In a recent article published in Le Devoir titled “The new flood zone mapping does not surprise insurers,” John Fucale, Senior Vice President in charge of broker relations at Multi-Prêts, discussed the potential impact that the new flood zone mapping could have on the real estate market.
This mapping, produced by the Communauté métropolitaine de Montréal, has doubled the number of properties located in risk zones. Although the market is not showing immediate changes, Mr. Fucale observes that “for now, it’s business as usual,” while hinting at the possibility of new regulations being introduced to manage flood risks.
When assessing property financing, financial institutions already take flood risk into account. In some cases, they may require preventive measures or even refuse to finance properties located in highly exposed areas. In March, Desjardins Group announced that it would no longer finance home purchases in these zones, with a few exceptions.
These developments could have a significant impact on the real estate market, particularly for properties newly identified as being in risk areas.
To navigate this changing environment, it is advisable to consult a mortgage broker. They can guide you through the best financing options suited to your situation.