Ask the Expert: Lori Lalonde Mortgages
Wildfire Season, Interest Rates & Rural Financing
One of the questions I hear most often from buyers is, “How does financing actually work when unexpected situations like wildfires happen?” Rather than guessing, I reached out to someone I trust.
Lori Lalonde of Lori Lalonde Mortgages has helped countless buyers navigate the financing process, and I asked her to answer some of the questions many of us are thinking about right now.
Diana:
Lori, if a wildfire delays a real estate transaction, what happens to a buyer’s mortgage approval or rate hold? Are there steps buyers can take to protect themselves?
Lori Lalonde:
Fortunately, lenders will generally work with buyers if a closing is delayed because of a wildfire or another unforeseen event. In many cases, they can extend the closing date. From a real estate perspective, it’s also important that your REALTOR® includes the appropriate clauses in the purchase contract to allow for delays if necessary. One of the biggest issues we see during wildfire season isn’t actually the mortgage—it’s home insurance. Many insurance companies won’t issue new policies on properties located near active wildfires, and without insurance, lenders can’t release mortgage funds.
Diana:
What should buyers know if the property they’re purchasing is located near an active wildfire or evacuation area?
Lori Lalonde:
Lenders take wildfire risk very seriously. If a property is under an evacuation order or has been affected by wildfire activity, funding may be delayed until it’s confirmed the property hasn’t been damaged and remains insurable.
Depending on the situation, buyers may need to provide confirmation that:
- The home hasn’t sustained damage.
- The insurance company has been fully informed.
- Any necessary repairs have been completed before funding.
The goal is to protect both the buyer and the lender while ensuring the property remains a sound investment.
Diana:
Many homeowners are wondering what happens if they’re evacuated. Do they still have to make their mortgage payments?
Lori Lalonde:
That’s a great question, and it’s one many people don’t think about until they’re directly affected. The good news is that many lenders and Canada’s mortgage insurers offer financial hardship programs for homeowners impacted by natural disasters. Depending on your lender and mortgage type, temporary mortgage payment assistance or payment deferral options may be available.
If you’ve been affected by a wildfire, don’t wait. Contact your lender as soon as possible to discuss the assistance programs available to you.
Helpful resources include:
- Payment Assistance
- Sagen Natural Disaster Information
- Canada Guaranty Wildfire Updates
Your lender can help determine which options may apply to your specific mortgage.
Diana:
Interest rates have changed quite a bit over the past year. What are you seeing buyers choose today?
Lori Lalonde:
It’s interesting because it often depends on the buyer’s experience. Most first-time home buyers still prefer fixed-rate mortgages because they like the certainty of knowing exactly what their payments will be. Many seasoned buyers are choosing variable-rate mortgages because they’re comfortable with some fluctuation and hope to benefit if interest rates decline. Generally speaking:
Variable Rate
Great for buyers comfortable with changes who want the opportunity to benefit if prime rates fall.
Three-Year Fixed
Offers stability without committing to a full five-year term.
Five-Year Fixed
Ideal for buyers who want maximum payment certainty and don’t want to think about rate movement.
Every buyer’s situation is different, so it’s important to discuss your goals before deciding.
Diana:
You work with many rural buyers. What’s the biggest financing mistake you see people make before writing an offer?
Lori Lalonde:
This is probably one of the biggest mistakes I see. People fall in love with the property before finding out whether it actually fits their financing. When you’re buying acreage, we’re qualifying two things—the buyer and the property.
Before writing an offer, I encourage buyers to ask questions like:
- How much land comes with the property?
- Is it residential, agricultural, or mixed zoning?
- Does it have a well and septic system?
- Is there year-round road access?
- Are there additional homes, shops, barns, or outbuildings?
- Is it a manufactured home?
- Will an appraisal be required?
Every lender has different guidelines for rural properties.
My advice is simple: Let’s review the listing together before you write an offer. We can identify any potential financing concerns early and make sure you’re looking at lenders who are the right fit for that property.
Final Thoughts
Diana:
A huge thank you to Lori Lalonde of Lori Lalonde Mortgages for taking the time to answer these important questions. Financing is one of the biggest pieces of the home-buying puzzle, and having an experienced mortgage professional on your side can make all the difference.
If you have questions about financing your next home, acreage, or investment property, I’d encourage you to connect with Lori before you start shopping. It could save you time, money, and unnecessary stress.
Diana Klejne Personal Real Estate Corporation
Stonehaus Realty Corp.
604-789-8202
DianaKlejne@Gmail.com
