Granisle

Underwriting in remote northern BC markets

Granisle is a prime example of why we position Tekamar as the go-to private lender for communities outside the major urban centers. Originally established as a company town for the copper mines on Babine Lake, this village of 337 residents sits deep in the Bulkley-Nechako region. While the population grew by 11.2% since 2016, the local economic engine is extremely limited. The mining operations are long gone, leaving public administration at 25% of local employment, followed by health care at 18.8% and transportation at 18.8%.

When structuring a file here, you cannot look at it like a standard residential deal. The demographics dictate the market. The median age in Granisle is 64 years, with seniors making up 45% of the population. Only 47% of the town is within the traditional working-age bracket. The actual employment rate is 18.3%, paired with a high unemployment rate of 33.3%. Traditional wage-earners are rare. Most locals survive on fixed retirement incomes, pensions, or seasonal tourism. When we underwrite a property in this area, we treat it as a retirement or recreational asset, not an owner-occupied deal supported by local employment.

Liquidity challenges and housing stock

Granisle has 262 private dwellings, consisting mostly of single-detached houses at 76.9% and row houses at 12.8%. The real estate market here is incredibly thin. While out-of-town buyers and retirees occasionally buy cabins or modest homes for lake access, average days-on-market can stretch into several months. For appraisers, finding recent, reliable local comparables is a major hurdle. Standard town lots can be highly unpredictable to value, while waterfront lots on Babine Lake are the only segment that maintains steady demand.

Traditional institutional lenders and even mid-tier B-lenders will not look at properties in this pocket. The liquidity risk is simply too high. If a deal goes sideways, liquidating a property in a town with a Community Desirability Score of 5/10 and an Economic Score of 3/10 is a slow process, especially during northern winters.

How we structure Granisle deals

We manage this geographic and economic risk by keeping our leverage conservative. In Granisle, we cap our maximum loan-to-value at 35.0%. We cannot push past this limit, regardless of the borrower’s profile.

Our sweet spot in this market is an equity-rich borrower who needs a clean exit strategy. This usually looks like a retiree looking to consolidate high-interest debt against a free-and-clear property, or a buyer purchasing a recreational cabin who needs a short-term bridge loan while waiting for another property to sell. If your client has a solid exit plan and substantial equity to protect the file, we can work with you to get the deal funded.