Kimberley

Lending in Kimberley, BC

Kimberley is the classic story of a Kootenay mining town that had to reinvent itself. For almost a hundred years, the Sullivan Mine was the only game in town, a massive operation that defined the local identity and economy. When it shut down for good in 2001, the community faced a serious challenge. Instead of fading away, it pivoted hard, leaning into the Kimberley Alpine Resort and transforming the area into a true four-season destination with golf courses and extensive trail networks. For brokers, this history is key. You’re not dealing with a typical, fragile resource economy susceptible to commodity prices. You’re looking at a more stable market, but one still shaped by its industrial past, now driven primarily by tourism and lifestyle buyers.

The real estate market clearly reflects this new identity. It’s a market built for families and vacationers, where single-detached homes make up over 76% of the housing stock. Apartments and row houses are a much smaller slice of the pie, which tells you this isn’t a high-density urban centre. We see consistent demand from retirees and out-of-province buyers, particularly from Alberta, who are drawn to the mountain lifestyle and relative affordability. This provides a solid base for property values and keeps the market liquid. The town’s population grew by over 9% between 2016 and 2021, proving that the appeal is real and sustainable. It’s a place with a unique character, from the Bavarian-themed Platzl downtown to its practical proximity to the airport in Cranbrook.

From our perspective as a lender, though, we have to look past the ski hills and assess the fundamentals of the local economy. The main employment sectors are what you’d expect in a resort town—health care, retail, and accommodation services—but the unemployment rate is 7.7%. That’s a number that gets our attention, as it suggests a tighter job market than in larger centres. The median household income of $81,000 is respectable, but it’s important to understand the context. With nearly a quarter of the population aged 65 or older and government transfers making up a significant portion of local income, the economy relies heavily on pensions and tourism spending, not on a growing base of high-wage industrial or professional jobs.

So what’s our final take? Kimberley’s lifestyle appeal is undeniable, and its successful transition from a mining town is impressive. It’s a solid, predictable market where we’re comfortable placing funds, but it doesn’t have the economic diversification or depth of a major hub like Kelowna. We see good value and manageable risk, particularly for borrowers with stable, non-local income or significant equity. Our lending position reflects this balance. We cap our exposure in Kimberley at a maximum loan-to-value of 65.0%. This strategy lets us back strong deals for qualified borrowers in a desirable town, while properly managing the risks inherent in a smaller, tourism-dependent economy and protecting our investors’ capital.