The "Condo Crunch" in Surrey & Vancouver: Why Appraisals Are Coming in Low (And How to Close Anyway)

The "Condo Crunch" in Surrey & Vancouver: Why Appraisals Are Coming in Low (And How to Close Anyway)

Date: December 12, 2025 | Category: Mortgage Solutions, BC Real Estate | Reading Time: 5 Minutes

It's the phone call no condo buyer wants to receive one week before completion.

"The appraisal is back. It's $60,000 short."

If you bought a presale condo in Surrey or Vancouver back in 2022 or 2023, you likely bought at the peak of the market. Now, as you prepare to move in, the market reality has shifted. Prices in many condo pockets have softened, and buyers are walking away from their deposits because they simply can't bridge the gap.

At Kraft Mortgages, we have a solution that the big banks don't: An exclusive lender willing to finance up to 85% Loan-to-Value (LTV) on condos.

The "Appraisal Trap": Why Buyers Are Scrambling

Here is the math that is keeping buyers up at night.

When you buy a home, the bank lends based on the lower of two numbers: what you paid, or what it's worth today.

• The Bank's Move: A traditional bank will give you 80% of the current value ($640k). That's a mortgage of $512,000.
• The Problem: You still owe the developer $700,000.
• The Gap: You now need to come up with $188,000 in cash to close. If you only saved the traditional 20% down payment ($140,000), you are $48,000 short.

This is why buyers are "walking away"—they literally cannot find that extra cash.

The Kraft Solution: The 85% "Rescue" Mortgage

While the major banks are tightening their belts and capping conventional mortgages at 80%, we have access to a specialized lending partner who understands the current BC market.

They are willing to go up to 85% Loan-to-Value.

Here is how that same scenario looks with our solution:

Who Is This For?

This program is specifically designed for:

1. Presale Buyers: Facing low appraisals upon completion.
2. Recent Purchasers: Who bought with a quick closing and are seeing values dip.
3. High-Ratio Borrowers: Who have strong income but are "cash poor" regarding the extra down payment funds.

Don't Walk Away From Your Deposit

The market in Vancouver and Surrey is shifting, but real estate is a long game. Walking away from a $100,000+ deposit because of a temporary appraisal gap is a tragedy we want to prevent.