Hope

Hope, BC

Hope’s identity is defined by its geography. It is the critical junction of the Trans-Canada and the Coquihalla highways, the point where the Lower Mainland gives way to the Interior. For many, it’s a gas stop and a place to grab coffee, famous for the Othello Tunnels and its role as the backdrop for First Blood. But for brokers sizing up a deal, what’s happening on the ground is more complicated.

This is a community with deep roots, primarily as the site of Ts’qo:ls, a major historical hub for the Stó:lō Nation. The Chawathil First Nation and surrounding Indigenous communities give the area a distinct character you don’t find in a typical highway town. It has a legitimate, non-manufactured identity tied to the land and its history. This cultural anchor, combined with the dramatic natural setting at the confluence of the Fraser and Coquihalla rivers, creates a strong lifestyle appeal for a certain buyer—often retirees or those cashing out of more expensive markets.

From a lending perspective, however, the economic indicators are a problem. The population has grown by a modest 8.2% since 2016, but the demographics inside that growth tell the real story. With a median age of 54.8 and over 31% of the population aged 65 or older, the community skews heavily toward retirement age. This is reflected in the housing stock, where single-detached houses make up 74% of all dwellings while apartments account for only 7%. It is a stable, established market, not a high-turnover, growth-oriented one.

The real red flags for us are in the local economy. A median household income of $64,000 paired with an unemployment rate of 11.6% points to a lack of high-paying, stable jobs. The economy leans on retail, healthcare, construction, and food services—sectors that are often lower-wage and vulnerable to economic shifts. This employment profile makes sense when you see that only 13.4% of the adult population holds a bachelor’s degree or higher. There simply isn’t the depth of high-income earners needed to feel secure in a foreclosure scenario.

When we model a worst-case recovery, the combination of high unemployment and low household incomes shrinks the pool of potential buyers and puts downward pressure on a potential sale price. The very stability of the housing market, with its limited turnover, could work against a quick disposition in a forced sale.

Putting it all together, Hope is a no-lend area for us. The risk profile is outside our mandate of absolute principal protection for our investors. While the community has a strong identity and undeniable natural appeal, the economic fundamentals just don’t work.

Our maximum loan-to-value in Hope is 0.0%.