Definition
Municipal assessment is the value recorded in the municipality's property assessment roll, used to calculate property taxes and land transfer taxes. In Quebec, rolls are revised every 3 years by accredited assessors mandated by municipalities.
Municipal assessment can be significantly different from market value (likely sale price on the market). In a rising market, market value often exceeds assessment by 20% to 50%, or more in highly sought-after neighborhoods. Some municipalities apply a correction factor (ratio) to the assessment to bring it closer to the market.
For mortgage lenders, it is the **market value appraised by an accredited appraiser** (not municipal assessment) that serves as the basis for loan-to-value ratio calculation. Land transfer taxes use the higher of sale price and 90% of municipal assessment.