AS-IS Homes & Mortgage Nightmares: What Buyers and Sellers Need to Know in 2025

In a real estate market shaped by economic uncertainty and shifting lending rules, understanding the impact of “AS-IS” property listings could be the difference between closing a deal and losing financing altogether.

In our recent interview with expert mortgage broker Dion Beg, we explored the risks and realities of buying or selling homes listed “as-is”, along with powerful insights into the 2025 housing market, financing strategies, and mortgage math that can unlock better deals.

Download the Buyers, Sellers and Negotiation Guides here:

http://garyamcg.com/guides

🚨 What Does “As-Is” Really Mean?

For many first-time buyers or seasoned investors, an “as-is” listing can look like a great bargain. But as Dion Beg warns, it’s also a major red flag for lenders. Terms like “contractor’s dream” or “renovator’s delight” may seem harmless — until a bank sees them.

👉 Why it matters: Lenders evaluate risk, and when a property is listed “as-is,” they often assume it may be uninhabitable, disqualifying it from standard financing. That could mean needing private lending, higher rates, or worse — no mortgage approval at all.

📉 Appraisals Are Falling Short — Here’s Why It’s Dangerous

Many buyers who signed pre-construction deals in 2021–2022 are now facing a brutal wake-up call: their new homes are worth less than they paid. In one real-world example shared by Dion, a buyer who purchased for $870,000 received an appraisal of just $715,000 — a $155,000 shortfall that required urgent financial restructuring.

👉 Takeaway: Always plan for appraisal risk. If the value comes in lower than the price, your loan will be based on the appraised value, not what you agreed to pay.

🧠 “Mortgage Math” You Need to Know

Dion also introduced a simple but powerful tool for buyers: Mortgage Math.

💡 Rule of thumb:

• Every $100,000 borrowed = approx. $500/month

• Every $10,000 change = about $50/month

This mental shortcut helps buyers assess if a price difference is truly a deal-breaker — often, it’s not!

🏘️ Is It a Buyer’s Market in 2025?

According to the latest stats from the Toronto Real Estate Board, we’re now seeing 7 months of housing inventory, up from a balanced 5-6. That means buyers have more options — and more power in negotiations.

🛠️ Tips for Sellers Listing “As-Is”

If you’re listing your home “as-is,” do so strategically:

• Understand how it affects buyer financing.

• Be ready for scrutiny from appraisers and lenders.

• Consider a pre-listing inspection to mitigate surprises.

✅ Final Thoughts from Dion Beg

Today’s market is tough but full of opportunity — if you’re informed. Whether you’re trying to close on a tricky property, worried about appraisals, or planning your next move, partnering with a knowledgeable mortgage broker can save you thousands and months of stress.

📲 Want to talk with Dion?

Visit: kangamortgage.ca

Follow on Instagram: @thedionbeg