale prices. Municipal assessment × comparative factor = a rough indication of updated value. It is a municipal average: useful for framing, insufficient for deciding. Elsewhere, apply your own local sales-to-assessment ratio.
When do I need a professional appraiser?
Financing and refinancing (often required by the lender), estates, divorce, challenging your municipal assessment, selling without a broker. Their signed report establishes the market value of a specific property on a specific date — something no municipal roll or online tool does.
Which credential should an appraiser hold?
In Quebec: chartered appraiser (É.A.), member of the Ordre des évaluateurs agréés du Québec. Elsewhere in Canada: the AACI (all property types) or CRA (residential) designations of the Appraisal Institute of Canada. The credential can be verified with the order or association.
Mechanisms verified (triennial roll, reference date, comparative factor) in 2026 — municipal rules evolve: confirm with your municipality or a professional appraiser.
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