Recently, Manitoba suffered the most severe flooding the region has experienced in nearly 14 years. As a result, more mortgage lenders are now being strict about location specifications in their applications, Canadian Mortgage Broker News reports.
Now, more lenders are pointing to the “safe” location information related to certain areas, such as those in flood zones, to avoid increased damage claims from potentially affected areas.
“In our application notes, we’re putting in that the property hasn’t been affected by the flooding, or isn’t in a flood zone,” Brad Poole, a principal broker at a major lender, told the news source.
According to Poole, the inclusion of this stipulation has proven effective, as he is able to instill confidence in more potential home loan lenders. In fact, his originations have grown year-over-year in areas of Manitoba that could see further flooding damage soon. The article relays that the flooding in the region has already forced thousands to evacuate and nearly 150 homes to be sacrificed.
Other brokers have noted a quick decrease in lending activity because of the floods, which further highlights Poole’s effective approach.