You need to know your home’s value. Three documents claim to tell you what it’s worth. Only one is legally binding. This guide cuts through the noise and explains which one you actually need—and why.
Quick Definitions in Plain English
Before the side-by-side comparison, here’s what each document actually is:
- Comparative Market Analysis (CMA): A real estate agent’s written estimate of your home’s market value, based on recent sales of similar properties in your area. No formal licensing required to produce one. Used primarily for listing price guidance.
- Letter of Opinion (or Indicative Market Value Letter): A broker’s or agent’s professional opinion of market value, usually in letter format. Similar to a CMA but often more formal. Still not a legal appraisal.
- AACI Appraisal: A formal valuation performed by a licensed, credentialed appraiser (Accredited Appraiser Canadian Institute). Follows standardized methodology. Legally binding and accepted by banks, courts, and government bodies.
The core distinction: a CMA or letter of opinion is an estimate. An appraisal is a professional certification.
Comparative Market Analysis (CMA) — What You Need to Know
What Is a CMA?
A Comparative Market Analysis is a written valuation of your property based on the sales prices of comparable homes in your neighbourhood over a defined recent period (typically 3–6 months). A CMA accounts for differences in square footage, lot size, condition, location, and recent renovations.
The methodology is straightforward: identify 3–8 similar homes that sold recently, adjust their prices for differences from your property, and arrive at a suggested list price or current market value estimate.
CMAs are the bread-and-butter tool of residential real estate in Ontario. Ontario MLS (Toronto Real Estate Board) data is the primary source for comparable sales data used in CMAs across Ontario and surrounding regions.
Who Provides a CMA?
Real estate agents and brokers provide CMAs. In Ontario, any licensed real estate salesperson can prepare a CMA—there is no separate credential required. However, a quality CMA depends on the agent’s local market knowledge, access to reliable MLS data, and analytical skill.
You can request a CMA from any agent in your area, typically for free as part of their listing or valuation consultation.
What Does a CMA Cost?
In Ontario, CMAs are almost always provided at no charge by agents competing for your listing business. If an agent is asking for a fee to prepare a CMA, that is unusual and unnecessary—you can obtain one elsewhere for free.
What Is a CMA Used For?
- Determining an appropriate listing price
- Negotiating an offer to purchase
- Assessing whether a property is overpriced or underpriced
- Personal financial planning (non-legal estimates)
- Casual curiosity about home value trends
What a CMA is NOT used for: mortgage approval, legal disputes, tax assessment appeals, or any transaction where a third party requires verified professional credentialing.
Letter of Opinion / Indicative Market Value — What You Need to Know
What Is a Letter of Opinion?
A Letter of Opinion (sometimes called an Indicative Market Value letter or broker opinion of value) is a formal letter from a real estate broker or agent stating their professional opinion of a property’s market value. It is more structured than a casual CMA but follows the same underlying logic: recent comparable sales, adjusted for property-specific factors.
The letter typically includes:
- Property address and description
- Recent comparable sales (3–5 properties)
- Adjustments for differences
- A stated market value opinion
- Date and broker/agent signature
A Letter of Opinion is the agent’s professional judgment, not a verified appraisal.
Who Provides a Letter of Opinion?
Licensed real estate agents and brokers in Ontario can issue a Letter of Opinion. Some brokerages have specific templates and processes for these letters; others treat them as formal CMAs. There is no regulatory distinction—the authority comes from the broker’s professional reputation, not from a special license.
What Does It Cost?
Letters of Opinion are typically provided free of charge by real estate agents and brokers as part of client service or listing consultation.
When Is a Letter of Opinion Used?
- Divorce or estate proceedings (where an informal estimate is acceptable as context, but not dispositive)
- Insurance valuation requests (though insurers often require formal appraisals)
- Family loan documentation
- Personal financial planning
- Situations where an appraisal is too expensive or time-sensitive, but a documented estimate is preferred over a casual CMA
What it is NOT used for: mortgage qualification, bank lending decisions, or any legal proceeding where a certified independent professional valuation is required.
Paid AACI Appraisal — What You Need to Know
What Is an AACI Appraisal?
An AACI (Accredited Appraiser Canadian Institute) appraisal is a formal valuation of a property conducted by a licensed, credentialed professional appraiser. AACI is the national body that certifies real estate appraisers in Canada.
An AACI appraisal follows a standardized methodology called the three approaches to value:
- Sales Comparison Approach: Recent comparable sales, adjusted for differences (similar to a CMA, but more rigorous)
- Cost Approach: Replacement cost of the building plus land value, minus depreciation
- Income Approach: For investment properties, the capitalized value of rental income
The appraiser produces a detailed written report (typically 15–30 pages) that explains the valuation methodology, comparable properties analyzed, adjustments made, and the final appraised value. This report is legally binding and accepted by banks, courts, government bodies, and professional institutions.
