Re-Inspections & Progress Inspections: How Appraisers Value Homes Under Construction in Stages

Building or majorly renovating a home in Niagara, Hamilton or the surrounding area is exciting—but it can also be stressful, especially when the construction financing is tied to draws.

Most borrowers quickly learn that the lender won’t release all the funds up front. Instead, the money is advanced in stages as the work is completed. Each time you request a draw, the lender orders a progress inspection (often called a re-inspection) from an appraiser.

But what exactly are appraisers looking at during a progress inspection?How do we decide how “complete” the home is and what it’s worth at each stage?

This guide explains how re-inspections and progress inspections work in Ontario, what appraisers do on site, and how you can prepare so your construction financing stays on track.

1. What is a progress inspection or re-inspection?

A progress inspection (also called a draw inspection, construction inspection, or re-inspection) is a short appraisal assignment ordered by a lender to confirm:

1. The home is being built as per the approved plans and specs, and

2. The project has reached a certain percentage of completion, justifying the next draw.

Progress inspections are typically ordered:

• For new custom homes

• For major additions or full gut renovations

• For self-builds and small builder projects

• For some infill and rural construction projects

Unlike a full appraisal—which estimates the “as if complete” market value—a progress inspection focuses on:

• How far along the construction is, and

• Whether the lender’s funds are still adequately secured at that stage.

2. How progress inspections fit into construction financing

Most construction mortgages in Niagara and Hamilton are set up with multiple draws, such as:

1. Land purchase (if not already owned)

2. After foundation is complete

3. At “lock-up” (framing, roof, windows/doors)

4. After rough-ins and insulation

5. At drywall / interior finishing

6. On completion

Each lender has their own schedule and percentages, but the idea is the same:

The lender advances a portion of the total loan at each stage based on verified progress.

To protect themselves (and you), they rely on an independent appraiser to:

• Confirm that the work claimed has actually been completed

• Estimate the percentage of completion

• Flag any issues that could affect value, marketability or timelines

3. What appraisers look at during a progress inspection

When an appraiser attends a property under construction, we aren’t judging the design style or colour choices. We are focused on structure, progress, and risk.

Here’s what we typically review:

a) Plans, permits and prior appraisal

Before we visit, we review:

• The original appraisal (if one was completed “as if complete”)

• The approved plans and elevations

• Any available specifications (finishes, mechanicals, energy features)

• Prior inspection reports, if this is not the first draw

This lets us confirm that what’s being built still matches what the lender originally approved.

b) Percentage of completion

On site, we walk through the building and site to determine an approximate percentage complete. We look at:

• Foundation and structure – footings, walls, framing

• Roof – trusses, sheathing, shingles or other covering

• Windows and doors – installed and weather-tight?

• Mechanical rough-ins – plumbing, electrical, HVAC

• Insulation and vapour barrier

• Drywall and interior finishes – flooring, trim, kitchen, bathrooms, paint

• Exterior finishes – brick/siding, stucco, stone, soffits, fascia

• Site work – grading, driveway, porches, decks, garages

We then apply typical industry guidelines to estimate completion. For example:

• Foundation and framing might bring the project to roughly 30–40% complete

• Lock-up and rough-ins may bring it to 50–60%

• Drywall and interior finishes move it toward 80–90%

• Final fixtures, trim, and exterior/site work complete the last 10–20%

(Every project is unique, but the principle is the same.)

c) Compliance with plans and zoning

Appraisers also check whether:

• The home appears consistent with the approved plans (size, layout, number of storeys)

• Setbacks and site placement appear reasonable relative to zoning requirements

• There are any obvious issues, such as:

  • Encroachments

  • Major design changes not reflected in the original appraisal

  • Additions or deletions that may materially change value

If substantial deviations are discovered, the lender may request a revised appraisal of the finished product.

d) Quality of work and potential risks

We’re not acting as building inspectors, but we do note any visible concerns such as:

• Poor workmanship or major structural concerns

• Evidence of water penetration or prolonged exposure to weather

• Safety issues or vandalism / theft risks

• Significant delays (e.g., little progress between inspections)

These comments help the lender judge whether the project is on track and whether any additional conditions should be imposed.

4. How value is estimated at each construction stage

There are two common ways lenders and appraisers think about value during construction:

1. “As If Complete” value (from the original appraisal)

Usually, before construction starts, the lender obtains a full appraisal that estimates the market value of the completed home based on plans and specs.

That value might remain the benchmark for the entire project unless there are major changes. Progress inspections then focus more on percentage complete, not updating the final value every time.

