Highlands

Lending in the Highlands

To understand the Highlands real estate market, you just need to look at a map of Greater Victoria. While it sits right on the edge of the urban footprint, nearly the entire district is covered by provincial and regional parks. It is a strictly rural, low-density enclave of 2,482 residents that actively resists development. With a population density of just 65.3 people per square kilometer, it is a quiet, heavily forested community. At Tekamar, we have always been the MIC for towns without stoplights. Even though Highlands is only a short drive from the city, its raw, country feel matches our lending style perfectly.

The housing market here is limited by design. Out of the 927 private dwellings in the district, 94.5% are single-detached houses. You won’t find row houses or dense condo developments here. People buy in the Highlands for space, privacy, and acreage, knowing they still have a manageable 26.9-minute average commute. Because building is heavily restricted and the local population has grown 11.6% since 2016, usable residential land is incredibly scarce. Buyers are not paying for proximity to walkable retail; they are paying for the privacy of the woods.

Economically, the Highlands functions as an affluent commuter town. There is almost no commercial or industrial zoning inside the municipal boundaries. Residents drive into neighboring communities for groceries, schools, and services. The local workforce is highly stable and educated, with 66.6% holding post-secondary credentials. Many of these borrowers are well-compensated professionals, public administrators, and construction sector business owners, driving a median household income of $122,000. With an unemployment rate sitting at just 4.9%, the demographic profile is exceptionally stable.

When we underwrite deals in this market, we look closely at the exit strategy. Because we lend capital pooled from friends and family, protecting that principal is our primary job. We do not gloss over the logistics of a worst-case scenario. We look at how long a foreclosure takes in BC, how much interest will accumulate during the process, and how long a high-end rural property might sit on the market if a borrower defaults.

Despite those risks, the Highlands is an easy market for us to back. While the properties are unique, the constant demand for acreage near Victoria keeps land values incredibly stable. This strong local demand earns the community a 10/10 desirability score and a 7/10 economic score in our books. Because of these strong fundamentals, we are comfortable pushing our leverage limits. For the right property, Tekamar will lend up to a 70.0% LTV in the Highlands.

Most of the files we see here are clean bridge loans for clients transitioning between properties, or equity takeouts for debt consolidation. If you have a borrower looking for alternative financing on a single-family home or acreage in the district, send us the package. We know this market inside and out, and we will give you a straight answer quickly.