The AIC's call for action comes as policymakers and industry leaders grapple with rising mortgage costs
As Canada’s housing crisis worsens and the economy faces continuing uncertainty, the Appraisal Institute of Canada (AIC) has urged Parliament Hill that federal leaders needed to act quickly to protect consumer confidence and real estate stability.
The AIC’s recommendations, delivered as part of its 2025 pre-budget submission, focus on strengthening the federal banking framework by consulting with industry experts to identify regulatory vulnerabilities and increase transparency. Donna Dewar, CEO of the AIC, said the federal government must “prioritize clarity and stability in the housing system,” emphasizing the need for ongoing consultation with professional appraisers and industry leaders.
The Institute urged lawmakers to recognize how mortgage oversight, consumer rights and real estate valuation are reflected in the national federal banking framework. The government should consult with industry to indentify regulatory vulnerabilities and strengthen transparency and trust, it said.
That means the establishment of a permanent and multi-sector Stakeholder Advisory Committee within the Office of the Superintendent of Financial Institutions (OSFI), either through policy guidance and legislation changes or by working directly with the Superintendent.
The AIC is also calling for the government to consider targeted amendments to the Bank Act in order to strengthen financial stability, consumer protection, and lending integrity.
Professional appraisers, designated as P. App., conducted nearly one million appraisals in 2024, valued at over $1.5 trillion, according to AIC data. “Canadians look to professional appraisers for reliable leadership and expertise to navigate the market with confidence,” Dewar said.
Canadians sceptical of automated valuations
Recent AIC research found that nine in 10 Canadians believe appraisers are the best option for accurate property values, while only 14% trust Automated Valuation Models (AVMs) more than appraisers. The survey also revealed that 74% of respondents believe regulators should oversee AVMs, and four in five support the creation of a federal advisory committee to help guide Canada’s mortgage system.
“Real estate is one of Canada’s most significant economic drivers,” Dewar said. “Without prudent policy and strong leadership grounded in transparency, integrity, and consumer support, Canadians and our financial system face real challenges. We’re speaking directly with the federal government about the immediate steps needed to protect Canadians, the real estate market, and the economy.”
Market risk and consumer protection
The AIC’s call for action comes as policymakers and industry leaders struggle with rising mortgage costs, affordability concerns, and the growing complexity of real estate transactions. Housing market activity showed a slight rebound across Canada last month, and analysts like CREA senior economist Shaun Cathcart said the recent Bank of Canada rate cut could encourage more buyers to enter the market.
Meanwhile, Appraisal Institute of Canada president Terry Dowle told Canadian Mortgage Professional that brokers and borrowers should connect with appraisers early in the mortgage process to spot potential issues before a deal falls through. Dowle said direct communication between brokers and appraisers helps avoid confusion and frustration for borrowers who may not understand how their property is being valued—especially when expectations are high.
“So when you’re thinking of that resale property and there’s an expectation of a million-dollar value, having that communication with the appraiser early [is key],” he said.