2. Value as at inspection date (cost-to-date and market support)

In some cases, particularly for more complex or rural properties, the appraiser may also consider:

• Cost to date (land + construction cost already incurred)

• Plus a reasonable portion of entrepreneurial profit

• Less any obvious deficiencies or risks

• Cross-checked against the overall “as if complete” value and typical market reaction

The key question is:

“At this stage, is the lender’s current exposure (total funds advanced so far) still covered by the property’s value in its current, partially completed state?”

If the answer is yes—and the percentage of completion fits the lender’s draw schedule—the draw is usually released.

5. Why lenders insist on progress inspections

From the lender’s perspective, progress inspections protect:

• Them – ensuring they haven’t advanced more money than the project is worth at any stage.

• You – by keeping the project on a realistic schedule and discouraging over-funding early in the build.

• The market – by maintaining sound underwriting practices.

Without periodic inspections, a lender might accidentally advance too much money early on, only to discover:

• Construction has stalled

• Work quality is poor

• The home is very different from what was approved

• The market has shifted significantly

Progress inspections keep everyone accountable and help catch problems early, when they’re simpler and less expensive to correct.

6. Common issues that can delay a draw

Most progress inspections go smoothly, but a few recurring issues can slow things down:

a) Over-optimistic completion claims

Sometimes a builder or owner estimates the home is “90% done,” but flooring, trim and exterior work still remain. When the appraiser’s percentage is lower than expected, the lender may reduce the draw amount.

b) Major changes from the original plans

Examples:

• Adding or removing a garage

• Changing a bungalow to a two-storey

• Building a larger or smaller footprint than approved

• Switching from basic to very high-end finishes (or vice versa)

Significant changes may require a revised appraisal of the completed home before the lender can proceed.

c) Lack of access or unsafe conditions

If the appraiser can’t safely access all relevant areas—or the site is locked with no one there—the inspection may need to be rescheduled, delaying the draw.

d) Permits and compliance questions

If there are visible additions, decks, secondary suites or other elements that weren’t on the original plans, the lender may ask for permit confirmation or additional documentation.

7. How to prepare for a smooth progress inspection

A little preparation can go a long way when you’re relying on the next draw to pay trades or order materials.

Here are some practical tips:

1. Schedule inspections early As soon as you know you’re approaching the next draw stage, arrange the inspection so the report can be completed before cash flow becomes urgent.

2. Have someone on site A builder, project manager or owner who can answer questions and provide access speeds things up and avoids missed details.

3. Keep plans and changes handy Have a printed or digital copy of:

   • Approved plans and elevations

   • Any revised drawings or change orders

   • Permit documentation, if requested

4. Clean up critical areas The site doesn’t need to be spotless, but key elements (stairs, mechanical rooms, exterior walls) should be reasonably accessible and visible.

5. Be realistic about completion percentages It’s better to request a draw when you’re confident you’ve achieved the lender’s required stage, instead of hoping to “stretch” the percentages.

8. Progress inspections vs. final completion appraisal

In some cases, the final draw is based only on a progress inspection verifying that:

• The home is substantially complete, and

• It matches the plans and specs used in the original appraisal.

In other situations—especially where there have been changes—lenders may request a new full appraisal “as complete” at the end of construction.

This final appraisal:

• Confirms the actual finished market value

• Updates comparable sales and market conditions

• Provides a fresh basis for your long-term mortgage (if converting from a construction loan)

9. The bottom line: staged appraisals keep your project moving

Re-inspections and progress inspections might feel like just one more hoop to jump through when you’re building or renovating. In reality, they are an essential part of protecting your project, your lender, and your long-term equity.

A good progress inspection:

• Confirms that the work completed matches what you’re being funded for

• Helps your lender release draws confidently and on time

• Identifies potential issues early—before they become expensive problems

• Keeps your budget and timeline grounded in reality

Need progress inspections or a construction appraisal in Niagara or Hamilton?

Cade Appraisals regularly works with lenders, builders and homeowners on:

• Construction draw / progress inspections

• Re-inspections for new builds and major renovations

• “As if complete” appraisals based on plans and specs

• Rural estates, infill projects, and complex custom homes

If you’re planning a new build or large renovation in Niagara, Hamilton, St. Catharines, Welland, Grimsby, or the surrounding communities, we can help you and your lender stay in sync from the first shovel in the ground to final completion.

👉 Have a project coming up? Contact Cade Appraisals today to discuss your construction appraisal or request a quote.