Seven people have been displaced after an apartment fire in Wellesley Sunday afternoon.

Fire officials say flames broke out at a four unit apartment building on Nafziger Road and Doering Street around 12:30 p.m.

“There was fairly decent flames coming out of the back corner and smoke up to the roof on both sides of the house,” said Andrew McCleave, who witnessed the fire.

Five different fire stations were called in to battle the flames.

Officials say three people were home at the time of the fire, but everyone managed to get out unharmed.

They believe the fire started in a dumpster at the corner of the building and then flames reached up towards the roof of the building.

Fire officials say the cost of damages will likely be high due to significant smoke and water damage to the building.

Wellesley Fire Chief Paul Redman said other houses in the area suffered damage as well.

“Some of the houses downstream from the fire have three to four feet of water in the basement from all the runoff,” he said.

The Region’s environmental division has been called in to investigative possible impact from the water runoff.

Wellesley Township officials say the Red Cross has also been called in to assist with the displaced residents.

The Ontario Fire Marshal has been notified and will be investigating.

Fire crews are expected to remain on scene Sunday and Monday for a clean-up and overhaul of the home.

With reporting by CTV's Heather Senoran