MONTREAL — Nearly five years after floods raced through hundreds of Quebec communities and forced thousands from their homes, a major lender's decision to stop issuing new mortgages in flood zones is the latest challenge for cities trying to adapt to a changing climate.
"There are people who will discover that they're in a risk zone when they didn't necessarily know it before," he said in a phone interview. "It should be noted that properties in the 0—20-year zone are generally uninsurable … while government insurance protects a property for a maximum of $400,000 for life," spokesperson Chantal Corbeil said in a recent email.
Jacques Demers, president of the federation of Quebec municipalities, said Desjardins was the last major lender to offer mortgages in higher-risk flood zones. Most banks, he added, don't want to risk lending hundreds of thousands of dollars for a property that could become near-worthless after a flood.