Fraser Lake

Fraser Lake is a Highway 16 town, plain and simple. Situated about 150 kilometers west of Prince George, it’s a community defined by its resource-based economy and quiet, rural setting. This isn’t a resort town chasing seasonal dollars or a bedroom community for a larger centre. The vibe is small-town BC, built around the lake and a history of logging, mining, and its Carrier First Nations heritage. With a population of just 965 that has seen a slight decline in recent years, the real estate market here is stable, not speculative. It serves the people who live and work in the area, period.

From a lending perspective, the numbers tell a story that requires a cautious approach. The economy is not diversified. Manufacturing makes up nearly a third of all jobs, with mining and forestry also playing major roles. That kind of concentration is a red flag for us. When a single industry slows down, the ripple effects can be severe in a small town. This risk is amplified by an unemployment rate that sits at a high 12.4%. This isn’t an economy with a deep bench of employers to absorb job losses, which directly impacts mortgage stability.

The demographics and housing stock reinforce this cautious stance. The median age is 43.6, and over 21% of the population is 65 or older. This points to an older, more established community, not a rapidly growing one attracting young families. The housing inventory reflects this: two-thirds of all dwellings are single-detached houses. There is virtually no market for duplexes or new apartment buildings. Combined with a harsh climate—it’s a Zone 4a, tough for anything but the hardiest plants—the appeal for a broader vacation or retiree market is very limited. This isn’t a criticism of the community; it’s a realistic assessment of the small, local buyer pool we’re dealing with.

We will lend in Fraser Lake, but our strategy is conservative by necessity. Our entire model is built to protect our investors’ capital, so we have to underwrite every deal for a worst-case recovery scenario. In a small, remote market with a non-diversified employment base, a forced sale is a slow, expensive process. Finding a qualified buyer takes months, not weeks. During that time, carrying costs add up and eat into the recovery value. The small buyer pool means less competition and lower sale prices. For these reasons, our position is firm. We will consider deals in Fraser Lake, but only to a maximum loan-to-value of 45.0%. This provides the buffer we need to operate safely in this type of market and stand by our commitment to capital preservation.