Kelowna

Lending in Kelowna, BC

Kelowna is the engine of the Okanagan, but for any lender, the real story isn’t the postcard view of wineries and houseboats. While the lifestyle gets people in the door, it’s the city’s economic fundamentals that create a stable real estate market and make this a core lending area for us. We see a constant influx of retirees and equity-rich buyers from the Lower Mainland, creating a deep and consistent demand base that isn’t easily shaken by market jitters. The city’s population has jumped by 13.5% since 2016 to over 144,000 people, and that’s not a fluke—it’s a sustained trend driven by real economic opportunity and quality of life. The quick average commute of under 20 minutes is just one example of the lifestyle that keeps drawing people in.

What we see behind the tourism facade is a maturing and diversifying economy. Tourism, agriculture, and wine are the obvious drivers, but they’re not the whole story. Healthcare is the largest employer, with retail and construction not far behind. This isn’t just a service economy, either; the professional and technical services sector is a major employer, thanks in part to the University of British Columbia Okanagan (UBCO). UBCO acts as a significant anchor, attracting a skilled, educated workforce—over two-thirds of the population has post-secondary education. This economic mix, with a healthy 60.2% employment rate, means Kelowna isn’t vulnerable to a downturn in a single industry, a critical factor in our risk assessment.

From our perspective, the local geography is as important as the economy. The Okanagan Valley, with the lake at its center, creates natural constraints on development. You can’t just sprawl in every direction. When you combine that with the Agricultural Land Reserve protecting the valley floor, it creates a fundamental limit on new housing supply. Single-detached houses still make up over 42% of the housing stock, and building more of them is getting harder and more expensive. This dynamic provides a strong backstop for property values. Demand consistently outpaces the ability to build, which supports long-term asset appreciation and mitigates our lending risk.

This combination of resilient demand, a diversified economy, and supply constraints is why we are so comfortable lending in Kelowna. It’s one of the few markets in our operating area where the depth and liquidity of buyers justify our highest exposure. For strong properties and qualified borrowers, our maximum LTV in Kelowna is 70%. We see a clear path to recovery in a foreclosure scenario because there is always another buyer—a retiree from Vancouver, an investor with cash, a growing family—waiting to get into this market. We understand these dynamics well and are actively looking to fund more deals here.