Who Provides an AACI Appraisal?
Only credentialed members of AACI can issue a formal appraisal report. To become an AACI member, an appraiser must:
- Complete accredited coursework in real estate valuation
- Accumulate documented appraisal experience (typically 500+ hours)
- Pass a comprehensive examination
- Maintain annual continuing education
- Follow AACI’s Code of Ethics and Standards of Professional Practice
AACI appraisers operate independently—they are not employed by lenders or real estate agents. This independence is essential to the credibility of the appraisal.
What Does an AACI Appraisal Cost in Ontario (2026)?
Appraisal fees in Ontario vary based on property type, location complexity, and report depth. Typical ranges:
- Standard residential appraisal (GTA, urban areas): $450–$700
- Standard residential appraisal (rural/smaller markets): $350–$550
- Detailed/Complex appraisal: $700–$1,200+
- Rush appraisal (48–72 hours): +20–50% premium
These figures reflect 2025–2026 market rates in Ontario; appraisers typically quote individually based on the specific property and request timeline.
When Is an AACI Appraisal Required?
- Mortgage qualification: Lenders require an appraisal to confirm collateral value before advancing funds. This is nearly universal for mortgages over $100,000.
- Refinancing: Most lenders require a fresh appraisal before refinancing, even if you just had one done.
- Legal proceedings: Family law (divorce, separation), estate litigation, property tax appeals, and civil disputes often require a certified independent appraisal.
- Government assessments: Assessment appeals to the Municipal Property Assessment Corporation (MPAC) in Ontario may require or be strengthened by a professional appraisal.
- Insurance claims: High-value properties or loss claims may require appraisal documentation.
- Business valuations: If property is part of a business valuation for sale or financing.
How Long Does an AACI Appraisal Take?
Standard turnaround is 7–14 business days from order to final report. Rush appraisals can be completed in 48–72 hours for a premium fee. The timeline depends on appraiser availability and report complexity.
Side-by-Side Decision Matrix: When to Use Which
| Use Case | CMA | Letter of Opinion | AACI Appraisal |
|---|---|---|---|
| Listing your home | ✓ Best choice | ○ Optional | ✗ Unnecessary |
| Mortgage approval | ✗ Not accepted | ✗ Not accepted | ✓ Required |
| Refinancing | ✗ Not accepted | ✗ Not accepted | ✓ Required |
| Legal dispute / family law | ✗ Weak evidence | ○ Acceptable in some contexts | ✓ Best choice |
| Tax assessment appeal (MPAC) | ✗ Not accepted | ○ Marginal | ✓ Preferred |
| Personal financial planning | ✓ Sufficient | ✓ Sufficient | ○ Overkill |
| Estate planning / divorce context | ○ Useful starting point | ✓ Often adequate | ✓ Gold standard |
| Casual curiosity / market trend | ✓ Free + quick | ✓ Free + formal | ✗ Expensive |
| Cost to obtain | Free (agent provided) | Free (agent provided) | $400–$1,200 |
| Legal weight / admissibility | Low (opinion only) | Moderate (professional opinion) | High (certified, binding) |
Legal Weight: Which Document a Bank, Court, or Lawyer Will Accept
Bank Lending and Mortgage Qualification
CMHC (Canada Mortgage and Housing Corporation) and all regulated lenders in Canada require a formal AACI appraisal or equivalent before mortgage approval. A CMA or letter of opinion will not satisfy lending requirements. This is non-negotiable.
The reason is simple: the lender is advancing money secured by the property. An independent professional appraisal protects both the lender and the borrower by confirming the property’s actual market value.
Legal and Court Proceedings
In family law matters (divorce, separation agreements), estate disputes, and property tax appeals, courts in Ontario accept the following hierarchy:
- AACI appraisal: Gold standard. Independent, credentialed, standardized methodology, legally binding.
- Letter of Opinion from a senior broker: Accepted as evidence, but given less weight than a formal appraisal. A lawyer may use it to support a position, but opposing counsel will challenge its credibility.
- CMA from a real estate agent: Rarely admitted as standalone evidence in court. Courts view it as self-interested (the agent benefits from a higher or lower valuation) and non-credentialed.
If you are involved in a legal proceeding and value is disputed, budget for an AACI appraisal. The cost ($400–$700) is worth the credibility it provides in court.
Municipal Property Assessment Appeals (MPAC)
Ontario homeowners can appeal their property assessment through MPAC (Municipal Property Assessment Corporation). An AACI appraisal is the strongest evidence to support your appeal. A CMA or letter of opinion may be accepted as supporting evidence but carries less weight.
