Barriere

Lending in Barriere

Barriere is a classic North Thompson Valley town, about a 45-minute drive up Highway 5 from Kamloops. It’s important to be clear about what it is and isn’t. It’s not a Kamloops suburb, a resort destination, or an industrial hub. This is a quiet, rural community defined by the river valley it occupies. The lifestyle is self-reliant, and the biggest event of the year is the North Thompson Fall Fair and Rodeo. The town’s population grew by only 3% between 2016 and the last census, underscoring its slow, steady pace.

This character is reflected in the local economy. There are no major anchors here—no big mills, mines, or university campuses to prop up the market. Employment is driven entirely by local needs, with construction and retail trade being the top two sectors. The data paints a clear picture for risk assessment: a median household income of $66,500 combined with a high unemployment rate of 16.5%. Furthermore, with less than 5% of residents holding a bachelor’s degree or higher, the workforce is concentrated in trades and services. These aren’t automatic red flags, but they show a small, stable but vulnerable economy with no significant growth drivers on the horizon.

The housing market is exactly what you’d expect. It’s almost entirely single-detached homes, which make up over 80% of the stock. Another 14.5% consists of movable dwellings. You won’t find high-density condos or much new development here. The demographics confirm the trend of a stable, but not particularly dynamic, housing market. The median age is a high 58.4, and more than a third of the population is over 65. This points to a very limited pool of qualified local buyers when a property needs to be sold.

From a lending perspective, we know Barriere well, but we’re cautious. The appeal for residents is an affordable, quiet lifestyle with plenty of outdoor recreation, which can attract retirees. The challenge for us as a lender is liquidity. In a downturn, or if we have to foreclose, how long will it take to sell that property without a major price drop? With an aging population, a vulnerable local economy, and limited amenities—the nearest hospital is under an hour away—the timeline is going to be much longer than in a larger centre.

This is why our lending here is conservative. We’re looking for borrowers with significant equity and a clear, low-risk purpose for the funds. For a strong file, we will lend in Barriere, but our risk mitigation is straightforward. To protect our investors’ principal against a slow resale market and potential carrying costs, our maximum loan-to-value in Barriere is 55.0%. This buffer is essential to manage a worst-case scenario, and it’s the foundation of every loan we approve.