The impact of new flood zone mapping on the real estate market

In a recent article in Le Devoir entitled "La nouvelle cartographie des zones inondables ne surprise pas les assureurs", John Fucale, Senior Vice President, Broker Relations at Multi-Prêts, discussed the effect that the new flood zone mapping could have on the real estate market.

This mapping, produced by the Communauté métropolitaine de Montréal, doubles the number of properties located in at-risk zones. Although the market is not showing any immediate changes, Mr. Fucale observes that "for the time being, it's business as usual", while hinting at the possibility of new regulations to come to manage flood risks.

When analyzing the financing of a property, financial institutions already take flood risk into account. In some cases, they may require preventive measures or even refuse to finance properties in high-risk areas. Last March, for example, Desjardins announced that it would no longer finance home purchases in such areas, with a few exceptions.

These developments could have a significant impact on the real estate market, particularly for newly-identified properties in these high-risk zones.

To navigate this changing environment, it's a good idea to consult a mortgage broker. He or she can guide you through the best financing options for your situation.