If your assessed value seems significantly inflated and you plan to appeal, obtain a formal appraisal.
Insurance and Claims
Insurance companies typically require or request appraisals for high-value properties or loss claims. A CMA or letter of opinion may be used as initial documentation, but replacement-value insurance often requires a formal appraisal to determine coverage limits.
Cost Ranges for Each in Ontario 2026
Here is a realistic breakdown of costs across all three options:
CMA Cost
Free. Provided by real estate agents competing for your listing or consulting business. There is never a legitimate reason to pay for a CMA in Ontario.
Letter of Opinion Cost
Free. Issued by licensed brokers or agents as a professional service, typically at no charge. If a broker is requesting a fee, ask for a referral to a competing broker.
AACI Appraisal Cost (Ontario 2026)
- Standard residential property (GTA, urban centres): $500–$700
- Standard residential property (smaller cities/rural Ontario): $350–$550
- Complex or luxury residential ($2M+): $900–$1,500
- Rush or expedited appraisal (48–72 hours): +25–50% of standard fee
- Additional reports or follow-ups: $100–$300 per item
Appraisal fees are set by individual appraisers and vary by market. Costs have risen modestly since 2024 due to increased travel distances in rural Ontario and higher data research costs. Always request a fee quote before commissioning an appraisal.
Total Cost Example
If you’re listing your home, refinancing, and later facing a legal dispute:
- CMA for listing: $0
- Appraisal for mortgage: $550 (mortgage lender typically orders and pays this)
- Appraisal for legal proceedings: $600 (you pay out-of-pocket)
- Total real cost to you: $600 (if lender paid the mortgage appraisal)
Key Takeaways
- A CMA is free and fast for listing price guidance. It’s an agent’s opinion, not a certification.
- A Letter of Opinion is also free and slightly more formal than a CMA, but carries no legal authority.
- An AACI Appraisal costs $400–$700, takes 7–14 days, and is required by banks and accepted by courts.
- If a lender or lawyer is involved, you need an appraisal. CMAs and letters of opinion will not suffice.
- If you’re listing, selling, or just curious, a free CMA from your agent is the right choice.
- If legal or financial stakes are high, budget for an AACI appraisal. The credibility is worth the cost.
Frequently Asked Questions
Can I use a CMA for a mortgage application?
No. Lenders require a formal AACI appraisal. A CMA or letter of opinion will be rejected. The lender needs an independent, credentialed professional valuation to approve your mortgage.
Who pays for the appraisal in a mortgage deal?
Typically the buyer pays the appraisal fee, either upfront or rolled into closing costs. In some cases, the seller may cover the cost as part of a negotiated deal. Always clarify this in your offer or financing agreement.
Can I reuse an appraisal I got six months ago for a refinance?
Probably not. Most lenders require a fresh appraisal within the past 90–120 days for refinancing. Market conditions can change, and the lender wants current data. You’ll need a new appraisal, which costs another $400–$700.
What’s the difference between an appraisal and an assessment?
An appraisal is a professional valuation of a property’s market value, ordered privately. An assessment is the municipal valuation of your property for property tax purposes, set by MPAC. They are independent processes. A high appraisal does not affect your tax assessment (though you can appeal your assessment separately).
Is a letter of opinion acceptable in court?
It depends on the court, the context, and the credibility of the person issuing it. A letter from a well-established senior broker carries more weight than one from a newer agent. However, if the other side challenges it, you may lose. An AACI appraisal is much stronger evidence.
How do I find an appraiser in Ontario?
Contact AACI directly for a list of credentialed members in your region, or ask your lender for a referral. Lenders often work with the same appraisers repeatedly and can provide names. Do not use an appraiser recommended solely by the seller or buyer—look for independent professionals.
Get Your Home’s Value in 60 Seconds
Now you know the difference between a CMA, a letter of opinion, and an appraisal. For a free, instant estimate of your home’s value based on recent Ontario sales data, head to InstantCalculator.ca. No appraiser fee. No agent pressure. Just your address and a data-driven number—calculated in seconds. Want a more detailed conversation about your property’s value or refinancing options? Book a free call with Alex Goodman, and we’ll walk through your options in detail.
 | Alex GoodmanSales Representative · RE/MAX Your Community Realty, Brokerage Alex Goodman is a Sales Representative with RE/MAX Your Community Realty, Brokerage, serving the Greater Toronto Area. He specializes in residential sales across Ontario — luxury, first-time buyer, and downsizing transactions — and maintains InstantCalculator.ca as a free public resource for Ontario homeowners researching their property value. |